China's connected car market is expected to explode in 4-5 years as Chinese willingness to pay for connected car features increases, Deloitte said in a report The middle claims.
Automotive smart network connection continues to attract funds to enter, for car companies, when to usher in the market outbreak is a concern.
Especially in the car market downturn led to the decline in profits in the production and manufacturing process, smart network connection is considered to be expected to become a new profit growth point .
Deloitte believes that the current automotive smart grid is in the first stage of development - the gradual spread of smart grid-connected cars.
But with the gradual maturation of 5G communication networks, V2X and other infrastructure, it will enter the second stage from around 2023 to 2025. Deloitte's forecast is based on two main reasons.
Deloitte makes these predictions for two reasons.
On the one hand, with reference to the development trajectory of China's smartphone industry, Deloitte believes that smart grid-connected vehicles will follow the same logic. The market outbreak can only come after three stages: improving product power, improving infrastructure and accumulating user scale.
However, as the replacement cycle of cars is longer than that of mobile phones, the iteration is relatively slow, and the market maturity and outbreak are lagging behind.
On the other hand, changes in consumer attitudes and policy support will accelerate the arrival of the market explosion.
According to Deloitte's survey, compared with a year ago, consumers are more interested in internet connectivity than they were a year ago," said Zhou Lingkun, managing partner of Deloitte China's automotive industry. Willingness to pay has increased further.
More than 90% of Chinese consumers say they are willing to pay for Telematics-related technologies, with 25-30% of them paying. Willingness exceeds RMB 5,000, the survey showed.
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