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TMCNet:  Cars should get connected to boost sales

[February 22, 2013]

Cars should get connected to boost sales

Feb 22, 2013 (Datamonitor via COMTEX) -- Daimler AG has announced a partnership with Deutsche Telekom to improve the technology in its vehicles. The collaboration will focus on providing motorists with online services in their car to improve the driving experience. Such features will become more and more commonplace over the coming few years, and those manufacturers that do not follow suit may be left behind.

Consumers' interest in features that are not connected to the driving performance of the vehicle is growing. They want to have equipment that allows them to be connected to the Internet while in their car. Daimler's partnership with Deutsche Telekom puts the manufacturer at the forefront of automotive technology, as it will be providing cloud infrastructure, services, and connectivity all from the same source, developed specifically for the automaker. Applications such as real-time traffic data, personal radio, and access to social networks are expected to be provided in future Daimler vehicles.

Some industry commentators have predicted that all vehicles will be connected to the Internet by 2014; however, there are concerns about the adverse effects that this may have. The introduction of apps could lead to more accidents as drivers become distracted by information displayed in their vehicle. Despite this fear, however, the growth of technology featured in vehicles is unlikely to be hindered. Technology giant Apple has already set up an automotive team to look at how its products can be used in cars, and more companies are investing in this industry to continue its rapid development.

The introduction of technology in vehicles will not be the preserve of luxury car marques, with mass-market vehicle manufacturers already introducing smartphone connectivity. In-car technology is developing fast, and consumers are increasingly being swayed by its presence when purchasing a new vehicle. Manufacturers must react quickly to developments to continue being attractive to consumers, and those with no plans to introduce technology into their vehicles may find themselves left behind and playing catch-up.

For more information about this topic please contact Sam Ling at sam.ling@verdictretail.com.

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