According to recent findings from Strategy Analytics, the Infotainment & Telematics market in China is set to receive a boost thanks to the growing demand from the Chinese middle-class. The Strategy Analytics (News - Alert) report however warns that OEMs and tier suppliers need to be very discreet as this market is highly dynamic and complicated.

According to the report, “China Infotainment & Telematics Market Drivers,” some foreign OEMs and tier suppliers have failed to understand cultural diversity in China while other have used this understanding to ensure better market segmentation.

“China is a vibrant market, even though domestic consumer demand is currently skewed toward low-cost vehicles and vehicle solutions. However, since domestic demand for higher specification entertainment and telematics systems is growing rapidly, the export market is ready to takeoff,” noted Richard Robinson, Director of the Strategy Analytics Automotive Multimedia and Communications Practice.

John Canali, Analyst with Strategy Analytics, adds, “Vehicle OEMs must recognize the great diversity of a billion Chinese consumers coming from varying markets. Each distinct infotainment feature influences consumer demand.” Canali continues, “It is important for external OEMs and tier suppliers to get to know the many different pictures of China, and to use them as strategic signposts for identifying their own value-add.”

TMCnet recently reported that OEMs are jacking up their offerings of vehicle telematics services and vehicle-device connectivity solutions.