Chinese auto makers are struggling in the domestic market against popular foreign brands. In the first two months of this year, market share for domestic brands was 23%, down from around 30% in the year-earlier period. In an effort to boost their appeal, some are increasing their emphasis on offering information and entertainment in their cars via in-car screens and connections to gadgets, according to Tim Lau, Broadcom’s associate product director for automotive Ethernet.

Chip companies such as Broadcom hope to supply the auto makers with the processors that enable such new functionalities.

A group of more than 200 auto makers and components suppliers is collaborating with Broadcom to develop standardized broad-reach Ethernet for the auto industry. In recent months, China’s FAW Group and Pan Asia Technical Automotive Center, a joint venture between SAIC Motor and General Motors, joined. Mr. Lau said many more Chinese car makers have expressed an interest in participating.

China offers “huge opportunities” as local car brands such as Geely, BYD, Chery and Great Wall Motor look to set themselves apart through technology, Mr. Lau said.

Other technology providers such as Apple are also eyeing opportunities presented by connected cars. Apple recently announced it was working with Ferrari and Volvo to develop an on-board operating system.

Also pushing the trend has been China’s bid to quickly expand its new fourth-generation mobile network, something Mr. McGregor said could “enable a lot of these connected cars and the content that goes with them.”

Source:China RealTime