The Internet of Things (IoT) In China’s Automotive Industry

With the vigorous encouragement of new energy automotive by China government. It’s normal that new companies are developing the smart car(mainly developing the electric car) in a highly growth, including Smart Car&Better Driving, Alibaba and SAIC Motor (one of China’s biggest car makers) ,LeTV Le Supercar, Baidu Car etc. These companies with Internet of Things(IoT) chose the best time to enter into the internet automotive industry.

Most automotive maker in China have a great inventory since the project of “shi er wu”. It’s said that the output of China’s top ten auto groups in the end of 2015 has arrived around 32.5 million cars in total (SAIC, FAW, Dongfeng, Chang’an, Beijing Auto, Guangzhou Auto, Chery, BYD, Brilliance, Geely, and JAC and Great Wall Moto). So getting rid of inventory is the key for auto manufacturer in china, but this is also the good opportunities for other enterprises.

Selling a smart car with IoT could be like selling software, we can make more profits rely on after service. There are a group data made by foreign media, auto manufacturer only get 20% profit in the full time of one car, and the rest profit is taken by insurance company, gas station and other aftermarket. In the other word, there is only a little profit during selling parts.

For the smart car, the internet of things(IoT) could make a connected car. And updating constantly, getting though people’s daily life, such as eating, living, working and smart family, smart wearing. In the future, smart car could make personal driving setting into cloud, then you could share your own driving habits to another new car as same as computer. For the selling part, after service is more important than car itself.

In general, smart car with new thinking is the result of operational innovation, and the Internet is a user-centric car in the final analysis, resources and gradually formed reorganization. We’d glad to see the very special style from internet car industry.