Infotainment & Telema$Cs
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November 2, 2015 Strategy Analy6cs, Inc 1 Kevin Li Strategy Analy6cs GENIVI 13th All-Member Mee6ng & AMM OPEN DAYS November 2, 2015 Strategy Analy9cs, Inc 2 AGENDA 1 Telema9cs Market Situa9on in China 2 Soware Topics-Smartphone GW & OS 3 Internet Company's Automo9ve Prac9ce 4 HMI & Consumer Interest 5 Aersales Market November 2, 2015 Strategy Analy9cs, Inc 3 HIGH LEVEL CHINA MARKET OVERVIEW Source: Strategy Analy6cs • 154 mIllIon cars by the end • 8% passenger cars sold In 2014 154 Mil of 2014 8% were connected In the OEM market • 17 mIllIon cars net growth • 30% passenger cars sold In the OEM 17 Mil from 2013 to 2014 30% market wIll be connected In 2018 November 2, 2015 Strategy Analy9cs, Inc 4 CHINA TELEMATICS MARKET LEADERSHIP Typical Players in OEM Market Network OEM Speed TSP Carrier In-vehicle OS Free Trial Qoros 3G MicrosoY ChIna UnIcom MicrosoY QorosQloud Lifeme BMW QNX ChIna UnIcom ConnectedDrIve 3G ChIna UnIcom GENIVI 3+7 Years Volvo ChIna UnIcom MicrosoY Sensus 3G WIrelessCar 3+7 Years Lexus ChIna Telecom QNX G-BOOK 2.5G YESWAY 4-6 Years Volkswagen VerIzon MicrosoY ChIna UnIcom Car-Net 3G Telemacs ChIna QNX 4 Years Mercedes-Benz VerIzon MicrosoY ChIna Telecom CONNET 3G Telemacs ChIna QNX 3 Years Audi ChIna UnIcom QNX AudI connect 3G WIrelessCar 3 Years SAIC 3G PATEO ChIna UnIcom AndroId InkaNet 2 Years BYD MicrosoY 3G/2.5G BYD All three 2 Years BYD Cloud AndroId Embedded telema%cs is evolving to longer free trial period. November 2, 2015 Strategy Analy9cs, Inc 5 INDUSTRY CHALLENGES: CHINA CONVERGENCE OF INFO-TELEMATICS & SAFETY Automa9c Crash Remote Service Vehicle Data FOTA Contextual Noficaon Diagnosis/Control Scheduling Acquisi9on Awareness November 2, 2015 Source: Infotainment & Telemacs Service 6 MAJOR TELEMATICS SERVICE PROVIDERS IN CHINA Es6mated Telemacs TSP OEM Customers Subscribers ChIna TSP Chang'an, FAW, GAC, Geely Cumulave 200k+ by June 2015 VerIzon Telemacs Mercedes-Benz, Volkswagen 160k ac6ve by June 2015 China Shanghai OnStar Shanghai GM 850k ac6ve by March 2015 PATEO BAIC, CAPSA, DPCA, SAIC Cumulave 200k+ by June 2015 TImaNetworks CoWin Auto, GAC 20k+ ac6ve by June 2015 Cumulave 1 mIllIon by YESWAY/95190 Acura, BAIC, Hyundai/KIa, Toyota/Lexus June 2015 November 2, 2015 Source: Infotainment & Telemacs Service 7 HARDWARE IN MARKET (CUMULATIVE) OEM EMBEDDED TELEMATICS - GLOBAL 180,000 160,000 140,000 120,000 100,000 Hardware In Market 80,000 Units (000's) 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 2016 2017 2018 November 2, 2015 Source: Infotainment & Telemacs Service 8 ACTIVE SUBSCRIPTIONS (CUMULATIVE) OEM EMBEDDED TELEMATICS - GLOBAL 180,000 160,000 140,000 120,000 100,000 Hardware In Market 80,000 Acve Subs UnIts (000's) 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 2016 2017 2018 November 2, 2015 Source: Infotainment & Telemacs Service 9 IN-ACTIVE SUBSCRIPTIONS(CUMULATIVE) OEM EMBEDDED TELEMATICS - GLOBAL 180,000 160,000 140,000 120,000 100,000 Hardware In Market Acve Subs 80,000 Inac6ve Subs UnIts (000's) 60,000 40,000 20,000 0 2011 2012 2013 2014 2015 2016 2017 2018 November 2, 2015 Source: Infotainment & Telemacs Service 10 INACTIVE SUBS = DEAD $$$ OEM EMBEDDED TELEMATICS (UNITS/REVENUES) 45,000 4,500 Over $4 Billion wasted In 2017 alone 40,000 Over $12 BIllIon wasted 2011 à 2017 4,000 35,000 3,500 30,000 3,000 25,000 2,500 20,000 2,000 