LeTV is reportedly making a foray into the new energy car business. The move doesn’t seem to make any sense. What does an online video sharing site have to do with auto making? There’s apparently no connection between the two businesses.
But on closer examination, the growing importance of an infotainment system inside the car may explain why LeTV could find a key role in the next generation automobile.
“Backseat economy” is now a buzzword in the internet and automobile industries; the backseat of a car would be as important as the living room that internet firms are hoping to conquer. The demand for quality videos and entertainment from backseat passengers is growing, and that is an area where LeTV knows a lot more than an automaker.
According to reports, LeTV has teamed up with Beijing Automotive Industry Corp. (BAIC) to develop a new energy vehicle that will be named Le Car. The news came just days after Alibaba revealed a similar joint project with Shanghai Automotive Industry Corp. (SAIC).
BAIC chairman Xu Heyi said earlier this year that automakers could possibly become subcontractors for internet firms interested in launching their own auto brand.
LeTV’s self-developed smart television operating system LeTV UI offers a strong foundation for the company to develop its vehicle infotainment system.
In its core business, LeTV has demonstrated the ability to incorporate internet features into its devices.
Then why new energy cars? A slew of generous government incentives announced over past few months would explain that.
The State Council has rolled out up to 25 specific measures to boost the development of the sector. These include encouraging private funds to take stakes in the construction of charging facilities. Several regions have also dismantled local barriers to new energy autos, while 30 percent of new government car purchases in the coming two years will be new energy models.
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