November 22, 2019

Because of many different reasons, Japanese carmakers are lagging behind big men from the US and Europe in the race for car technology. In the race for car-connected services. For example, ordering a cup of coffee right on the car’s touch screen – Toyota and Nissan risk being slowed down by the cause of their home market.

Unlike the US and European countries, the technology of direct connection on cars is not favored by Japanese consumers. According to SBD Automotive statistics, only 10% of vehicles are circulating on Japanese routes integrating this feature. This is an unimpressive figure compared to 49% in the US, 31% in Europe and 20% in China.

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In the context of increasing demand for car connections, Japanese cars are at a disadvantage, not even at the domestic market, where they have a large market share.

Meanwhile, competitors are increasingly pushing this feature, even General Motors sees it as a source of their own revenue. Because in China, the United States and European countries, consumers are very interested in making purchases and paying quickly on their cars.

Talking about this, Masanori Matsubara – senior analyst at IHS Markit said: “The Japanese car industry is facing great risks. They have to compete globally with rivals from the US and Germany, the pioneering brands of car service platforms.

Instead of selecting integrated services on the dashboard, Japanese people prefer to connect the smartphone to the car’s system, such as listening to music online.

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This mechanism requires data will have to go through smartphone service providers, typically Apple or Google. That will take away a great opportunity for independent automakers to grow in this area. Because of McKinsey & Co’s estimates, direct car services can create a market worth up to 750 billion USD by 2030.

SBD Automotive center predicts two-thirds of cars in the US and Europe will use direct connections by 2020. Meanwhile, this rate in the Japanese market is not yet full. 1/3, according to analysts’ predictions.

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