UnIts (000's) 15,000 1,500 10,000 1,000 Revenues (USD MillIon 5,000 500 0 0 2011 2013 2015 2017 Revenues UnIts November 2, 2015 11 AGENDA 1 Telema9cs Market Situa9on in China 2 Soware Topics-Smartphone GW & OS 3 Internet Company's Automo9ve Prac9ce 4 HMI & Consumer Interest 5 Aersales Market November 2, 2015 Strategy Analy9cs, Inc 12 CONNECTIVITY OPTIONS: NO CLEAR WINNER November 2, 2015 Source: Infotainment & Telemacs Service 13 PREDICTION ON SMARTPHONE/GATEWAY CONNECTIONS 120,000 100,000 80,000 60,000 Units (000's) 40,000 20,000 0 2013 2014 2015 2016 2017 2018 2019 2020 * ProprIetary/Other Carplay AndroId Auto MirrorLInk VehIcle Sales * e.g. UVO, Entune, MyLink, etc. …But…Limited Control Consumer Interest is High of the IVI Environment! November 2, 2015 Source: Infotainment & Telemacs Service 14 LIMITED OEM DIFFERENTIATION-CARPLAY & ANDROID AUTO November 2, 2015 Strategy Analy9cs, Inc 15 OVERVIEW OF BAIDU CARLIFE DEMOS OEM Demos Tier 1 Demos November 2, 2015 Strategy Analy9cs, Inc 16 KEY MESSAGES OF BAIDU CARLIFE • Major UIs of CarLife Homepage Phone Page Music Page Map & Navi Page • Key Indicators of CarLife Ø Connec6on to head unIt: USB, WI-FI Ø VehIcle data support: up to 300+ data sets from the vehIcle Ø Head unIt OS support : LInux, QNX, WInCE, AndroId 4.1 and later Ø License fee: free Ø Smartphone support: AndroId 4.1/IOS 7 and later Ø Corporate apps: 9 Ø Screen resolu6on: 800*480 Ø Market regIon coverage: ChIna and AsIa • CarLife Partners and Market Launch Informa9on Ø CarLife Partners: 20 OEMs, 13 TIer 1s and four aersales servIce provIders. Ø Demos : HyundIa & KIa, DelphI, Harman demoed CarLIfe In AprIl In Shanghai Auto Show; AudI, Mercedes-Benz, Shanghai GM and Adayo demoed CarlIfe In May 2015 In CES AsIa. Ø Market Launch: Hyundai ‘s Tucson model on September 2015, BYD’s Song model and KIa’s K5 In October 2015 November 2, 2015 Strategy Analy9cs, Inc 17 MAJOR GATEWAY SOLUTIONS-CHINA A-Link by CarLife by SiViLink by MirroLink mySPIN by Bosch AutoNavi Baidu Desay SV Ver 1.1: USB Connecon to USB, Wi-FI USB, Wi-FI USB, Wi-FI Ver 1.2:Miracast Bluetooth, USB, WI-FI HDMI ongoIng Headunit Bluetooth Smartphone SymbIan, AndroId, MobIle iPhone & Android iPhone & Android iPhone & Android iPhone & Android Support Linux LInux, WIndows, QNX, In-vehicle OS WinCE, AndroId, WinCE, AndroId , TIzen, AndroId, uITRON, LInux, QNX and WInCE LInux and AndroId Linux QNX, Linux, support T-Kernel >15 In ChIna, >26 In EU 5 9 9 Not dIsclosed Corporate Apps and NA Needed for device May needed for App TBD Free Needed for OEMs License Fee venders developers 20 OEMs Jaguar Land Rover, GAC 20+ 10+ OEM Partners 13 TIer 1s Renault Evoque (Land Rover), Commercial Seven models of Hyundai , KIa, BYD VW, Skoda, Shanghai GM, XE (Jaguar), AlpIne SGMW GAC in 2015 PSA, Honda, Toyota, SAIC Launch (Renault) November 2, 2015 Strategy Analy9cs, Inc 18 OS DEMAND IN NA, EU & CHINA: BY OEM 2012 2013 2014 Other 18 Volkswagen Group Toyota Group 16 SuzukI Group 14 SAIC Group Renault-NIssan Group 12 PSA Group 10 Mazda Motors 8 Hyundai Group Honda Group Volume (Millions) 6 General Motors Group 4 Ford Group FIat-Chrysler Group 2 Daimler Group 0 Changan AutomobIle Group QNX MicrosoY Linux GenIVI QNX MicrosoY Linux GenIVI QNX MicrosoY Linux GenIVI BMW • QNX very strong at GM • Ford largest MicrosoY user (SYNC) • LInux volumes emergIng strongest at Renault-NIssan November 2, 2015 Source: Infotainment & Telemacs