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Automotive multimedia sales down in US, Europe

Posted: 23 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Strategy Analytics? automotive multimedia? in-car entertainment? in-car multimedia? US?

Despite increasing availability and strong consumer demand for automotive and multimedia communications features in cars, sales are poor, according to a report from Strategy Analytics.

Although navigation systems are available on over 160 vehicle models in production in North America and Europe, with Bluetooth connectivity on over 60 models in most mainstream car brands, multimedia sales remain at less than 5 percent, the report, titled "Automotive Multimedia and Communications Systems Supply and Adoption Analysis," further said.

Some selected companies, however, are able to generate significant sales in some specific segments. BMW, Mercedes Benz, Continental Automotive, Becker, JCI and Siemens VDO are all significant leaders in certain automotive multimedia and communications segments. But in general, many mainstream markets are still wide open. Strategic marketing issuesincluding pricing, promotion and positioningremain significant challenges for most mainstream car brands.

"There has been increasing vehicle model availability for many new multimedia and communications features, such as iPod interface, digital audio, Bluetooth and navigation. Apart from iPod connections, decent returns on these product investments are simply not being achieved by most car makers," said Joanne Blight, director of Strategy Analytics automotive multimedia and communications service. "Our surveys show consistent high consumer demand for and interest in a variety of automotive multimedia features in the vehicle. However, automotive companies just can't seem to get their marketing strategies right."

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