Telecom service provider TeliaSonera on Wednesday said its M2M Services will provide connectivity in Tesla Motors’ Model S to customers in Sweden, Denmark, Finland, Estonia and Latvia.
As per the M2M deal, Tesla to optimize the process of deploying and managing connectivity to its electric vehicles, from the factory to the customer.
Tesla’s Model S features connected services like remote vehicle diagnostics, internet radio, and web browsing, all available at the driver’s fingertips through a 17” touchscreen and continually improved through remote software upgrades.
“Tesla’s Model S demonstrates that connected cars provide an improved driving experience and more cost efficient cars by smart maintenance and management of connectivity,” said Hans Dahlberg, head of TeliaSonera Global M2M Services.
Meanwhile, ABI Research said almost one in two cars sold in China by 2018 will be supplied with either an embedded, or hybrid OEM-fitted telematics and infotainment system.
More than 20 OEMs will launch services in China during the next 2-3 years to address the growing consumer demand for connectivity. However, these OEMs, particularly the foreign companies, face significant financial and strategic challenges in deciding which companies to partner with along the value chain.
In terms of innovation, China is still playing catch-up and relies mostly on the expertise of foreign companies to design systems for the Chinese market.
While in-vehicle telematics seems very appealing to Chinese consumers, there are some critical factors that need to be overcome in order to drive significant market growth in service revenues. Top of the list is establishing a successful business model. The percentage of renewals on OnStar, Toyota G-Book, and SAIC Inkanet is very low which makes it difficult for these services to be profitable.