Service 19 OS DEMAND IN CHINA: BY OEM OEM Tier 1 OS Supported AlpIne, Foryou, HSAE, PanasonIc, BAIC MicrosoY Shenzhen Borong BYD NAD: HuaweI, Fibocom MicrosoY, AndroId MicrosoY, ProprIetary LInux, Chang’an ChIna TSP, Coagent AndroId Chery Desay SV, JIangsu TopPower MicrosoY MicrosoY, ProprIetary LInux, FAW Infive, Qiming AndroId GAC Foryou AndroId Geely ChIna TSP, Harman MicrosoY, QNX Qoros AlpIne, NeusoY MicrosoY SAIC FlairmIcro, PATEO, PIoneer AndroId November 2, 2015 Source: Infotainment & Telemacs Service 20 SOFTWARE RELATED RECALLS INCREASED Mechanical recalls are shiGing to soGware related recalls. • 80% of recalls In ChIna were related to engIne, airbag, safety belt and suspensIon system In 2012-2014. • In 2013, more than 10 mIllIon vehIcle recalled In the US because of safety-related Issues. • In 2014, 293k+ soYware related recalls In ChIna related to airbag control unIt, body control module and engIne control whIch were Involved In five OEMs. November 2, 2015 Source: Infotainment & Telemacs Service 21 AGENDA 1 Telema9cs Market Situa9on in China 2 Soware Topics-Smartphone GW & OS 3 Internet Company's Automo9ve Prac9ce 4 HMI & Consumer Interest 5 Aersales Market November 2, 2015 Strategy Analy9cs, Inc 22 INTERNET COMPANIES’ MAJOR AUTOMOTIVE PRACTICES • CarLife: Released In January 2015, launched to the market In Hyundai BYD and KIa models In 2015, CarLIfe’s partners Include: 20 OEMs, 13 TIer 1s and four aersales servIce provIders . • MyCar: vehIcle prIvate cloud and complete ecosystem for aersales market, launched In BYD Song. • CoDriver: voIce recognI6on solu6on for In-vehIcle usage • CarGuard: safety solu6on for connected car. • Autonomous Driving: SIgned agreement wIth BMW In September 2014, to provIde HD map, also aims at the R&D of sensIng system, decIsIon support system and control system. • Automo9ve Strategy: Involves cooperang wIth OEMs, used-car dealers, and aersales servIce companIes to create an 'Internet + Automo6ve' ecosystem. • Alibaba’s Automo9ve Business: Ø Telemacs applIcaon: AutoNavI (map & navIgaon), XiamI (music) Ø Automo6ve e-Commerce: Tmall (new car sales), Taobao (spare parts, used car, aersales servIce) Ø Internet car: cooperates wIth SAIC to deploy YunOS In the car and Improve UX In the future Ø Supporve resource: AlIpay, AlI Telecom, Ant FInancIal, AlIyun, AlImama (onlIne AD, sales leads) • Tencent Automo9ve Service: Ø In-vehicle ROM: embedded telemacs solu6on currently cooperang wIth aermarket TIer 1s Ø In-vehicle App: smartphone connec6vIty based app solu6on Includes WeChat, QQ, MusIc app, real 6me traffic Ø MyCar: OEM orIented, app Integraon Includes WeChat, QQ, demoed In Mercedes-Benz GLE In October 2015 • Internet+Intelligent EV: SIgned agreement wIth Foxconn and Harmony on the creaon of the domes6c IntellIgent EV brand and the whole ecosystem In March 2015. November 2, 2015 Strategy Analy9cs, Inc 23 CAR MAKING STORIES IN CHINA-INTERNET THINKING • Market Posi9on: End-to-end solu6on provIder and an OEM In the future Ø IVokaOS: AndroId based In-vehIcle OS used by SAIC’s InkaNet and compable to Ford’s SDL Ø TSP: ServIce provIder for PSA, BAIC, SAIC, call center for Volvo Ø AYermarket: AndroId based headunIt and embedded SIM based OBD dongle used In Chery Ø Project N concept car: A vIsIon for automated drIvIng EV that has foldable steerIng wheel, super large dIsplay, “natural” user Interface for In-vehIcle HMI or HMI exterIor etc.