Banma rolls out its first year of operation of internet-connected vehicle

Operating profit of manufacturers of internet cars is expected to catch up to if not surpass that of traditional carmakers within five years

SHANGHAI, Nov. 13, 2018 /PRNewswire/ -- On November 8, China-based Internet car solution provider Banma Technologies CEO Hao Fei said at the opening ceremony of the month-long promotion of "Hi Banma" that "Banma will launch the first year of operation of the internet-connected vehicle today."

During the one-month promotion, 600,000 Internet-connected car owners across China will have in-vehicle access to a number of convenient services from five leading businesses, including intelligent parking, smart refueling, traffic monitoring, self-driving road trips and e-commerce. In addition, by virtue of being an Internet-connected car platform, Banma will provide a complete set of systematized management tools, including driver profiles, scenario engine diagnostics and others, to car manufacturers to enhance their operation value.

Mr. Hao said: "With a shift in how and where in the production and service chain profits are generated, the entire business model of the automobile industry will change. I believe that the operating profits of car manufacturers adopting the new model will not only catch up to but will surpass that of the traditional profit model within five years."

"Transformation" becomes the key word of automobile industry

According to statistics from China Passenger Car Association, just in the first three weeks of October, China's domestic passenger car sales fell 23% from a year earlier. China's passenger car market is expected to see an annual decline in sales this year, the first decline since 1990.

Given the situation, "transformation" will become the key word of the entire automobile industry next year. Although some traditional carmakers used similar language to rebrand themselves as "travel service providers" long ago, traditional carmakers can only claim a few successful cases in how to connect to drivers.

Commenting on this, Hao Fei said "Automobile manufacturers need to shift their focus from sales volume to the number of active users, user conversion rate and other metrics, as well as embrace an internet mindset." Hao Fei said that by using the AliOS operating system, Banma can create tools that understand drivers, focus on drivers and serve drivers, creating a model that allows car manufactures to create new revenue streams.

Banma builds a new automotive ecology, rolling out the first year of operation of the internet-connected vehicle

The AliOS-based Banma operation system is currently deployed by many carmakers, including Roewe, MG, Maxus, Dongfeng Citroen, Ford and Qoros.

Banma is also in the process of building standardized software platforms that are compatible with all manner of car hardware. With open platform attributes, leading innovation and continuing increase in market value, Banma recently raised over 1.6 billion yuan (approx. US$230 million) in its first financing round.

Based on its software platform, Banma continues to expand easy-to-interpret dynamically-created graphics around all instrumentation and messaging having to do with the operation and management of a vehicle. In 2017, the company launched smart refueling and intelligent parking services, moving the automobile industry from pure manufacturing to driver-centric operations. Smart refueling has been installed at more than two thousand gas stations in 102 cities across 26 provinces and regions in China, while intelligent parking has been integrated into the service configuration at more than eight thousand parking lots across 200 cities.

Recently, Banma launched "Future Scenic Spot" jointly with Fliggy (Online Travel Agency of Alibaba), and plans to upgrade more than 1,000 such areas within 3 years.