1. Car Navigation Market
in South East Asia
by
Vivek Vaidya
Vice President - Asia Pacific Automotive & Transportation
29th Nov, 2011
Automotive Practice

2. Agenda
I Overview Southeast Asian Automotive Market
II Drivers & Restraints
III Navigation Market Trends
IV Market Forecasts and Future Outlook
V New Market Trends
VI Key Conclusions and Opportunities
2

3. Overview
ASEAN is home to more than 2.5 million light vehicle sales in 2010
29%
29%
28%
28%
31% 28% Market 29%
Overview: Light Vehicle Sales, 2007 - 2015
4%
4%
4%
25% 29%
27% 5%
28%
4% 27% 5% 28%
6% 28% 4% 29%
31% 28% 5% 4% 29%
5% 4% 30%
25% 30%
31% 31%
27% 5%
31%
4% 27% 5%
32% 28%
6% 29%
5% 29%
5% 30% 29%
30% 29%
31% 31% 39%
39% 31%
34% 37% 37% 38% 38%
32% 36% 36% 28%
28% 4%
31% 28% 4%
25% 39% 4%
39% 34% 37% 37% 38% 38% 27% 5%
36% 36%
4% 27% 5% 28%
6% 29%
5% 29%
5% 30%
30%
31% 31%
31%
32%
39%
Brunei Burma (Myanmar) 39% 34% 37% 37% 38% 38%
Indonesia 36% 36%
Cambodia Laos Philippines
Vietnam Thailand Singapore
Malaysia
• The light vehicle market in in South East Asia 4 countries (Thailand, Malaysia, Singapore and Indonesia)
accounted for more than 1.5 million vehicles in 2010
• Thailand is the largest light vehicle market in the region which account for nearly 40 percent
3

4. Overview
Thailand is the largest light vehicle market in the region which account
18%
18%
18%
for nearly 40 percent
24%
18%
24%
18%
25% 18%
19%
Market Overview: Light Vehicle Sales by Market Overview: Market Share of Top
18%
18%
24%
25%
24%
18% Segments, 2007 - 2015 Vehicle Manufacturers, 2010
25%
19%
19% 18%
21% 21% 18%
24% Continental brands such as Mercedes-Benz, BMW and
21% 24%
25% 18%
25% 19%
Audi holds less than 1 percent of the market
25%
19% 21%
21% 21% 24%
21%
19% 24% 18%
25% 18%
% 25% Others, 28%
25% 18% Toyota, 32%
19%
% 26% 21% 21%
21% 21%
20% 19%
20% 24%
19% 24% Nissan, 6%
27% 25%
20% 25%
21% 21%25% Proton, 7% Honda, 10%
21%26% 21%
20% 22% 26% 26%
% 20% Isuzu, 9% Perodua, 8%
21% 21%
21% 21%
17% 18% 20%
18% 20%
• Toyota holds the largest market share in South East Asia 4 countries with more then 30 percent of the
market share, followed by Honda, Perodua, Isuzu, Proton and Nissan
• MPV and Pickup segment will remain major segment which account for nearly half of the market
because of popularity in Thailand and Indonesia, although A and B segment will grow gradually
4

5. Navigation Market Characteristics by Country
• OEMs has offered navigation systems for their • Proton is currently offering PNDs and will change
passenger cars but recently introduced for pick up to embedded type, and even plan to start
trucks telematics services in 2015.
• Japanese OEMs fit navigation systems in • While, another local OEM, Perodua is currently
production line in Thailand, while continental offering PNDs for limited models but no intention
OEMs import CBU vehicles with navigation. to increase models with navigation.
Thailand Malaysia
• Singapore can afford more embedded navigation • Although Indonesia has large population and land,
systems than other countries, but necessity of navigation systems are still very expensive for
navigation systems are very low because the land most of Indonesian.
is small and traffic systems are well established. • Richer people who can afford navigation systems
• The market is too small for OEMs to develop do not need navigation systems because they have
navigation systems for Singapore. drivers.
Singapore Indonesia
5

