Car antennas

	Zhongshan K-mate markets Bluetooth handsfree car kits such as model BTC006.

R&D and expansion go on hold as makers weather the market downturn. Redirected strategies keep the industry afloat.

Cautious with their export projections, suppliers of car electronic accessories in China are holding off on in-house R&D, particularly for aftermarket designs.

To sustain business amid slowing orders, some companies are gearing operations toward OEM-based production for carmakers.

This strategy is common among manufacturers of A/V accessories that require installation during automobile assembly such as antennas.

Suppliers of car TV mounts, meanwhile, are tapping the domestic in-vehicle entertainment segment, which continues to offer growth opportunities thanks to China’s booming automotive industry. According to the Shanghai Daily, sales of passenger cars in the country increased 10 percent in March 2009 to reach 1.1 million units, surpassing the US for the third straight month.

In-house R&D is likewise limited in the low-end segment of car entertainment accessories.

Hit hard by the economic downturn, the line saw a 30 to 50 percent drop in output last year as suppliers struggled with market oversaturation and intense price competition.

This is particularly true among manufacturers of car MP3 connection kits and FM transmitters. Attracted to the segment by its low entry barriers, there are now at least 50 suppliers in China offering a range of car entertainment accessories with minimal product differentiation.

Given this, some companies are moving upmarket to cope with competition. Makers of FM transmitters are doing so by focusing what little there is of R&D on devices that incorporate the function rather than on stand-alone units.

Car TV receivers and Bluetooth handsfree kits, on the other hand, fared better than other categories, thanks to several alternatives for expansion.

Some suppliers are exploring nontraditional destinations such as Brazil and Russia to prop up business amid falling demand from Europe and North America.

Others are looking to venture into the domestic market, relying on the integration trend to drive sales in the in-vehicle entertainment segment.

China’s car electronic accessories industry has been on the decline since the second half of 2008 due to the global economic downturn.

According to the China branch of iSuppli, the 12 percent rise in revenue in 2008 was 23 percent lower than growth registered the year before. Further, projections for an increase in 2009 are marginal at about 6 percent.

In addition, iSuppli estimated that in 2008, only 40 percent of car electronic entertainment products were shipped abroad whereas the export share was previously at 60 percent.

	Model JCE058 is a GPS/GSM/Wi-Fi antenna from Jiashan Jinchang.

Many of the 80 to 100 manufacturers of car antennas in China export at least half of output to carmakers. One such supplier is Zhejiang province-based Jiashan Jinchang Electron Co. Ltd, which offers primarily GPS, GSM and Wi-Fi antennas.

Amid the strong OEM orientation, product enhancements are directed at convenience. Companies are developing units with light compact box housings and easy-to-install brackets. Makers are also improving water, dust and vibration resistance.

Models designed for GPS devices and radios are the main categories in China’s car antennas segment. All-in-one versions that support multiple applications are rapidly becoming a key classification.

The bulk of Jiashan Jinchang’s output consists of GPS models, although the company has introduced three-in-one designs for GPS/GSM/Wi-Fi and GPS/GSM/FM signals.

DVB-T, Wi-Fi and GSM/CDMA antennas are also available in China. Designs come with magnetic, attach-on-glass, window-clip or patch-type mounts and brackets.

The common connector options are F, IEC, SMA, MCX and MMCX.

With quotes falling 5 percent in the past half-year, entry-level single frequency models now go from $2 to $5. Midrange single or dual-function antennas are between $5 and $15. Three-in-one models are priced at about $15.

Growing in tandem with the in-vehicle entertainment electronics sector, the majority of China’s output of car TV mounts is offered domestically under OEM contracts.

Most designs come in dashboard and windshield types that are compatible with different car models. Headrest, roof and car vent versions are also available.

Products have a maximum load capacity of 1kg for portable gadgets such as GPS devices and media players, or 10kg for flip-down DVD players or headrest monitors 2 to 10in.

Plastic and cold-rolled steel are the common material options, but aluminum alloy and stainless steel are used for high-end mounts.

Materials, suitable applications and dimensions are the key factors that determine pricing and market positioning.

A basic plastic model for small devices is $1 to $2. Designs that can support 3 to 5kg go for between $2 and $5. These units are usually made of cold-rolled steel. Priced from $8 to $10, heavy-duty versions have a maximum load capacity of 10kg.

After falling 5 to 10 percent in the past six months, quotes are expected to remain stable in the coming half-year as suppliers spend less on materials.

The approximately 10 suppliers of car TV mounts in China are located in Guangdong, Fujian, Zhejiang and Jiangsu provinces. The majority carries out plastic injection, metal machining, painting, assembly and QC in-house. Companies also offer mounts for other types of in-car and home electronic devices, and A/V accessories.

Maturing technology and decreasing chipset costs are driving growth in China’s Bluetooth handsfree kits segment.

Current designs support recording, voice dial and full-duplex communication. Many upmarket models have an LCD or a touchscreen monitor that displays the caller’s number and volume and battery levels.

Priced between $10 and $20, some entry-level units adopt Bluetooth 1.1 or 1.2, although kits supporting Bluetooth 2.0 are now mainstream.

High-end models employ Bluetooth 2.1+EDR, which has an enhanced 2.0-channel quality output and echo and noise cancellation. They range from $20 to $30.

