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The Connected Car: Driving the Industry Forward
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The Connected Car: Driving the Industry Forward



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  • 1. The Connected Car: Driving the Industry Forward Telematics Update Munich November 2009 Hughes Telematics, Inc. Proprietary & Confidential
  • 2. Can Telematics Fuel Industry Recovery? 2 Proprietary & Confidential
  • 3. Can Telematics Fuel Industry Recovery? 3 Proprietary & Confidential
  • 4. What NEW is Driving this Optimism? Feature Integration Connected Services Overnight Innovation Consumer Interest OEM Cost Reduction Technology Device Integration Connectivity Repairs Consumer Savings Government Regulation Pay as You Drive Insurance eCall Continues to Grow Congestion Charging Emissions Reduction Car-to-Car Communications Driver Information 4 Proprietary & Confidential
  • 5. Let’s Consider the Buyer Who is the next generation buyer? What do they want? How will TSPs deliver it? When must OEMS deliver? 5 Proprietary & Confidential
  • 6. What Do Tomorrow’s Buyers Look Like? The Next Gen 1 o Under 35 years of age o Mostly female o Moderate education o Avid internet users o 2nd highest ownership of electronic devices o Try to stay current with new technology o 50% are very interested in purchasing telematics in next vehicle 1 GfK Automotive Study, 2007 6 Proprietary & Confidential
  • 7. What Do Tomorrow’s Buyers Look Like? The Mega Techies 1 o Under 35 years of age o Mostly male o College Grads o Actively adopt new technology o Want instant access o Highest ownership of electronic devices o 70% are very interested in purchasing telematics in next vehicle 1 GfK Automotive Study, 2007 7 Proprietary & Confidential
  • 8. Consumers Crave Connectivity Smartphones were 21% of European mobile phone sales in Q2 ‘09 – IDC Mobile Internet adoption is set to grow to 39 percent in Western Europe in 2014 from 13 percent in 2008.– Forrester Research International Facebook users grew from 34 million at the beginning of ‘08 to 95 million users in ‘09 – Facebook 8 Proprietary & Confidential
  • 9. In Fact – Consumers Are Obsessed The average European averages 4 texts a day; teenagers can average as high as 100. – Tomi Ahonen Mobile Telecom Annual Review 2009 In February 2009, Facebook accounted for 4.1% of all minutes spent online in Europe. – ComScore 77% of Europeans could not live without daily access to the internet, compared to 54% for access to a car. – AMD & YouGov 9 Proprietary & Confidential
  • 10. Buyer Values Are Changing - Dramatically 10 Proprietary & Confidential
  • 11. Buyer Values Are Changing – Dramatically2 Thrifty o Virtual Accessories, Mobile Coupons, Social Apps, PAYD, SVT Insurance Discounts Adaptability o OTA Reflash, Application Store, Mobile Apps, Web Personalization Consumer to Consumer o Social Apps, Web Affinity Groups Green o Diagnostics, Emissions, Eco Navigation, Smart Charging 2 Consumer Psychology, The Economist, April 2009 Proprietary & Confidential
  • 12. Driving Connected: High Interest Daily Utility Opportunities Safety and Security Navigation Convenience Diagnostics Infotainment 12 Proprietary & Confidential
  • 13. Driving Connected: The Opportunity Opportunities Enhancements Info On Demand Mobile Apps High Daily Utility Services that OTA Updates Traffic Productivity Create Daily Utility Weather Navigation POI Search Social Apps Streaming M-Commerce Media Peace of Mind Lifestyle Opportunities to Eco-Telematics Core Services Internet Create Loyalty Low Daily Utility VII Emissions Concierge Dealer Connect Gaming Diagnostics ACN/E-Call High Integration Low Integration Safety & Security Navigation Infotainment Diagnostics Convenience Proprietary & Confidential
  • 14. How to Deliver Today’s Services Flexible and Scalable Architecture Supports Rapid Service and 3rd Party Integration Multiple HMIs Multiple Hardware Platforms 14 Proprietary & Confidential
  • 15. How to Deliver Tomorrow’s Services 15 Proprietary & Confidential
  • 16. Telematics Availability Percentage of New Cars Shipping with Telematics in Europe3 70% 60% Research suggests 65% of vehicles 50% will ship with telematics by 2014 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3 ABI Research, 2009 16 Proprietary & Confidential
  • 17. Willingness to Pay PEoD for Safety and Safety & Security 70% Security is only -0.13. 60% – GfK Automotive 50% 40% 48% of people are 30% definitely/probably 20% 10% interested in In- 0% Vehicle Internet. – JPDA, $10 $15 $20 $25 2009 Navigation 50% 52% of people are 45% 40% definitely/probably 35% 30% interested in Personal 25% 20% Assistance Safety 15% 10% 5% Services. – JDPA, 2009 0% $5 $8 $11 $14 17 Proprietary & Confidential
  • 18. Timeline “By 2012, the majority of vehicle manufacturers will concentrate product development efforts for mature markets on enabling wireless data connectivity in more than half of their next- generation cars.” – Gartner Predicts 2009 “A critical turning point for vehicle ICT solutions is only two model generations away.” – Gartner 18 Proprietary & Confidential
  • 19. The Hughes Telematics Response Keys for Success o Develop a flexible architecture for future growth o Look beyond current interest levels and build towards latent consumer trends o Break free from stale business models o In a word – Simplicity o Integrate with the rest of the ‘connected’ ecosystem o ‘Cool’ never goes out of style 19 Proprietary & Confidential
  • 20. Contacting Hughes Telematics 20 Proprietary & Confidential