6. Thailand Navigation Market: PNDs dominate the car navigation market
with nearly 96 percent of the market due to reasonable price and plenty of choices
• PNDs dominate the car Market Size by Stage: Frost & Sullivan Scenario
navigation market with nearly (Thailand), 2007-2015 779,000
95 percent of the market due 652,400
to reasonable price and plenty
544,500
of choices
418,800
• Embedded type is used by 322,300
247,800
OEMs but will not penetrate 176,700
114,700
into the market due to high 74,400
price and availability in the
aftermarket
Embedded
4.0%
• Currently mainly luxury and larger vehicles in D segment and
above offer navigation systems but it will shift to smaller
PND
96.0% segment such as C and B segment in the future
• Garmin and MIO are major PND players in Thailand which
account for more than 70 percent of the market share
6

7. Malaysia Navigation Market: Aftermarket is still major contributor,
accounting for 90 percent of the market
• The navigation market in Malaysia Market Size by Stage: Frost & Sullivan Scenario
has been growing very fast in the (Malaysia), 2007-2015
past 2 years, although the market is 781,100
still small.
• Currently the car navigation market 524,800
is dominated by PND and embedded
353,300
type is not favored by national
automakers due to the complexity of 238,100
155,800
the system integration on their 104,400
60,400 69,600
current product and higher cost 24,400
Embedded
1.1%
• Garmin and Papago are major PND players in Malaysia
PND
98.9% • Mobile phone map is a threat for PNDs as the functions of
mobile phone map have improved dramatically in the last
few years and the screen size is getting bigger which is easier
to see
7

8. Singapore Navigation Market: Embedded type is available as OE
fitment but not available in the aftermarket
• Car navigation systems are not Market Size by Stage: Frost & Sullivan Scenario
indispensable in Singapore (Singapore), 2007-2015
because the land is small, road
48,000 48,000 46,800
network is relatively simple and 45,700
42,200
busy traffic time is predictable. 38,000
31,200
• However, car navigation
18,400
systems , especially PND type,
are getting popular because of
5,200
reasonable price, convenience
and multi-functions
Embedded
5.3%
• Garmin dominates the PND market in Singapore with more
PND
than half of the market share in the aftermarket.
94.7%
• Embedded type may penetrate into the market if more
attractive telematics services such as maintenance reminder,
breakdown calls, emergency calls are available
8

9. Indonesia Navigation Market: OE and dealer fitting is not common and
yet to see signs to become popular
• The car navigation market in Market Size by Stage: Frost & Sullivan Scenario
Indonesia is currently very (Indonesia), 2007-2015
small but will grow very fast 174,600
toward 2015 due to increasing 158,400
143,800
public awareness and
affordability. 110,600
79,100
• The car navigation market is
52,900
dominated by PND and
37,700
embedded type may not able 18,100
12,200
to penetrate further into the
market due to high price.
Embedded
0.5%
• Garmin and Mio are the major market players in Indonesia
PND
which have about 90 percent of the market share.
99.5%
• Garmin holds about half of the market share, while MIO has
about 40 percent of the market share.
9

10. Generation Y: Goods and Services Catered to Values, Beliefs, Interest and
Lifestyle
Personalization Techno Savvy and Civic and Demanding and
and Connected 24 X 7 Environmentally Impatient – “Fast
Individualization Friendly and the Furious”
Gaming Gizmos
Personalized Search and Instant Text Messaging
Eco- Transport
News
Smart Phones
Social Networking Profiles
Bag-For-Life (Paper Bags
Instead of Plastic) Instant Chat
Facebook-on-the Move
Personalized Products
Paperless Banking Speed Oriented
Gaming (Car Racing)
Microblogs
M65B-18 10

11. Smartphones are integral part of life
Queue for iphone
It is very common for people to take picture
of food they are about to eat and post it on
Facebook…before they finish the dish they
get hundreds of likes
Cell Phones are commonly used while
travelling, for voice as well as data service.
Unlike Japan it is not considered rude to
make a call while travelling
11

