The predict results of authority organ show that: the average content of in-vehicle electronic equipment will reach up to 35% by 2010 from the existing 22%. According to statistics, in some luxury cars, the number of using single-chip micro-computer has reached 48, the cost of electronic products accounted for more than 50 percent of the whole. In the near future, small and medium-sized cars will also be faced with a ful electronic change. When electronic products become a major component of a vehicle costs, the times to subverse the auto industry will come.

Automotive electronics products are usually grouped into two categories: one is automotive electronic control devices, such as electronic fuel injection system, electronic power steering system, etc; as with the close relationship with performance of motor vehicles, they are considered as the future' s indispensable automotive electronics products; the other is onboard electronic devices, including car computers, navigation system, automotive communication system, Internet equipment, etc, which has nothing to do with the performance of motor vehicles, but as given added value, they are also considered as the future' s development direction of the automotive electronics industry.

Insiders believe that at present the automotive electronic control devices are still the largest profit sources of automotive electronic equipment. As of early implementation of technology introduction strategy in China's automobile industry, the supporting right of auto electronic products has been controled in foreign hands. Some joint ventures over-exaggerate the technology of introduced models, and use the in-vehicle electronic equipment which is common overseas to create the so-called "technical surplus" illusion. The mature technology on automotive electronics of foreign manufacturers, are reluctant to transfer but would prefer to technology export to earn excess profits by separately sold to China's automotive joint venture.

Without core technology and enough scale of research and development, China's auto electronic enterprises can only produce some low value-added products. From the beginning of the 1990s to start car navigation system research, now more than 200 domestic enterprises are doing similar products, but only a dozen manufacturers really promote products to market. More importantly, as the automobile joint venture' s purchase right of electronic equipment is in the control of foreign hands, China's emerging automotive electronic parts makers have no arena, and a number of manufacturers have begun to shift to production of automotive electronics devices not so associated with automotive technology. However, foreign automotive electronics firms have already discovered this virgin territory, and treat it as part of the future car value-added, which is very difficult for domestic manufacturers to have a share.

Take onboard computer accounting for much of overall electronic devices cost as an example, at present the major global car computer manufacturers are Delphi, Bosch, Siemens VDO and Electrical Company. The former two are internationally renowned auto parts company, whose products have large share in complementary markets and parts market, and Delphi has displayed its rear seat entertainment system in Shanghai auto show, and attempts to populize its audio-visual products in all major luxury car brands. The latter two are more specialized automotive electronics manufacturers, and Siemens VDO even moves its R & D center to China. It is understood that Siemens VDO Industrial Park to be completed in June this year, will mainly research and develop the automotive information entertainment system, and then will reach a large production scale with 2.3 million units annual output of automotive products, sales of 1.5 billion yuan.