Gemalto powers China's first connected car

Gemalto is partnering with Banma Technologies, a new joint venture between Alibaba Group and SAIC Motor, for the production of China's first Internet Car dubbed the Roewe RX5.

The RX5 leverages Gemalto's Machine Identification Module (MIM) — securing cellular M2M connections for industrial applications — and features advanced telematics such as Bluetooth virtual car key, locationing of the vehicle, voice-command-enabled remote control of in-car functions, and real-time road condition alerts, etc.

The MIM is compliant with the GSMA standards and supports remote provisioning of any operator's profile.

"The Roewe RX5, empowered by Alibaba's YunOS operating system, is the first mass produced internet car. It's a breakthrough embodying years of research and technological innovation," said Alex Shi, CEO of Banma. "It is a product that demands the most secure and reliable end-to-end connectivity."

Suzanne Tong-Li, president of Greater China and Korea at Gemalto, said connected cars mark the beginning of digital transformation across the automotive industry, paving the way for autonomous vehicles in the near future.

"Our expertise and global experience, combined with tried-and-tested secure connectivity solutions, put us in a sweet spot to help car manufacturers create smarter and more connected vehicles,” said Tong-Li.

The Chinese car market is currently the largest and fastest-growing in the world. In 2015, foreign and domestic car makers sold a total of 21.1 million passenger cars, up by 7.3% compared to 2014.

For 2016, the local connected car market is expected to generate a substantial revenue of $7.7 million. With an estimated compound annual growth rate of 45%, this market is potentially worth up to $33.9 million by 2020. Moreover, connected car penetration in China is projected to triple from 4.8% to 18.1% over the same period.