Car DVD players are evolving into all-in-one units

	Coagent's CA3689 model is designed for the Mazda CX-9 and features a TFT HD digital screen.

Car DVD player suppliers in China are emphasizing product development and increasing export ratios to broaden reach. The line currently accounts for 80 percent of total in-vehicle entertainment device shipments. With the automotive aftermarket sector as target, makers are gearing up to release new devices to compete head-on with car manufacturers that offer preinstalled options. This challenge to innovate is at the core of development initiatives at present.

Backed by rapid growth in recent years, DVD players now dominate China’s car entertainment sector, edging out audio systems. DVD playback is the basic function but advanced features are integrated to build an all-in-one infotainment package. The trend is especially apparent in front-seat in-dash models, making this configuration the most-popular mount.

Recent releases with either 1 or 2-DIN head units have not only A/V playback but also GPS, RDS, parking assist and tire pressure monitoring. Coagent Electronic S&T Co. Ltd’s in-dash players provide optional add-ons such as navigation, TPMS, OBD, TV box, rearview sensor or camera and handbrake control.

In-dash variants have evolved from stand-alone devices to become a control center that can direct a vehicle’s infotainment system down to configuring the headrest monitor’s display. This level of integration is nearing reality for tier 1 makers Coagent and Huizhou Foryou General Electronics Co. Ltd.

For back-seat units, including headrest or flip-down types, the feature set takes into account the entertainment needs of the passengers. These support all kinds of A/V playback through different interfaces and built-in decoders or modules. USB, memory card readers and IR and FM transmitters are inclusions, as are TV receivers and speakers.

Beyond the all-in-one trend, makers are developing user-friendly interfaces and designs. Releases such as Huizhou Foryou’s CE6620 model feature a WVGA touchscreen TFT-LCD screen dynamic GUI. There are units with a detachable front panel to address theft or abuse issues.

Some suppliers have achieved improvements in other aspects of user comfort. Coagent’s car DVD players pack a virtual 6-disc CD changer. Huizhou Foryou has rolled out a type that boasts a dimmer mode, which allows the device to play music even with the screen turned off. Other varieties have a clock display that operates at shutdown setting. Huizhou Desay Auto Electronics Co. Ltd’s phone-book access function enables browsing or dialing of a contact via Bluetooth connection from a mobile phone. The maker lists developing user-friendly designs together with improving functionality as a major R&D thrust.

To sustain growth in the line, suppliers are taking proactive steps to boost business, which suffered with the slump in the aftermarket industries in North America and Europe. Coagent expects to raise 2010 shipments by 8 percent, with deliveries going to North and South America and Russia. The company set up a subsidiary in Hungary recently to serve as a technical R&D and sales center for Europe. It also plans to explore new destinations such as India and Mexico.

Huizhou Foryou sees a 30 percent increase in export business this year. It is looking to upgrade selections and tap developing countries and emerging markets.

Shenzhen Hantong Technology Electronic Co. Ltd is setting its sights on Brazil and Russia, while Davie Electronics Co. Ltd eyes the aftermarkets of the Middle East and South America.

Financial uncertainty in target destinations and price competition are the top challenges in this line. The former, in particular, is expected to affect sales of upscale all-in-one systems.

Products & prices
Industry demographics

China-made car DVD players come in front-seat in-dash, sun visor, back-seat headrest and flip-down types, with the first configuration being the most-popular. Entry-level releases are usually 1-DIN head units without screens. Motorized display-equipped versions such as the DV7620 model from Huizhou Foryou are gaining ground, however. These variants save space and at the same time provide a large screen as easily as a 2-DIN configuration. The last is more common in pricier kinds because the design supports not only the integrated screen but also the various built-in functions.

There are also specially designed units that match the vehicle’s interiors. Major suppliers, including Coagent and Huizhou Foryou, can provide these regularly for leading brands such as GM and Toyota. Small and midsize makers, however, cannot afford to develop models for every new car design. Instead, they turn to producing universal versions that suit either 1 or 2-DIN space.

Headrest and flip-down car DVD players support screens larger than 10in, suitable for watching films or playing games. Sun visor variants usually come with a rearview system or GPS function.

The key components are the LCD panel and DVD mechanism and solution. The ICs include those for the GPS, Bluetooth, tuners, amplifier and USB controller. These are generally sourced from SiRF, CSR, Broadcom, Samsung, STMicroelectronics and ROHM.

Jianghai (Zhuhai), Shinwa, Sanyo and Sony are the mainstream loader suppliers, while the majority of solutions come from MediaTek and Sunplus.

Tier 1 companies such as Foryou and Coagent produce the loader and solution themselves to ensure quality requirements are met. The strategy also allows them to sell the inputs to other local enterprises.

The LCD or touchscreen panels are typically from Taiwan and South Korea providers, including AUO, CMO, HannStar, Prime View, Innolux, LG and Samsung.

The materials and components used and value enhancements are the major price determinants. Entry-level 1-DIN car DVD players without screens go for $40 to $60. Double-DIN head units with 5 to 7in displays and multimedia playback are between $80 and $150. Advanced all-in-one types with 800x480-pixel touchscreen and customized add-ons are above $150.

Through the launch of new models, China suppliers are keeping price and profit margins stable despite the threat of increasing labor and component costs.

	The model CE 6620 2-DIN player from Huizhou Foryou has built-in navigation function and auto-dimmer.

There are more than 300 car DVD player manufacturers in China. A number, including Huizhou Foryou, Coagent, Hangsheng and Skypine, have emerged as market leaders following years of development. These have an annual output capacity of 1 million units. Many have entered the upstream chain to turn out own components.