12. Embedded systems in Southeast asia are set to grow…but
Embedded Systems in South East Asia
250.00
200.00
150.00
100.00
50.00
-
2010 2011 2012 2013 2014 2015
Embedded
12

13. The volumes of PND would be significantly higher… but what is
more exciting is…
Embedded Vs PND growth
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
2010 2011 2012 2013 2014 2015
Embedded PND
13

14. Smart Phones are likely to outnumber PND and Embedded
systems in order of magnitude!
Smart Phones Vs PND Vs Embedded
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
-
2010 2011 2012 2013 2014 2015
Embedded PND Smart Phones
14

15. Southeast Asia shows one of the highest intentions to purchase
smartphones at global level
15

16. Built in Apps Already Exists like 911, Beamed-in and Brought-in are the ones in
focus Currently
Built-In Beamed-In
Built-In – Source Beamed-In – Source
of revenues are of revenues are App
from hardware Subscription fees
Features like eCall which are Features like Ford Service
and apps for OEMs and
built into the vehicle Delivery Network (FSDN) which
subscription for associated service
embedded telematics unit allows real time services to be
OEMs, hardware providers
e.g. Ford Sync 911, OnStar sent to user using his mobile
providers and e.g. Mercedes
ACN phone with data and Bluetooth
service providers Mbrace $280
subscription for 3
years service
Brought-In
Brought-In – Source of revenues Bringing in apps from
for OEMs are only through platforms like Apple App
interfaces for using Smartphone store through users
apps inside the car, e.g. Smart smartphone for use in
iPhone cradle, Ford Sync, etc vehicle through vehicle HMI,
e.g. Syncast in Ford Sync
16

17. Internet in the Car: From an automakers perspective Brought-In method the most
cost effective and way to bring internet radio into the car
Built - In Beamed - In
A dedicated SIM card built
into the vehicle
These are head-units which are USB Modem
installed when the vehicle is GM OnStar**
BMW Connected Drive
assembled. Connectivity is provided by tethering
consumer mobile phone or having a
modem in the car
Bluetooth is the primary method of data These are mobile phones used as a modem
transfer from the portable device to the or have a USB modem
car speakers
Brought - In Aftermarket
Ford SYNC Smart drive kit for ClarionMIND Pioneer in-dash unit
iphone + smart drive
app
These are aftermarket head-units that
provide access to internet with use of
These are portable devices such as mobile phone or music consumer mobile phone
players. The mobile phone network is used for connectivity
**OnStar has some safety features built in but a variety of media features are beamed in only on request Source: Frost & Sullivan
17

18. Southeast Asia has the potential to leapfrog the conventional
steps in development of navigation and telematics market
Brought - In
These are portable
devices such as
mobile phone or
music players. The
mobile phone
network is used for
Beamed - In connectivity
Built - In
Aftermarket
These are mobile
phones used as a
These are head-units which are modem or have a
installed when the vehicle is USB modem
assembled.
These are aftermarket head-units that
provide access to internet with use of
consumer mobile phone
18

19. Critical Development Points for Vehicle Centric and Consumer
Centric Apps
Hosted from Smartphone inside
Embedded car using tethered connectivity
Critical
Internet radio, Vehicle
information, breakdown
Emergency Assistance, Ecodriving, assistance, Social
Stolen vehicle tracking, Diagnostics networking, parking
usage-based insurance, , Internet information, dynamic POI
advanced diagnostics and radio, etc information, EV charge
breakdown assistance
spots location information,
EcoDriving, etc
Good to Have
Tethered
Built inside the car by OEMs
and tier 1 suppliers
19

