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Huawei Global Analyst Summit 2014 on Automotive Business

by Kevin Li | Apr 29, 2014

Hidden amidst the repeatedly stressed vision for LTE infrastructure during the two-day Huawei GAS 2014 event was the company M2M strategy, which emerged during the MBB and home device presentation for Huawei consumer market category, a so-called emerging market that will be the major contributor to Huawei $10B enterprise segment revenue target. 
In Huawei M2M strategy, the automotive segment will take 50% share of the company future investment.  This amount is followed by smart metering at 20%, PCS at 10% and industrial routers at less than 10%, along with other segments.  In the automotive category, OBD devices, automotive modules and T-Box products are clearly listed as the company main focuses along with a third-party service cloud. 
Aiming at the largest module provider in the vertical markets, Huawei emphasized the importance of facilitating ecosystem development, ranging from the terminal/module, network infrastructure (pipe) to the cloud (content and service).
As the most mature and commercialized aspect of M2M, automotive should be the main battlefield for Huawei to achieve its ambitious M2M strategy. It is believed that OBD is a way to gain access to the aftermarket telematics marketplace in the short-term. OBD units can provide a range of services, including Internet access, usage-based insurance (UBI), all the eye-catching elements associated with this technology, and Huawei can leverage its experience in operating telematics backend systems for these types of services. Huawei has already entered the OEM market since its first vehicle-level communication module 'ME909T' was released with its Tier 1 partner Harman and OEM partner Daimler in December, 2013. 
With both tangible efforts in the aftermarket and OEM market, it is expected that Huawei plans will come to fruition in the OEM market two to three years from now.
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