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New models integrate multimedia functions, tap GPS/GSM network support for car location tracking.
Veteran suppliers of car security products no longer just rely on automobile sales to boost profits. The car security market has become so competitive that active manufacturers have had to find new ways to entice buyers. Moreover, the supplier base in mainland China has been infiltrated by speculators driven by profit rather than product quality or innovation.
Meanwhile, manufacturers in Taiwan must pit their products against low-cost units offered by their equally aggressive mainland counterparts.
Both regions are now developing integrated car security systems to survive growing competition. While mainland China offers low-end to mid-priced units with multiple functions, Taiwan serves high-end markets with all-in-one systems.
Mainland manufacturers cater to developing countries and regions that require low- to midrange systems. Taiwan manufacturers, on the other hand, ship their products to developed countries, specifically Europe, which currently needs GPS-based systems for its pan-European eCall project.
All-in-one systems generally support GPS navigation; rearview systems; and mobile DVR and multimedia functions, such as digital photo frame and DVD player. Some advanced systems are also designed to support GSM and GPRS networks. Mainstream car alarm and remote starter systems feature two-way control, shock sensor, engine immobilizer, keyless entry, central lock/unlock, auto arm/disarm, car locator and trunk release.
General-purpose units dominate the central locking systems line as they are compatible with various car types. Their standard specifications include gun/clutch type actuator and manual/remote control, while advanced units incorporate dual-track and anti-jam design. DIY kits top the R&D agendas in manufacturers of both regions.
Suppliers expect prices of low-end products to increase slightly and those of high-end units to remain stable this year. Most of the interviewed companies have monthly production capacities of 10,000 to 20,000 units.
Mainland China's car security industry shifted gears at the turn of the millennium, when mainland manufacturers began to rule the domestic market. Before 2000, mainland China companies served as mere sales agents of products from Taiwan, Hong Kong and Japan. In the late 1990s, the domestic electronics and automobile industries grew remarkably, bringing along the then struggling car security industry.
According to industry sources, the current market value of car security products in mainland China is about $300 million. It is expected to exceed $1 billion in the next five to 10 years.
The mainland's supplier base consists of about 500 car remote starter and car alarm manufacturers, 100 central locking system makers, and hundreds of suppliers of other car security products. Production is generally small-scale with only about 20 percent of suppliers manufacturing in large volumes. Most car security product manufacturers are based in Guangdong, Zhejiang, Fujian and Jiangsu. These provinces' mature electronic and hardware manufacturing infrastructure and industrial supply chains have helped sustain the industry's growth.
The cities of Shenzhen, Zhongshan and Guangzhou in Guangdong, and Wenzhou in Zhejiang are strongest in car remote starter and car alarm production. Guangdong accounts for 60 percent of the mainland's total output, while Zhejiang accounts for 20 percent. Leading manufacturers in this segment include Steelmate Co. Ltd, Y.T.Tenon Electronic Technology Co. Ltd and Zhongshan Beiaos Metal Products Co. Ltd.
Guangdong and Zhejiang also lead the production of central locking systems in the region, with 50 percent of total output coming from Guangdong and 20 percent coming from Zhejiang. Shantou Yuanba Electronic Co. Ltd and Ruian Oumei Auto Parts Co. Ltd specialize in this product line.
According to industry experts, large profits during the industry's early years attracted a number of speculators to the line. These companies exist solely for profit, paying no attention to quality control or product development. They generally utilize substandard components and raw materials.
Thus in 2005, the government added car security products to its list of electronics requiring compliance with CCC standards in China.
Mainland China's car security export business is considered relatively young. As the region targets mainly midrange and low-end segments, the bulk of exports go to developing regions such as the Middle East, South America, Southeast Asia and Africa, where demand is higher. A few companies ship products to Europe and North America. Products have CE, FCC or UL stamps of approval.
Taiwan's car security industry, on the other hand, caters to high-end buyers. The 20-odd companies that make up the supplier base mostly develop high-priced integrated products that adopt a multifunction car security platform, and combine car rearview systems, GPS-based car alarms and multimedia functions.
The main production hubs are located in Northern and Central Taiwan. Most of the interviewed companies are focusing on the after-market, while some are developing easy-to-install DIY units. Active players in this line include Tung Thih Enterprise Co. Ltd, Tesorplus Corp., Hamg Shing Technology Corp., AnTec Electric System Co. Ltd and Dah Jing Enterprise Co. Ltd.