Integrated devices that combine Bluetooth kits with car DVD players or rearview systems exceed $50.

In-vehicle applications of the wireless technology will continue to expand as Bluetooth support and iPod connectivity become standard in upcoming automobile models.

Moreover, Bluetooth is being integrated into a growing number of car entertainment and navigational systems such as DVD and MP3 players and GPS devices.

Concerns over high licensing costs are limiting plans of China suppliers to launch new Bluetooth-enabled products even though the Bluetooth Special Interest Group lowered certification fees in March 2008.

Adapter members, mostly small makers generating less than $3 million annually in revenue, pay $2,500 for two models. In contrast, the standard fee is $10,000 per product, excluding membership and logo usage fees.

China is home to more than 100 suppliers of Bluetooth car handsfree kits. Most have small or midsize operations with fewer than 500 personnel.

SMT is often subcontracted, but product assembly, programming, testing and QC are done in-house.

China-made car digital video broadcast receivers for terrestrial transmission run on 12 to 24VDC, have low-power consumption chips from Dibcom or Cheertek and are housed in metal for better cooling.

Models can work at 150 to 200kph, ensuring that car DVB-T receivers are compatible with varying conditions in the vehicle, although other specifications are similar to those of home-use versions.

Products have free-to-air receiving, MPEG-2 decoding, EPG, PIG, multilingual OSD and menu. Many provide program-management functions, including channel list editing, favorite program listing, last-channel memory and manual or auto-scan.

Quotes range from $25 to $50. Versions of the same specifications but conformant with Brazil’s SBTVD-ISDB-TB standard are priced 30 to 50 percent more.

DVB-T receivers are also available as stand-alone car set top boxes, most of which are designed for tourist buses that can accommodate two or more video connections. In addition, the feature can be integrated into car entertainment devices.

With exports driven primarily by OEM and ODM orders, China suppliers of car MP3 connection kits are conducting limited in-house R&D, particularly for new designs. This has resulted in minimal product differentiation among the estimated 50 makers in the line.

Wired FM transmitters represent the sector’s largest category. Most models have a touchscreen monitor, multimedia decoding chip and flash memory. The latest releases feature USB connectivity and have a charger function, remote controls and adjustable cradles.

Prices range from $2 to $5 for basic designs and could reach $10 for versions with a built-in audio decoding feature.

Numbering between 40 and 50, suppliers of car electronic accessories in Taiwan are directing product development efforts at usability and visual appearance.

For car GPS antennas, makers are improving fl eet management and car security capability.

Convenience gets a boost via the shark fi n construction, which has become a popular choice in terms of form factor. The latest releases can support GPS, GSM, CDMA, AM and FM radio frequencies and Wi-Fi communication.

Taiwan’s range of car antennas also includes models for GSM mobile phones and DVB-T receivers. The former is already a mature line, consisting of dual- and tri-band versions.

Production of DVB-T antennas, on the other hand, is currently limited due to the small size of the market and various laws prohibiting drivers from simultaneously driving and watching TV.

Suppliers, however, are keeping developments in the line active as digital TV reception grows in popularity.

Taiwan-made car antennas support CDMA and UMTS transmission and automatic vehicle location. The selection also includes patch-type designs. Tenon-bracket and magnetic mounting are available.

Prices range from $3 to $16 depending on functions and the mechanical parts used. GSM or GPS models go for between $7 and $10, while versions that support both are about $15. Brackets are from $3 to $10.

One supplier responding to the trend for cosmetic improvements in in-car chargers is Infi nia Electronics Co. Ltd DG. The manufacturer used the same type of miniature components common in laptops in its OPT-522 Razor Power Car Charger model, which is smaller than a pack of gum. The product has an auto-trip resettable fuse and protection against output short circuit and maximum output limit.

Car chargers from Taiwan are priced between $2 and $4.

The selection of car A/V accessories in the island is expanding to include iPod battery charging cables, FM transmitters for MP3 playback and Bluetooth handsfree kits.

Geared usually toward entertainment, security, safety, navigation or communication, the integration and miniaturization trends continue to dominate car electronic accessories in Hong Kong.

In the in-car entertainment sector, a growing number of devices are capable of supporting various portable gadgets, including iPods, mobile phones and handheld games. FM transmitters and Bluetooth audio kits enable the wireless delivery of music files to the car’s stereo system.

GPS units are another active segment in the industry. Navigation devices are available in stand-alone versions or integrated with other functions such as a DVD player, rearview mirror or tire pressure monitoring system.

Hong Kong’s selection of electronic safety products has also been expanding in recent years as suppliers ramp up production of parking sensors and TPMS.

Examples of the latter include a model from Hong Kong Lionax International Business Development Ltd that is designed for DIY installation.

Hong Kong is home to more than 100 suppliers of car electronic accessories, including 20 that focus on in-car communication devices.

Caron Autosound Ltd is one such company. The number of wired and Bluetooth gadgets making up its selection exceeds 12.

OEM- and ODM-oriented production for resellers and aftermarket distributors continues to be the mainstream, although some makers promote in-house brands. A few manufacturers, including those that offer special-fit GPS navigation systems and TPMS, cater to vehicle assemblers.

In addition, Hong Kong is home to second-source suppliers specializing in marketing and customer support.