Faced with the grim situation of the market, it is urgent for the auto industry-related enterprises to explore new growth points and make good preparations for the next competition. Vehicle information entertainment system may inject some vitality in the auto industry foir its growth.

In 2008, the rapid growth ring of China's auto market is gradually fading, although production and sales have both exceeded 5 million in the first half of 2008, an increase of 18.52 percent and 16.71 percent of the high-speed situation, the growth rate has been down 5.65 percent and 4.78 percent.

Throughout the second half of 2008, all kinds of high cost, high energy prices, tightening the money supply, decreased consumption and other factors will continue to deepen the industry's decline, which make China's auto enterprises become more difficult. Facing this kind of market environment, it is urgent for the auto industry-related enterprises to explore new growth points and make good preparations for the next competition. We believe that vehicle information entertainment system may inject some vitality in the auto industry foir its growth.

Car audio application is mature; car TV prospect is good
Car information entertainment system is one of the most important application for China's automotive electronics. The data from iSuppli Market Research Company shows that in 2007 the global automotive entertainment information products' revenue reached 36.3 billion U.S. dollars, of which China accounted for 21 percent. Car information entertainment products include: car audio, MP3, MP4 (PMP), radio (car radio), car theater, onboard computer, automotive television, car navigation and communications.

In the China's car audio and video entertainment area, car audio is the most mature application in the current market; in 2007 China's car audio sales (factory fit + aftermarket) has nearly 10 million sets, car stereos has been basically achieved CD mode, DVD audio is also rising.
 
However, the Chinese car navigation, PMP (portable media players), automotive television, and other information entertainment system products are still in the initial or developing stages, the back seat with car DVD theater is only now the exclusive product for luxury car. In these products, future development of automotive television is more worthy of looking forward to.

Car TV is a kind of important terminals of ground digital TV, also its unique application product. Cable Digital TV can not support the mobile, and it is also difficult to watch satellite digital TV in high-speed car, while digital TV standard for mobile TV is not suitable for large screen to watch in the car. From the operational demands, automotive TV needs to define at least the broadcasting programmes, and receiving chip to support high-speed mobile reception.

Business model is the key for industrial chain start
From China's ground mobile TV program started at the beginning of 2002, so far, more than 40 cities have established the ground mobile digital television broadcasting system. These cities mainly use European DVB-T standard and DMB-T plan. When they start the mobile TV project, they have signed an important agreement with system provider that if the standard can not become a national standard, the system provider must be free to replace equipment, to make the provided equipment be converted to meet the national standard.