There is a healthy demand among Chinese consumers for both apps on smartphones and the integration of apps in the car. A survey of Chinese smartphone owners who have purchased a new car in the past two years performed by SBD indicates that many consumers may even be willing to pay for such a feature in the car.
While the SBD research encourages vehicle manufacturers to push ahead with developing app-based solutions, there are some China-specific challenges that need to be addressed:
- The market for navigation and infotainment in China is still immature and consumer attitudes are changing rapidly as new products and services are launched. However, demand is there with Map&Navigation ranked as second most important.
- Consumers prefer to buy their apps from multiple independent third party stores. This will be challenging for vehicle manufacturers to manage.
- The top ranked app is an input interface using Chinese characters. This indicates that the HMI will be a key issue for in-car solutions.
Despite these challenges, the consumer survey indicates that there is enough consumer demand to push vehicle manufacturers towards producing app-based in-car solutions in China. In addition, there is strong competitive pressure from aftermarket navigation system suppliers who are developing sophisticated rivals to OE systems.
The SBD survey gained further insight by comparing consumers from Tier 1 cities such as Beijing and Shanghai with those from Tier 2/3 cities. In addition, the research compares age groups by contrasting the opinions of those under and over 35 years old. Not surprisingly, the most enthusiasm for in-car apps is expressed by younger respondents in Tier 1 cities.
SBD’s China survey of consumer attitudes towards phone and in-car apps is accompanied by an analytical report highlighting the key issues and trends. For more information on how to obtain this survey, contact Juanita Appleby by email on jappleby@sbd.co.uk