Automotive SectorOutline of Business and Priority Measures

Automotive Sector

Automotive sector will Respond to the Changing Business Environment in the Automobile Industry

The automobile industry is being required to take the initiative in addressing future environmental issues(CO2/NOX emission regulations) and adapt to the coming age of a self-driving society. In order to manage environmental issues, advanced electronics technologies are being developed to accommodate the shift to electric vehicles (EVs), and conventional meters are being replaced with digital meter display systems. In a society where self-driving cars will be widespread, vehicles will need to be equipped with various sensing devices, such as cameras and sensors. In addition, connecting such devices to the Internet will enable in-vehicle infotainment systems to show vehicle information and traffic information by deploying cloud services. Furthermore, the application of artificial intelligence (AI) will allow vehicles to provide drivers with more accurate and appropriate information.

With these advancements in automobiles, the importance of communication between vehicles and drivers (HMI: Human Machine Interface) is increasing and hence the automobile industry is facing the need to develop new technologies. By responding to the changing business environment, the automobile industry is expected to expand the safety and security features and realize an environment-friendly society.

Car-mounted equipment manufacturers including JVCKENWOOD are facing the need to keep pace with such changes in the automobile industry. JVCKENWOOD operates the Consumer Business and the OEM Business, and it will proactively respond to changes required in each business.

Consumer Business

The Consumer Business provides products mainly for existing vehicles. Amid the changing business environment in the automobile industry, JVCKENWOOD has launched dashcams with driver assistance features to help ensure safe driving and they can be retrofitted to existing vehicles. With them, it has gained the industry-leading market share in Japan. In addition, JVCKENWOOD has the Saisoku-Navi series of car navigation systems featuring high-contrast image quality and high-speed response. The series has been growing in market share in Japan. JVCKENWOOD also has car navigation systems and display audio systems that enjoy leading market shares in the U.S. and Europe, and they are compatible with Apple CarPlay and Android Auto which enable car-mounted equipment to be connected to the Internet. These products are highly acclaimed in the market.

OEM Business

The OEM Business deploys car navigation systems linked with dashcams, which we provide in the Consumer Business, in the dealer-installed option business. We are winning new orders for large projects from leading Japanese automobile manufacturers thanks to the high evaluation in the consumer market and excellent product performance.

JVCKENWOOD is also working on the development of next-generation digital cockpit systems (e-meters, camera monitoring systems, and head-up displays, etc.) that are showing high growth potential following the progress of digitization of car-mounted equipment. Our advanced digital cockpit system developed in collaboration with McLaren Automotive of the U.K. has been adopted for McLaren’s luxury sports car.

With an eye on the upcoming shift from conventional vehicles to EVs and self-driving vehicles, JVCKENWOOD will respond to changes in the automobile industry and achieve business growth by developing products that leverage the video, audio, and wireless communication technologies of the JVCKENWOOD Group as well as HMI technologies.

Looking to expand the factory-installed option business, JVCKENWOOD will collaborate with Shinwa International Holdings Ltd. (Tier 2 manufacturer of in-car CD/DVD mechanisms), which became a subsidiary in June 2013, and ASK Industries S.p.A. (Tier 1 manufacturer of in-car amplifiers/speakers/antennas), which became a subsidiary in April 2015. Together, we will win new customers by mutually utilizing our customer networks and production bases. We will focus our efforts on strengthening business, in particular, in China, which is the world’ s largest automobile market with great potential for growth, and other emerging markets including Asian countries.

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