By Yoon Sung-won
EnGIS Technologies is boosting its global presence by expanding its connected car system supply deal with China’s major automaker Geely, the company said Thursday.
The Korean vehicle component maker said it has already provided a connected car system called “over-the-air (OTA)” to Geely Auto Group and will additionally supply OTAs to the Chinese firm for its new car. In total, Engis will ship 2.5 million OTAs to Geely.
The company said it expects to gain extra profits from the partnership with Geely through 2021 as the Chinese carmaker is gaining momentum in the global market.
“Geely’s influence has increased not only in China but also in the European market after its acquisition of Volvo,” EnGIS Technologies CEO Gregory Park said.
“We believe the partnership with Geely will boost our name value. We are seeing high potential to win additional contracts under cooperation with global vehicle component makers.”
Automotive OTA provides cars with wireless communication to networks, allowing high-speed updates to automobile systems and programs as well as diverse multimedia content such as video and music streaming services.
EnGIS said the global telematics market is booming as major automakers expedite to adopt connected car platforms and digital car infotainment systems. Wireless automobile system software updates had limited use in the telematics sector. But its uses have increased of late in line with the rising number of electric vehicles.
In particular, the company said it is seeing more market opportunities in the OTA system sector as more carmakers seek to cut costs for after-sales car maintenance services.
Citing a report by global market tracker Gartner, about 5.5 million of all cars recalled in 2015 could have been fixed through software updates, without mechanical repair, if they were compatible with wireless communication through OTA systems.
According to another market researcher, IHS Automotive, carmakers will be able to save more than $35 billion in 2022, up from $2.7 billion in 2015, through OTA software updates.
Established in 1998, EnGIS started as a provider of geographical information systems and digital mapping technologies. It is headquartered in Seoul and is running offices in Ireland, providing products to more than 80 countries worldwide.
“Our OTA systems will reduce recalls related to software updates, resulting in fewer expenses for carmakers,” an EnGIS Technologies official said. “They will also help carmakers introduce diverse car infotainment and maintenance systems.”