20. Vehicle Manufacturer Developed Apps
OEMs are Currently working on API’s to Control Entertainment Apps on Smartphones through Vehicle
HMI and are Also Developing Dedicated Apps in many Areas
Vehicle
Telematics Entertainment Location Based Navigation
Information Others
Related Apps Apps Service Apps Related Apps
Apps
Toyota I Heart EV Apps – BMW
BMW Roadside Audi Car Toyota Park TomTom
Internet Radio Active E, Nissan
Assistance Monitor App Smart App Navigation App
App LEAF apps
Ford - Sync
Mercedes myChevrolet OnStar Mylink Bosch Zip Car – Car
Enabled
Mbrace App App App Navigation App Sharing App
Pandora
Ciao Fiat Trapster – Fauercia Smart
BMW Ford – Sync Toyota Smart G-
Smartphone Speed Camera Fit – Seat
Connected App Enabled Stitcher Book App
App App Related App
Viper Smart Green Apps –
Continental Dynolicius – BMW/Mini Mercedes Smart
Start Remote Green Meter
TPMS App Diagnostics App Connected App Drive App
App App
Source: Frost & Sullivan.
20

21. Conclusions and Opportunities
Implications
ASEAN Market is
mainly dominated
by PNDs with
slower growth for
Embedded
systems
A growing user base for mobile phone-
Market is still based Navigation and location based
nascent to many services is prompting interfacing these
evolving devices to vehicle display
technologies around
telematics and
infotainment
Mobile phones may become the preferred
navigation and connectivity devices for
Few major PND majority of the car users
manufacturers
dominate the market
however, Mobile phones
are a threat to PNDs
In-dash unit market may never take off in
Gen Y Influence very high in this region
future HMI designs and
infotainment concepts –
touch screen, voice
commands critical
requirements
Vehicle manufacturers and connectivity
service providers need to evolve a
different road map for these markets
Source: Frost & Sullivan
21

22. Appendix – Frost & Sullivan Research Content
22 22

23. Telematics, HMI, Connectivity and Navigation Related Existing and
Upcoming Consumer Research
2011 Apps, HMI and Telematics Voice of Consumer Study (In-progress)
US Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps, HMI
2011 Concepts and Telematics Services
2011 Apps, HMI and Telematics Voice of Consumer Study (In-progress)
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps,
2011 HMI Concepts and Telematics Services
2011 Comfort and Convenience VOC Study (In-progress)
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Multiple
2011 Comfort and Convenience Technologies during Different Driving Phases
2010 US Voice of Customer Study: Telematics & Infotainment and App-Store Applications
2010 Infotainment Voice of the Customer: European Consumers’ Attitudes, Perceptions, and
Willingness to Pay Regarding New Generation Infotainment, App Concepts, and HMI
2010 Solutions
European Consumers’ Desirability and Willingness to Pay for Connected Navigation,
2009 Location-Based Services and Features
Russian Consumers’ Desirability and Willingness to Pay for Connected Navigation, Location-
2009 Based Services and Features
Voice of Customer Study – Desirability and Willingness to Pay for Navigation Systems and
2008 Telematics Services (US)
2008 Consumer Desirability & Willingness to Pay for Navigation Systems and Features (Europe)
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Multiple
Forthcoming 2007 Comfort and Convenience Technologies
23

24. Telematics, HMI, Connectivity and Navigation Related Upcoming
Research – 2012
Strategic Analysis of the European Telematics Services Market - Focus on Emergency
2012 and Breakdown Assistance
Strategic Analysis of the European Telematics Services Market - Focus on Stolen
2012 Vehicle Tracking
Strategic Analysis of the North Telematics Services Market - Focus on Emergency,
2012 Breakdown and Vehicle Tracking Features
• Location-based
services Strategic Analysis of Tracking Legislation and its Impact on the Telematics Services
• GPS / Navigation 2012 Market in Brazil
systems
Strategic Analysis of ERA GLONASS Legislation and its Impact on the Telematics
• Infotainment systems
2012 Services Market in Russia
• Wireless
Communication / Strategic Update of the In-Car Audio Systems Market in North America - Including Focus
Bluetooth on Audio Systems, Amplifiers, Speakers, Aux-in Features, Sound Processing Software,
• CV Telematics 2012 etc
• RVD
eCall
Pedestrian
- Aftermarket
Navigation
Solution
letely
Parking
2012 Strategic Update of New Developments in the European Automotive HVAC Market
Information
oard
&
gation
Reservation
Variable message signs
Impact Assessment and New Developments in Smartphone Interface Technologies Such
2012 as Mirrorlink in the European and North American Automotive Market
Time
3G, GPRS. HSDPA, UMTS, WiFi Social
amic
Networking
ffic
Tools
mation
Mobile TV
Audio * Draft titles subject to change based on other customer feedback as well
& Video
Forthcoming
- DVB H
Downloading
24

