Chinese Auto Makers Want to Go High-Tech
April 4, 2014 Leave a comment
12:00 pm
Mar 24, 2014
Chinese Auto Makers Want to Go High-Tech
In China, tech trends have been slowly catching up with the West, and in the race to make a car that connects with smartphones and other gadgets, Chinese auto makers are right on their global competitors’ bumpers.
Broadcom Corp. Chief Executive Scott McGregor said while the automotive industry has traditionally been slow to adapt to technology changes, a “real revolution” is now taking place with connectivity at its core.
“A real innovation ground for autos in the next 10 years is going to be how to develop the user interface of a connected car, what applications to provide, how they connect…[to] bring all of this content to the user and passengers of the car,” Mr. McGregor said in a recent interview.
“Chinese car companies are very eager to embrace this technology and we see them moving rapidly.”
Chinese auto makers are struggling in the domestic market against popular foreign brands. In the first two months of this year, market share for domestic brands was 23%, down from around 30% in the year-earlier period. In an effort to boost their appeal, some are increasing their emphasis on offering information and entertainment in their cars via in-car screens and connections to gadgets, according to Tim Lau, Broadcom’s associate product director for automotive Ethernet.
Chip companies such as Broadcom hope to supply the auto makers with the processors that enable such new functionalities.
A group of more than 200 auto makers and components suppliers is collaborating with Broadcom to develop standardized broad-reach Ethernet for the auto industry. In recent months, China’s FAW Group and Pan Asia Technical Automotive Center, a joint venture between SAIC Motor and General Motors, joined. Mr. Lau said many more Chinese car makers have expressed an interest in participating.
China offers “huge opportunities” as local car brands such as Geely, BYD, Chery and Great Wall Motor look to set themselves apart through technology, Mr. Lau said.
Other technology providers such as Apple are also eyeing opportunities presented by connected cars. Apple recently announced it was working with Ferrari and Volvo to develop an on-board operating system.
Also pushing the trend has been China’s bid to quickly expand its new fourth-generation mobile network, something Mr. McGregor said could “enable a lot of these connected cars and the content that goes with them.”
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