According to foreign media reports, in the competition to manufacture cars with digital networking services, Toyota and Nissan are facing the risk of being dragged down by the local market. Let's take a look at the related content with the car electronics editor. Unlike car consumers in the US and Europe, Japanese consumers are reluctant to pay for these networking features and services. The result: only 10% of cars in Japan are equipped with embedded networking services, compared with 49% in the US, 31% in Europe, and 20% in China. The threat to Japanese automakers is that as global demand for connected services continues to increase, their competitors are moving on. Japanese automakers control almost all local markets, and most of their product development is done domestically. Competitors, including General Motors, have invested heavily in networking services, arguing that this will be a new source of revenue in the future, as consumers in Europe, the US and China are beginning to accept online shopping, entertainment and custom coupons. Masanori Matsubara, senior analyst at IHS Markit, said: "This is a big risk for Japanese automakers. They must compete with the Detroit Big Three and the Germans on a global level. These competitors are experienced and established. From ecosystems and service platforms." Japanese consumers prefer to connect their smartphones to a car's system, such as listening to streaming music, rather than choosing a networked service on the built-in dashboard. This means that data flows to smartphone vendors such as Apple or Google, rather than giving car companies a huge opportunity. According to McKinsey estimates, the data generated by smart and connected cars will create a market of up to $750 billion in 2030. Consultant SBD AutomoTIve estimates that two-thirds of cars in Europe and the United States will have networking capabilities by 2020; in Japan, the proportion of cars with networking capabilities will be less than one-third. Lee Colman, head of connected car research at SBD AutomoTIve, said: "This needs to be driven by customers. Automakers don't want to offer these services unless they know they want them." This risk is similar to the mobile phone market 10 years ago, when Japanese brands did not fully turn to smartphones. Although flip phones are almost extinct in other places, they still exist in Japan because they meet the basic needs of consumers and are more suitable for the elderly. This phenomenon is called "non-mainstream" in the local area, and now flip phones are also called "non-mainstream." In the networking service, GM is the deserved leader. In 1996, it took the lead in launching the OnStar system in Cadillac. Originally designed for emergency and security purposes, the system can now be used by car owners to book restaurant locations and enjoy discounted service at gas stations. GM did not disclose the financial performance of the OnStar business, but the department has been profitable for a long time. In China, local brands such as Lectra will promote their latest networking features at the Beijing International Auto Show, which opened on April 25. Li Shufu, the owner of Volvo Cars, launched the Lectra brand last year. The target customers are young urban consumers who like Internet and carpooling services. The European Union mandates that cars must have networking capabilities for safety reasons, requiring that all new cars must be equipped with eCall technology starting in April. In the event of a serious accident, the system will automatically send an emergency service to the location of the vehicle, even if the driver is unable to make a call. According to Matsubara of IHS Markit, the Japanese government has not introduced a similar system, and local automakers have not launched services to attract users. Comanman of SBD AutomoTIve said that a system that can help drivers avoid congestion, or new services for the elderly, will eventually prove to be welcome. Coleman said: "The Japanese native network service that meets local demand is a multi-billion dollar market. It depends on what problem you are trying to solve." Toyota has launched a service called “T-Connect†to provide Japanese drivers with real-time traffic information and to allow them to book restaurant seats through manual services. But Akio Yamamoto, general manager of networking innovation at Toyota, said the service has not won the support of many customers. He said: "We are doing our best to improve the T-Connect approach. However, if T-Connect can't win market recognition, we will consider various options to provide good networking services for our customers." Toyota started its networking company in 2016 with the goal of installing the system on 70% of its cars by 2020. Nissan Motor said last month that the company plans to provide networking capabilities for all Nissan, Infiniti and Datsun cars sold in key markets by 2022. Honda Motor has not announced plans, but it said it is working with Softbank to develop new networking technologies. Takao Asami, senior vice president of research at Nissan Motors, said: "The turning point will occur between 2020 and 2025. If we miss this time period, we will face big problems." 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