25. Telematics, HMI, Connectivity and Navigation Related Existing and
Upcoming Research – 2010 and 2011
Key Trends and Forecasts of Navigation Systems and Telematics Services in China, India and
2011 Select APAC Markets
Key Trends and Forecasts of Navigation Systems and Telematics Services in North and Latin
2011 American Markets
Key Trends and Forecasts of Navigation Systems and Telematics Services in Western and Eastern
2011 European Markets including Russia
• Location-based Strategic Analysis of European and North American Automotive Human Machine Interface Market -
services 2011 Part 2 Display and Instrument Clusters
• GPS / Navigation Connectivity, App Stores and Cloud-based Delivery Platforms - Future of Connected Infotainment
systems 2011 and Telematics Market
• Infotainment systems
• Wireless Strategic Analysis of Global Automotive Market for IT Mobility Platforms
Communication / 2011 Billing and Smart Charging are Two Key Opportunity Areas in the EV Infrastructure Segment
Bluetooth Strategic Analysis of European and North American Automotive Human Machine Interface Market -
• CV Telematics 2011 Part 1 Steering Wheel Controls, Voice Interfaces and Multifunctional Switches
• RVD
Executive Analysis of European Consumers’ Awareness and Preferences for Usage of
eCall
Pedestrian
- Aftermarket
Navigation
Solution
Parking
2010 Smartphone Apps Inside and Outside Car
letely
Information
oard
gation
&
Reservation Strategic Analysis of the Impact of Smartphones and Apps on the European and North American
2010 Infotainment Market
Variable message signs
Time
amic
ffic
3G, GPRS. HSDPA, UMTS, WiFi Social
Networking
Tools
Strategic Analysis of the North American Market for Telematics-Enabled Usage-based Insurance
mation
Mobile TV
Audio
2010 Market
& Video
Forthcoming
- DVB H
Downloading
2010 Strategic Analysis of North American Embedded-Connected Hybrid Telematics Market
Existing 2010 Strategic Analysis of the European Market for Telematics -enabled Usage-based Insurance
2010 Automotive Telematics Application Stores – Will it Succeed like the Apple App Store Concept
25

26. Electrical, Electronics, Comfort and Convenience Related Existing
and Upcoming Research
2012 Strategic Update of the Automotive HVAC Market in Europe
Strategic Analysis of Automotive Electronics Market for Electric Vehicles in Europe and North
2012 America
Strategic Analysis of Automotive Interior and Exterior Lighting Systems Market in Europe and
2012 North America
2012 Strategic Analysis of Automotive Seating Systems in Europe and North America
2009 Strategic Analysis of the European Automotive Human Machine Interface Market
Executive Analysis of the Market for Solar Technology Applications in the European Automotive
• Lighting Systems 2009 Industry
• HVAC Systems 2009 Strategic Analysis of the North American Automotive Software Market
• Body Electronics
2008 European Automotive Original Equipment DAS, ESP, Passive Safety and Rain Sensors Market
• ECU’s
• Tire pressure 2008 Strategic Analysis of European Market for Electric Corner Modules
monitoring systems
2008 Strategic Analysis of the European Automotive Advanced Electronic Controller Market
• Aftermarket
Electronic 2008 Strategic Analysis of the European Automotive Exterior Lighting Market
Components 2008 Strategic Analysis of the European Automotive Interior Lighting Markets
2008 Strategic Analysis of Automotive Human Machine Interface Systems in North America
European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC)
Forthcoming 2007 Systems Markets
2007 European Automotive Original Equipment Position, Pressure and Temperature Sensors Market
2006 Analysis of European Automotive Wiring Harness and Connectors Markets
26