From mainland China, Shenzhen Roadrover's A2270HC integrates DVD playback, navigation, Bluetooth, radio, MP3/MP4 playback and game functions.

Whether in standalone or integrated configuration, units retain visibility in increasingly blurring car A/V lines.

Despite the crossover trend in in-car electronics, DVD players in standalone and integrated configurations remain a strong line in the car A/V sector judging from the active lineup of suppliers in Greater China. More than 60 companies comprise mainland China's supplier base. About 20 makers are located in Hong Kong and between 20 and 30 are based in Taiwan. Most of these manufacturers' product expertise is diverse and extends to other car electronics such as audio, A/V and infotainment devices.

Across all three regions, the car DVD player industry is driven by lowering component costs, a more mature technology and the rising popularity of mobile entertainment. The DVD-based movie and entertainment industry is also a growth accelerator for the line.

In mainland China, the car DVD player line's development surge in the last two years has established mass production at stable output, especially among manufacturers based in Guangdong province. The product range consists of players with monitors in in-dash, sun visor, flip down and headrest form factors, as well as players without screens. In-dash players take the mainstream position across the line, with 6.5in emerging as the popular LCD size. There is, however, reported demand for lower-priced smaller-screen models. Manufacturers plan to release more 1-DIN units with 4.3in LCD screens to indulge this market.

Taiwan makers also noted a rising demand for players with basic functions. This development heralded the comeback of standalone players on the island. This is despite Taiwan being already entrenched in the production of multifunction A/V systems that count DVD playback as just one among a host of add-on features. In all, the island has 70 to 100 makers involved in the multifunction system line.

Hong Kong makers continue to carry car DVD players as an independent line among their other onboard entertainment products. Offerings from the special administrative region typically have touchscreens and built-in TV tuners. Most manufacturers have production facilities in mainland China, shipping their output either from their host ports or from Hong Kong itself. The island shipped at least 1.1 million car CD/VCD/DVD players valued at $42 million in the first 11 months of 2007, according to Hong Kong Customs. The figure is 1.1 percent lower than the shipment value during the same period in 2006 but does not include direct shipments from Hong Kong-owned factories on the mainland.

	The SA-7812 in-dash DVD player from mainland China's Shenzhen Sion has a 7in touchscreen display, 3D interface, Bluetooth and GPS.

To get ahead of the competition, makers in mainland China remain intense when it comes to product development efforts while aiming for shorter lead times. Overseas markets receive the bulk of shipments of interviewed companies.

Shenzhen Roadrover Technology Co. Ltd sets aside 20 percent of annual profits for its product development budget. The company, which has a technical background in navigation, mainly produces car DVD players with GPS. Last year, it sold nearly 72,000 car DVD players, 70 percent of which were exported. The maker's other major lines are car GPS and portable GPS, which, together with car DVD players, brought in $4.5 million in revenue last year. Shenzhen Roadrover ships to the Middle East and Africa, from where it generates 40 percent of its yearly earnings.

Shenzhen Sion Technology Co. Ltd allocates 3 percent of its annual sales revenue for product development activities. It focuses on the manufacture of 2-DIN models with 6.5in or 7in monitors but produces 1-DIN units as well. The export-oriented company ships 90 percent of its car DVD player output, primarily to North America and the European Union. In 2007, Shenzhen Sion's sales revenue was $1 million.

Shenzhen Timeless-Long Industrial Co. Ltd allots 8 percent of annual sales to product development activities. It concentrates on in-dash car DVD players with 7in monitors but also offers models with 4in and 4.3in LCDs. The European Union is Shenzhen Timeless-Long's major destination, representing 45 percent of annual sales. Last year, the company's annual sales revenue reached $50 million.

Product development at Zhuhai Witson Industrial Co. Ltd receives an allocation of 10 percent of annual sales. The maker supplies car DVD players, car LCD monitors and car GPS. Countries in the European Union and North America are the manufacturer's major overseas destinations. The company achieved sales amounting to $12 million last year, with 90 percent generated from exports.

Exports will continue to be the focal point of all interviewed companies' promotional efforts this year with further plans to expand their markets.

While Taiwan's car electronics industry has determinedly moved toward multifunction A/V systems, some makers have observed renewed market interest in standalone car DVD players and are launching models to cater to this requirement.

One such company is Altech Auto Security Co. Ltd, among Taiwan's active suppliers of multifunction A/V systems. The company's latest model, the AD55, is a slot-in standalone car DVD player with an SD memory card reader and a USB port. The player is compatible with most car A/V systems and reads multimedia files, including DVD, VCD, SVCD, CD-R/RW, MP3 and DivX. Its other features include multilanguage support, last scene memory, volume control and slow motion playback. The 9V to 16V DC model comes with a remote control.

Makers involved in car TV/monitor production frontline the DVD player segment in Taiwan, making DVD playback a standard function in their headrest, flip down and in-dash units. The DVD sector on the island also includes car PC makers as well as suppliers of media servers with monitors. Most of these manufacturers cater to the aftermarket segment.

