Upgrades boost market penetration

	Shenzhen Viota's GPS system integrates navigation and tracking functions via GSM and GPRS connections.

China suppliers of car GPS devices are identifying business prospects and product development as top strategic priorities in their return bid to pre-2008 profit levels. Recent initiatives are focused on aligning available technologies to current usage.

A common effort among makers is to concentrate on open telematics architecture that subscribes to various information and entertainment broadcasts. The popularity of personal navigation and consumer applications that let users get local search information is likely to boost demand for the line.

Already, companies are phasing out conventional single-function models and introducing more designs that support the Traffic Message Channel. TMC allows drivers to access realtime travel advisories on road conditions, weather, parking availability, and oil and gas prices.

Another significant source of on-road data is the enterprise-level location-based service that boasts crossnetwork interoperability. Its growing acceptance in major markets is prompting China makers to incorporate GPRS and GSM modules, which grant access to the Internet. LBS permits users to remain in constant interaction within preferred websites.

In both TMC and LBS, the data is transferred via FM-RDS, DAB, GPRS or other types of digital stream. The in-car GPS device then decodes the signal and matches the received information with the installed maps. For this purpose, G-Antetech Industrial Co. Ltd offers TMC receivers with 76 to 106MHz frequency, 75ohm impedance and 2:1VSWR. GPS repeaters that resolve interference problems caused by certain car windows are also available from the supplier. Such models are basically satellite signal tuners that can be installed outside the vehicle.

The latest software is also helping improve the line. For instance, 3D mapping is fast becoming prevalent as critical hardware gets more advanced. To make map processing easy and smooth, only chipsets 600MHz or above are used. The latest versions of the programs are compatible with A5 or Windows CE 6.0 platforms. Shenzhen Soling Industrial Co. Ltd and Shenzhen Viota Technology Co. Ltd have already released designs that can process digital maps.

The adoption of 3G mobile connectivity is also enabling more dynamic use of GPS devices, allowing instant and continuous updating of stored maps once connected to the Internet. Under this telecom standard, Shenzhen Meiligao Electronics Co. Ltd plans to develop remote-controlled video transmission. It also intends to introduce the world’s smallest GPS tracker later this year.

Other enhancements in the line include the installation of photosensors that help adjust the contrast of built-in screens to the car’s interior illumination. The feature keeps the monitor’s intensity at a tolerable level that does not impair the driver’s vision. This simple innovation is already available in certain models and is expected to become predominant.

In terms of aesthetics, several suppliers, particularly midsize ones, are creating in-car GPS navigation systems with specific vehicle brands and models in mind. New models match popular types such as Toyota, Honda, Volkswagen, Ford and Mercedes-Benz. Forever Max Technology Co. Ltd, for instance, offers products suitable for the Audi A4, Mercedes-Benz B200 and R300, Citröen C4, Peugeot 307, Ford Focus, and Honda Accord, Civic and CR-V.

With these upgrades, China businesses hope to improve sales abroad. In 2009, the country’s export sales fell 21 percent year on year to about $990 million. Further, combined deliveries to the EU and the US declined by more than 50 percent.

In coming months, companies are optimistic of achieving target growth levels on the strength of a recovering global economy. This year, output will be evenly split between the overseas and the domestic markets. The latter, in particular, has a developing automotive segment.

Abroad, the aftermarket is expected to account for more than 80 percent of orders.

Demand in emerging destinations, in particular, is growing. For instance, sales to Russia increased to 238,000 units in 2009 or by approximately 80 percent year on year.

The US, the Netherlands, Japan, France and Germany, nonetheless, remain the major markets for upscale products. Low-end models, which comprise a minor part of shipments, are commonly sent to Asia and Africa.

Products & prices
Production hubs

China has an average yield of 35 million car GPS devices annually. Portable receivers and in-dash navigation systems account for 57 and 29 percent of output. Trackers comprise the rest.

Portable GPS receivers run on batteries and can be recharged or powered via the car’s cigarette lighter socket. Typical designs have multiple functions and a built-in LCD. These can be mounted on the dashboard or windshield with brackets and suction cups.

In-dash systems with integrated GPS navigation come in custom sizes or DIN configurations that fit standard dashboards. Most models support common audio, video and image formats. Many have Bluetooth and FM receivers while some run on Windows embedded systems.

Upscale versions are built with FM transmitters, rearview parking systems, TPMS, TV receivers, WiFi modules, LAN ports, speed sensors and alarms, and LBS and TMC tuners.

Trackers are equipped with GPS and mobile communication modules. These are mainly used for vehicle monitoring and fleet management. They work by sending geographical coordinates to a terminal server on the Internet or to a mobile phone.

Prices for all designs are forecast to continue their downward trend. Rates fell 10 percent in the past six months and are projected to slide 5 to 10 percent more in the latter half of 2010.

One reason for the decline in quotes is the growing availability of GPS chipsets from China suppliers. At present, there are five to 10 companies that can produce applicable ICs, which cost half as much as imported counterparts. These components have 2.5m horizontal location precision and 0.01m/s horizontal speed precision. They can track 48 channels and capture 32 more at -145dBm. The tracking sensitivity exceeds -159dBm and the time-to-first-fix is less than 30 seconds.

Makers of car GPS in China are mainly based in the provinces of Guangdong, Fujian and Zhejiang.

More than 300 enterprises are spread among Guangdong’s major sourcing cities such as Shenzhen, Dongguan and Guangzhou. The last boasts advanced manufacturing technologies for electronic devices.

Guangdong has an annual output of about 25 million units, of which 60 percent are exported. Production there emphasizes GPS navigation system assemblies, GPS trackers and antennas. Designs target the upper market segments.

With an established supply chain for telecom products, Fujian’s 50 or so makers concentrate on portable car GPS receivers and monitors. The mostly small and midsize companies in this province are located in Zhangzhou and Xiamen. They also manufacture other in-car electronic devices such as DVD and MP4 players, and mini PCs. Car navigation systems from the area are aimed at the low-end and midrange segments.

Fewer than 50 small suppliers are based in Zhejiang. Many of these privately owned businesses outsource components for car GPS navigation systems and portable GPS receivers from nearby factories, and conduct in-house assembly.

The province ships 5 million devices, half of which are sent to the Middle East, Southeast Asia and Africa. Most exports target the low end and midrange.