Car Reviews

The development process of Car audio and video industry

Car audio and video market is an important part of auto aftermarket, specifically the auto parts market. There are car products like Sun Visor Monitors and car DVD players. The automobile industry gains rapid development after 2002 or 2003. For China household consumption, the car has become the travel tool. Now the car audio and video industry has entered the vigorous stage.

There are super brands in China car audio market. First, it’s the Japanese brads which oppupy 60% market share. Pioneer, Panasonic, Alpine, JVC, Kenwood and Nikkei entered Chinese market one after another. They set up factories or assemble SKD in China. Among them, Pioneer and Alpine are the professional car audio brands.

There are also strong brands of European or US. In the early time, they are mainly the Philips, Siemens VDO, Leffe, KICKER and MA. And now the top world brands like US McIntosh also enters into China.

Most of the domestic car audio enterprises are mainly specialized in the main engine manufacturing. More than 90% of them belong to OEM enterprises which enhance the status with cost advantage and large capital operation. In 2005, the “Haobangshou” first suggested the “exclusive use for private car” car audio concept. It greatly raises the status of domestic brands in China. But it still can’t change the powerful position of foreign brands.

The audio and video devices are the earliest electronics applied in cars. Its development is closely related to the development of car industry. The development of our car industry boosts the rapid development of car audio and video.

On one hand, the auto audio market develops rapidly. In addition, with the transferring and expanding of global car audio industry, China is becoming the main production base and recipient place of global car audio. The world car audio base has experienced two great transferring since 1980s. First, it’s transferred from Japan to Korea and China Taiwan. Then it’s transferring to China mainland. Now almost all the world renowned audio brands have set manufacturing enterprises and representative office in China. At the beginning of the century, auto audio experienced the second expansion. The ever household audio brands begin to enter into the field.

There are two main parts in auto audio market. One is the factory equipped market. The car manufacturers OEM some brand as the standard set of its audio. The other one is the retail equipped market. It’s the consumers-oriented end retail market. It mainy refers to the Mod Garage.

In the domestic auto audio and video market, the aftermarket scale is comparatively small. The OEM market occupies the most of market share. The annual car production and sales volume has reached more than 4 million sets. Thus, the demand of the auto audio OEM is about 5 million sets.

As the threshhold of European and Japanese brands is high, it’s hard for the Chinese auto audio enterprises to enter the audio market. Most of the enterprises wil choose the European and US or Japanese brands audio as the standard configuration. For example, the Volkswagen chooses the Siemens VDO as main engine of its car audio.

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