Some manufacturers of traditional security equipment, who have joined the line, are designing their traditional products suit the needs of the automotive industry. For instance, Taiwan Video System Co. Ltd (TVS), a manufacturer of CCTV monitors, cameras and DVRs, has developed a mobile DVR with built-in DVD player specifically for in-vehicle use. Companies that export to Europe are introducing GPS-based alarm and tracking systems to support eCall, a project of the European Commission that aims to provide quick assistance to motorists involved in accidents in any EU country.
To entice high-end customers, Taiwan-based companies are offering mainly all-in-one models that combine a number of key functions such as GPS, mobile DVR and rearview systems.
Car Eyes Technology Co. Ltd has released a product called Car Eyes System, which combines DVR, GPS, car alarm and multimedia player functions. The system can support up to eight cameras and record video on HDDs or memory cards.
In case of accidents or emergencies, the system can transmit the car's location to the control center or car owner's mobile unit via GPRS network.
The Car Eyes System's alarm function is connected to the car's built-in G sensor and pressure sensor. If the car is removed from its original location, or if the car windows are broken, causing a change in pressure inside the car's cabin, the system will immediately trigger the cameras and send an alert to the control center.
According to Car Eyes general manager Ghuan-Jen Lee, the company is planning to include digital TV function and touch panels in future models to provide more multimedia options. The current system includes a DVD function and card slot, and can be used as a media player.
Manufacturers of standalone mobile DVRs are also adding multimedia functions. TVS 4-in-1 car security product operates as a rearview system, mobile DVR, digital photo frame and DVD player.
The new model, LR-804J03, has an 8in LCD monitor and 4ch video input, and supports USB 2.0 and CD-RW. It has a media-out interface that enables connection to a second or third monitor. Because of its built-in memory card slot, the unit can also function as a digital photo frame. A slot-in DVD player completes its 4-in-1 function.
TVS hopes to further develop its H.264 compression technology, and introduce USB support and integrated functions such as realtime remote monitoring via 3G mobile phones and PDAs.
Orion Technology Ltd combines GPS tracking with wireless technology in its model, Easytrac basic. The unit is designed for vehicle tracking, fleet management, mobile asset tracking and GPS data logging. The product has two Siemens Tri-band GSM/GPRS modules that allow connection to a GSM or GPRS network. It also utilizes SiRF Star technology.
Once the car is removed, the system will send out an alert and location information. The unit enables stolen vehicle recovery and truck/trailer tracking as a value-added function.
Integrated models also dominate manufacturers' production output in mainland China. Most manufacturers offer whole car security systems with car alarm as the core function, and car remote starter and central locking system as optional accessories or add-on features.
These include regular car alarms, car remote starters, central locking systems, keyless entry devices, immobilizers and locks.
Mainstream systems feature two-way control, shock sensor, remote start, engine immobilizing, keyless entry, central lock/unlock, auto arm/disarm, car location and trunk release.
Demand for car security products is growing steadily, but suppliers are worried about the survival of the OEM and retail businesses. The retail market is shrinking as more original parts are being supplied by car manufacturers themselves. Nonetheless, the standard for car alarms and remote starters in new automobiles remains the same.
"Buyers are also becoming more quality- and price-sensitive because of the high standards set by car vendors. So we have to constantly develop new and unique products with very good quality to meet their demands," stated Grayson Zhang, general manager of Shenzhen Carscop Electronics Co. Ltd.
Carscop has released model CCFM-9, a two-way car alarm with multiple remote start functions. It has programmable timing auto start and periodical start, turbo timer delay, gear reservation mode, engine immobilizer, central locking control and arm/disarm signal output. Its turbo timer delay can delay engine turn-off by 3min or 6min for turbo engine protection.
The gear reservation mode helps users avoid parking in gear for cars with manual transmission. The remote control is based on FM technology, and the remote transmission distance is 1km to the main unit or 1.5km to the transmitter.
CCFM-9 also features realtime clock, parking timer, LCD alarm indicator with vibrate function and airconditioner pre-turn on control. It has an RFID option for auto arm/disarm.
Another model from Carscop, CCGSM-2, has a two-way GSM car alarm, central control and remote start. It adopts two designs, one with a standalone GSM control unit, and another with FM two-way car alarm unit. Its basic alarm function is the same as that of CCFM-9. Using a GSM network, the model can send an alarm and receive instructions at any time in any location.
