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Electronics in "Ultra Low Cost Cars" - challenges and opportunities for automotive electronics and semiconductor suppliers

Aug 01, 2008

Speakers address the impact of cheap cars on the automotive electronics market

electronica 2008 expects about 1200 automotive electronic exhibitors

Munich, Germany, August 1, 2008 - electronica 2008 will become the world showcase for automotive electronics - with an expected 1200 automotive electronic exhibitors, an automotive conference and special attention placed on the "Ultra Low Cost Car" (ULCC). There will also be a special talk entitled "Ultra Low Cost Cars - Opportunities and Challenges" during the automotive conference.

The electronics market for the ULCC - costing between $2,000 and $5,000 - is becoming highly important. In early 2008, Tata Motors ushered in the era of the ULCC when it launched the Tata Nano, the "One Lakh Car" ("100,000 rupee vehicle";). Strategy Analytics fores the annual growth rate for ULCC to be about 25% per year from 2010 to 2015 compared to 3% for the average sedan weighing less than 3.5 tons.

The fast-developing countries of China and India will drive demand for the ULCC to almost 7 million vehicles by 2015. Affordable ULCCs are expected to satisfy a new market of buyers consisting of the expanding middle class and current cyclists. Frost & Sullivan estimates that "small cars" represent about 75% of the total number of cars in these growing countries. Total market volume of 1.15 million cars (2007/2008) will rise to 2.1 million by the end of 2009/2010.

The enormous growth of ULCCs in the Asian market will impact the remaining automotive electronics market. Although current ULCC vehicles such as the Tata contain very few electronic elements compared with average American and European vehicles, the low cost electronic devices intended for the ULCC will inevitably find their way into more conventional cars.

The combination of ULCC electronics plus the increasing use of electronics in more conventional cars, for example to comply with emission regulations and satisfy customer demands, will cause electronics growth rate to exceed the automobile growth rate according to an estimate by Strategy Analytics. For example, electronic control units (ECUs) in ULCCs will average 36% growth per year between 2010 and 2015 and peak at a market volume of more than $2 billion (see Fig 1). By contrast, the total market for ECUs in this 5-year period will only grow on average by 5% and to $72 billion in 2015.

The nexus of automotive knowledge at electronica 2008 is the automotive conference held on November 10 and 11, 2008. Approximately 1,200 exhibitors will present products and applications relating to automobile electronics. The conference, the trade fair and the "Automotive" Focus Area in Hall A6, which will include a separate exhibition and speakers' forum, will combine theory and practice - a unique learning opportunity for the electronics and automotive industries./p>

Under the title "electronics meets automotive", speakers will present strategies, trends and technology during the 2-day conference. The speakers typically include key representatives from BMW, Delphi, Sharp, Valeo, Volvo, ELMOS Semiconductor, Freescale Semiconductor, Panasonic Industrial Europe, STMicroelectronics and Tyco Electronics AMP.

Ian Riches from Strategy Analytics will also present a special talk entitled "Ultra Low Cost Cars - Opportunities and Challenges". In this presentation he describes the future opportunities of automobile electronic suppliers and semiconductor manufacturers and the applications that will lead the field. While safety systems and hybrid vehicles drive electronics growth in established automobile markets, simple power train, comfort and infotainment functions will drive electronics growth in fast-developing countries. Further information on electronica and the program of the electronica automotive conference can be found on the Internet at

Readers can obtain the conference program from

About electronica and Global Electronics

electronica 2008 will take place at the New Munich Trade Fair Center, November 11-14, 2008.

electronica is the electronics industry's leading international trade fair for components, systems and applications. It has taken place in Munich every two years since 1964 and is a core component of Messe M�nchen International's electronic trade fair network. This network also includes the leading international trade fair Productronica in Munich as well as regional trade fairs in Brazil, Hong Kong, China and India. With more than 8,000 exhibitors and more than 280,000 visitors at these trade fairs, Messe M�nchen International is one of the major international trade fair organizers in this segment.

The Internet portal is the virtual platform of the international electronics industry with industry information, market data, product innovations and application reports as well as information about Global electronics trade fairs.

About electronica registration

Attendees may save 20% and save time at the show by purchasing tickets online at Online registration allows attendees to avoid lines to enter the event and provides free access to Munich's excellent public transportation system.

About Messe M�nchen International (MMI)

Messe M�nchen International (MMI, Munich Trade Fairs International Group) is one of the world's leading trade-fair companies. It organizes some 40 trade fairs for capital and consumer goods, and key high-tech industries. Each year over 30,000 exhibitors from more than 100 countries, and over two million visitors from more than 200 countries take part in the events in Munich. In addition, MMI organizes trade fairs in Asia, Russia, the Middle East and South America. With five subsidiaries abroad - in Europe and in Asia - and 66 foreign representatives covering 89 countries, MMI has a truly global network.

MMI headquarters is Messegel�nde, 81823 M�nchen, Germany. Tel. (+49 89) 9 49-2 07 20 Fax: (+49 89) 9 49-2 07 29. Corporate website is Electronica website is Editorial contacts are Forrest Sass, Theorem, Tel +1 925-462-5280 and Angela Praeg - Messe M�nchen International Tel +49-89-949-20670 Reader contact is Carolin Schuetze - Munich International Trade Fairs Tel +1-212-974-1880 . A digital version of this press release is available at "Photos and Logos" for images. There is a special electronica image at

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