Short Term Win but Long-Term Loss!!
The alliance, which manufactured 10.6 million vehicles in 2017, is the largest automaker in the world. The agreement is a big win for Google, as it will considerably increase the penetration of Android OS in automobiles. Android OS will be installed in the cars manufactured by the alliance starting from 2021. Earlier, companies like Volvo had embedded Android OS in their cars. But with the largest automaker choosing to embed a third-party OS, it may lead other automakers to re-think their digital strategy.
Embedding Android OS is different from how many passenger cars are using Android Auto, in which the apps from a smartphone are just projected on the central display, but with Google having no control on the resulting data.
The agreement might seem to be a lucrative option in short term, as it saves the cost of developing competitive digital and connected services and OS. However, in long term the alliance would need to share valuable driver data with Google, likely affecting its future revenue generation from digital services. - Aman Madhok
Existing Subscriber?
Sign in to continue reading
New to Counterpoint?
Register to our service
Category
Report Type
Report
Summary
Category
Published
Sep 21, 2018
Contact us