CCGSM-2 allows the user to lock and unlock the car door, remotely start the engine or stop the car through a mobile phone or landline unit. Car positioning and voice monitoring are supported via GSM network.
Shenzhen Ansite Electronics Technology Co. Ltd's AST-618K is a GSM car alarm system with remote starter. It features remote alarm and control via GSM, car alarm with multiple triggers, remote engine and airconditioning starter, central locking system and car positioning.
"You can manage and control your car with this system. By making a single call, you can start the car, listen in and talk to the person in the car," explained Ansite sales officer Kitty Zhu. "If the car is stolen, you can stop it and lock the thief inside by making just one call."
Ansite recently launched an upgraded version with GPS, model AST-628K. Compared with GSM tracking, GPS is more accurate and can cover a wider distance without the signal restrictions of a GSM network. The model can send GPS position tracking data to appointed mobile phones. "The next step (for us) is to further enrich the GPS digital data map, specifically by introducing data maps for South America," said Ansite's Zhu.
Carscop's GPS-based car alarms have also debuted in the market. New models with GPS functions were set to be launched in March. The series includes car alarm-integrated models and standalone models for car tracking.
Multifunction models and product customization top manufacturers' R&D priorities. New products will tout new features such as GPS, GSM positioning and remote control, RFID keyless entry, ultrasonic motion detector, anti-robbery and remote window roll-up.
Unlike car alarms and car remote starters, the structure and form of central locking systems vary from car to car. Suppliers offer general-purpose and special-purpose systems in various forms.
General-purpose systems are most common because they are compatible with different car brands. Major specifications include 12V/24V input, gun/clutch type actuator, and manual/remote control. Most suppliers entertain special requirements and OEM/ODM orders.
The motor is the key component of central locking systems. Motors sourced from domestic suppliers are generally used in low-end and midrange models, while motors imported from Taiwan and Japan are used in high-end models. Some of the mainstream models feature dual-track and anti-jam design.
Oumei's PKS01, designed for 4-door vehicles, has one 5-wire and three 2-wire gun-type actuators. The unit has a dual-track and anti-jam design, weather-resistant material and 360ยบ rotating heads for easy installation. Other specifications include 12V DC and 10A input, 2.5kg or 3.5kg working force, 18mm stroke distance and a lifespan of over 100,000 cycles.
Carscop has also launched a DIY series that includes model DIYV1. The product comes with a 2-way car alarm and central door control. It has a 4-wire connection and air pressure detector, which also features door status check.
The main unit and the alarm siren are wireless modules. The FM remote control transmits at up to 1,000m, and touts vibration and key lock functions.
DIY kits and easy-to-install systems are part of manufacturers' product development efforts in 2008.
Prices of car security products in mainland China generally range from $10 to more than $100, depending on their key components, functions and accessories.
An entry-level one-way car alarm system is quoted at around $10 to $15, while a midrange two-way model costs around $30 to $40. GPS- and GSM-based car security products are regarded as high-end units and are quoted at about $130 and $70, respectively.
A typical single central locking system is priced at $5 to $10. Interviewed manufacturers said that the appreciation of the yuan has reduced their profits in recent months, thus forcing them to raise quotes for some low-end models this year. They added that prices of high-end units and systems will remain stable.
Carscop has a 10-member R&D team and a factory that can churn out a maximum of 20,000 sets of car security systems each month.
Oumei has 250 employees and a monthly capacity of 10,000 units. The company is working on further improving its products and introducing new car alarm models in H1 2008.
Car Eyes, a newly-established company headquartered in Taipei, focuses on the development of car security platforms. It serves the after-market, but also does a few projects for car manufacturers and car/truck team management companies.
Orion has been producing telematics products such as automatic vehicle location (AVL) devices and GPS trackers since its inception in 2004. The company specializes in software and hardware development for integration and improvement of advanced tracking technology.
Orion's factory carries ISO 9001 and ISO 14001 certificates, and is equipped with four production lines. It has a maximum monthly production capacity of 10,000 units, and a monthly export volume of about 5,000 AVL and GPS devices.
TVS, established in 1983, is now specializing in media DVRs for home and car security applications. Mobile DVRs account for 10 percent of the company's total sales. All its products are 100 percent manufactured in mainland China.
TVS exports 95 percent of its products, mostly to Europe, which absorbs about 40 percent of total shipments. The company's products are also exported to North America, Japan and mainland China.