According to various suppliers, chief among them being Delphi Automotive, China’s interest in the latest developments of automotive technology is poised to lift demand for connected car driving.
The auto parts makers implicated in the segment are expected to see a rise in Asia-Pacific revenue thanks to China’s demand for Internet-connected vehicles. Delphi for example is hard at work researching and developing auto electronics that make use of Internet connectivity but don’t require the driver’s attention enough to become a distraction, according to chief technology officer Jeffrey Owens. The features seen crucial by Delphi include reconfigurable displays and increased computing power to make use of the latest Internet connectivity features. Across the Chinese market, carmakers – including the global players and the big local rivals – seek to attract a younger audience with connected vehicles as the sales are slowing the world’s biggest auto market.
According to research firm JD Power & Associates, while in other developed markets the average age of car buyers is very high, in China the demographics are way faster – with car buyers being on average 33-years old, with a growing purchasing power for the group also highlighting the options for the automakers. When it comes to the so-called millennial generation, the battle to lure customers has moved away from performance or styling into the field of user experience. To better compete in the growing field of automotive technology, a total of around 70 percent of the world’s automotive suppliers and other companies surveyed by Ernst 7 Young LLP said they seek to make a purchase in the field over the coming twelve months.