Car CD players

	The HS-C1133 model from China’s Shanghai Hangsheng supports AM/FM PLL tuning, RDS and 24 preset stations.

Enhanced functionality and a solid price-to-performance ratio have enabled China-made car CD players to retain a significant share of the market for in-vehicle audio products. This comes amid rapid technological developments that have yielded advanced devices such as car DVD and MP3 players.

Suppliers are keeping the line active by staying on top of the latest trends. Recent releases, for example, are equipped with decoders that enable users to access MP3 or WMA music files from an external storage device through a USB port or card slot. MP3 and WMA playback are becoming standard in new cars.

Models also have a range of music-management functions, including fast music search, file directory display, and ID3 tag display for title, artist and album. They also have repeat and random play, and multiple preset EQs.

In addition, companies are working on their products’ capability to connect to other digital and mobile gadgets such as iPods and iPhones, and satellite and HD radios.

Many car CD players feature a Bluetooth module compatible with A2DP and AVRCP, both of which support the mobile handsfree profile and stereo audio transmission and playback.

Aside from the traditional AM/FM radio, digital technologies such as RDS and DAB are available. Most of Shanghai Hangsheng Industry Co. Ltd’s Europe-bound products, for example, are RDS-ready.

Some tier 1 suppliers, meanwhile, are developing multidisc players based on the 2-DIN design for high-end car models. The playback mechanism can hold three to 10 discs and operates with an automatic CD loader.

Improvements geared toward safety are also in vogue, with current models supporting shock protection, high temperature and stable power supply. Most provide mechanical and electronic antishock up to 90 seconds, a memory buffer for MP3 files and a dust-resistant design.

Makers are using high-temperature laser heads, and metal housings and cooling systems to prevent overheating.

Customization is also driving product development, with suppliers focusing on how to adapt housing designs, peripheral interfaces and value-added functions to customers’ specifications. They are also improving ODM services to be able to offer customized models within a shorter period.

Other than these enhancements, solid OEM business is helping to secure the line’s foothold in car audio products. This is because more than 90 percent of new vehicles are pre-installed with CD players. A small percentage of the line is exported as aftermarket units to South America and the Middle East.

Models with basic functions are at the entry level. They are usually 1-DIN units with a single CD mechanism and an AM/FM radio. No screen or backlit display is added, but it has a simple clock, an equalizer, volume setting and mute button. The models are pre-installed in low-priced cars.

Prices vary according to the materials used, add-on functions and target markets. Quotes of factory-installed players are higher than aftermarket models because of the former’s stricter requirements in design, raw materials and testing.

Models aimed for pre-installation are pegged at $50 to $70, which is about $20 higher than their aftermarket counterparts. Bluetooth capability adds $15 to the price, iPod function $3 to $5 excluding license, and RDS $30. The more-advanced versions with multidisc players can reach $100 per unit.

Suppliers do not expect dramatic changes in prices in coming months.
New hosts imperil CD line
Two supplier groups take niche markets

	Model BL-C984 from Shenzhen Baoling of China plays MP3 and WMA files, and has USB interface and steering wheel control.

Boasting better performance and the latest functions, new in-vehicle audio products such as car DVD, MP3 and hard disk players are threatening the mainstream position of car CD players.

Headrest and in-dash DVD players have touchscreen TFT LCDs, Bluetooth and built-in GPS. Some are integrated in car PCs and support wireless Internet connection and navigation.

Recent releases of car MP3 devices come with an FM tuner or transmitter, USB interface and memory card slots. Onboard decoders enable direct access to external file sources.

The new generation of hard disk players is compatible with various formats and designed with ports for USB host and slave, LAN and HDMI.

Previously, the price difference between a 1-DIN CD and DVD player without monitor was about $10. Reductions in the quotes of DVD players, however, are thinning this gap, spurring the line’s rise in popularity in North America’s aftermarket.

Car MP3 and hard disk players, on the other hand, are gaining ground domestically.

	Huizhou Desay’s MC220 model from China is a flipdown detachable player with DSP sound effects and multicolor dot matrix LCD.

Companies falling under the first tier of the manufacturing pool offer factory-installed units and account for 70 percent of output. They include the local facilities of multinationals Pioneer, Panasonic, Kenwood, Alpine, Philips and Siemens and private enterprises Shanghai Hangsheng and Foryou General.

Shanghai Hangsheng, a supplier of car entertainment and safety products, has long-term partnerships with several local vehicle manufacturers. It exports 20 to 30 percent of its players, mainly to Europe and the Middle East. Among its major customers are Hyundai and GM. The company also caters to the aftermarket.

Tier 1 suppliers have a long history of in-car audio manufacture, having been in the business since the time of cassette players and radios, and exhibit strong OEM/ODM capability. Most carry licenses and quality system certificates related specifically to the automotive industry.

Shenzhen Baoling Electronics Co. Ltd was established in 1984 and maintains long-term relationships with more than 30 car companies. Ninety percent of its output is consumed by the domestic market, particularly FAW-VW, Dongfeng-Citroen, Nanjing Fiat, Geely, Southeast Auto. Its export business has just begun in Chile, South Africa, Iran, Oman, Australia and New Zealand. The company has 16 production lines and an annual capacity of 1 million units.

Shenzhen Jingwah Multimedia Technology Co. Ltd, listed as one of China’s top 100 electronic enterprises, has also been in the industry for more than 20 years. Most of its products are sold to local car companies, including Geely, Shanghai Maple Auto and SAIC. The rest are exported to South America and the Middle East.

Privately owned companies specializing in aftermarket designs represent the second tier. Car CD players from such makers are usually priced lower than those from tier 1 enterprises, and product selections also include in-vehicle GPS devices and DVD and MP3 players.

Huizhou Desay Auto Electronics Co. Ltd targets the aftermarket in South America, the Middle East and Europe. It employs a 40-man R&D team that releases up to two new models per month. Its monthly output of car CD players reaches 25,000 units.

As regards solutions and components, tier 1 operations are capable of designing their own while smaller suppliers source from third-party providers. Sanyo and Shinwa laser heads are used in models that target higher price-to-performance ratio, asare components from Sony, Panasonic and Tanashin.