The automobile industry is being demanded to address future environmental issues (CO2/NOｘ emission regulations) and to adapt to the coming self-driving society. To manage environmental issues, advanced electronics technologies are needed to accommodate the shift to electric vehicles (EVs), and conventional speedometers and other instruments are being digitalized. In the self-driving society, vehicles will also need to be equipped with cameras and various other sensing technologies. In addition, being connected to the Internet will enable in-vehicle infotainment systems to show vehicle information and traffic information by utilizing cloud services. Furthermore, the application of artificial intelligence (AI) will allow vehicles to provide drivers with more accurate and appropriate information and services.
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. Responding flexibly to these changes, JVCKENWOOD aims to contribute to a safe, secure and comfortable motorized society through solutions and services utilizing our visual, audio and communications technologies that will give us an edge in car navigation, dashcams and other products.
In the Aftermarket Business, JVCKENWOOD has the Saisoku-Navi series of car navigation systems f eaturing high-contrast image quality, high-speed response and high-quality sound reproduction, which has seen its market share grow in Japan. We also have car navigation systems and display audio systems that enjoy leading market shares in the U.S. and Europe, and these 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.
Dashcams that can be retrofitted to existing vehicles are becoming hugely popular in the wake of growing safety and security awareness among automobile users. JVCKENWOOD’s dashcams have captured an industry-leading s hare in Japan by combining our existing in-car technologies and imaging and optical technologies to deliver high functionality, high reliability and high-quality video recording, and by incorporating driver assistance features to help ensure safe driving. Going forward, we will carry out full-scale expansion in overseas markets and achieve enhanced functionality by incorporating communication features for the shift to connected vehicles.
In the OEM Business, JVCKENWOOD is strengthening its proposal activities for car navigation and dashcams in the dealer-installed option field. We are winning new orders for large projects mainly from leading Japanese automobile manufacturers thanks to our strong reputation and excellent product performance in the aftermarket. In the factory-installed option field, we are developing display audio systems specifically designed for certain vehicle models, which are selling well.
JVCKENWOOD is also working on the development of car-mounted cameras and various sensor technologies, which are expected to show growth with the shift from conventional vehicles to EVs and self-driving vehicles. By developing in-vehicle optical related businesses that leverage the visual, audio and communications technologies of the JVCKENWOOD Group as well as products that utilize HMI technologies, we will improve our proposals for next-generation vehicle interiors and try to expand our business.
Looking to expand our factory-installed option business, we will collaborate with Shinwa International Holdings Limited, a tier-2 manufacturer of CD/DVD mechanisms for vehicles which became a subsidiary in June 2013 (now JVCKENWOOD Hong Kong Holdings Limited), and ASK Industries S.p.A., a tier-1 and 2 supplier of car-mounted speakers, amplifiers, antennas, and cable products which became a subsidiary in April 2015. Together, we will win new customers by utilizing each other’s customer networks and production bases. We will focus our efforts on strengthening business particularly in China, which is the largest automobile market in the world and has great potential for growth.