Multifunction A/V systems that integrate DVD playback, however, remain the dominant output of Taiwan suppliers. This is especially true for those who want to shun the price competition in the standalone category and fill the demand for multifunction models.

The island's A/V industry is supported by a growing number of domestic component suppliers, offering them alternatives to foreign sources. LCD, a key component for car DVD products, is available from homegrown panel suppliers. Panels account for 20 to 30 percent of the total manufacturing cost in 7in models and more than 60 percent for 10in or 12in units.

The DVD loader is another critical component that Taiwan manufacturers usually source from Japan suppliers—such as Sanyo, Sony and Panasonic—for proven reliability. Thanks to a more mature technology, however, the number of domestic suppliers of DVD loader solutions on the island has grown. Among the active ones are Lite-On Technology, Kingstate and Quanta Storage.

	Hong Kong-based Freeway offers the DVD-2686 car DVD player featuring a 3in display, fold down detachable panel, front A/V input, rear camera video input, high power audio output and USB slot. RDS, TV tuner, Bluetooth and GPS are optional.

Interviewed Hong Kong suppliers remain riveted to their export businesses and are confident of improving volume this year.

Freeway China Co. Ltd, which produced 600,000 car DVD players in 2007, projects total exports to reach 1.2 million units in 2008. The company's car DVD players are sold to importers, distributors and major retail chain stores in Europe, North America, Russia, Turkey, Malaysia and Taiwan. It has a full-time sales representative in the United States.

Of the 200,000 6.5in and 7in car DVD players shipped by Freeway last year, 90 percent had touchscreens and 50 percent had TV tuners. The company also markets other car A/V products such as GPS navigation systems, VCD players, MP3 players, CD players and all-in-one entertainment centers. It generated $50 million in total sales last year.

Superior Sound Car Audio Fty Ltd expects 200,000 to 250,000 car DVD players to be exported throughout 2008, up from less than 100,000 units in 2007. The company's main export markets are the United States, South America, Eastern Europe and Asia. Superior Sound also manufactures other car A/V products such as radios, cassette players, CD players and VCD/CD/MP3 players.

Anson High Technology Ltd began as an OEM provider of electronic components in 1978. It is now a professional OEM/ODM supplier of car A/V systems targeting mainland China, the United States, Europe, South America and other major overseas markets. Aside from car DVD players, the company also makes CD/MP3 players, CD players, AM/FM radios with USB and SD slots, 6- or 10-disc changers and steering wheel remote controllers.

Anson has an in-house design team to conceptualize its models. The company also designs and manufactures some of the components for its products. "We will establish an image of high quality for our products first, and then we will venture into promoting our own brand," said David Lo, marketing manager at Anson.

Notwithstanding a rosy outlook for overseas business, suppliers in Hong Kong continue to face challenges. Those with factories in mainland China have to contend with rising production costs due to the continuous appreciation of the yuan and rising labor costs. The latter factor is due to the mainland's growing economy and new labor laws.

	Sunny Bright's CT-7008 from Taiwan is a 2-DIN DVD player with a 7in touchscreen. It has built-in radio, hi-fi amplifi er, Bluetooth and SD card slot.

Manufacturing in mainland China is centered in Guangdong, with up to 80 percent of the region's suppliers gathered in its cities. Large-scale companies in the province whose individual output volume exceeds 50,000 units a year account for more than 50 percent of Guangdong's total production. Among them is Foryou General Electronics Co. Ltd.

Shenzhen Roadrover expects its output will increase by 30 percent. The company has been developing and producing car DVD players since 2004, three years after it was established. Its factory has five assembly lines and 350 employees, including 200 production workers, 50 R&D engineers and 30 QC staff. It has a monthly production capacity of 6,000 car DVD players. The maker accepts OEM and ODM orders.

Shenzhen Sion expects a production shipment of 200,000 units for 2008, exceeding its 2007 figures of more than 140,000 units. The company has more than five years' experience in producing car DVD players. Its two factories in Shenzhen—one in Bao'an and the other in Shajing—have a combined area of 3,000sqm and are equipped with three assembly lines, including temperature and vibrating testing equipment. Its total workforce of 350 includes 250 production workers, 30 R&D engineers and 40 QC members. Shenzhen Sion's monthly capacity is 20,000 car DVD players. OEM and ODM orders are accepted.

Shenzhen Timeless-Long also plans to increase output this year, up from more than 72,000 units in 2007. The company, founded in 2004, began to develop and manufacture car DVD players in 2005. Its 3,800sqm production facility in Shenzhen has six assembly lines equipped with SMT machines, plastic injection machines and other testing equipment. The company has more than 300 employees, including 253 production workers, 16 R&D engineers and 32 QC staff members. Shenzhen Timeless-Long's monthly production capacity is 10,000 car DVD players.

Zhuhai Witson anticipates a 10 percent production increase this year, up from its 2007 shipment of about 300,000 car DVD players. The maker entered the manufacturing business in 2003 and joined the car DVD player sector the following year. It has a 5,000sqm factory in Shenzhen with four assembly lines and SMT machines. Its total workforce is 355 and includes five R&D engineers and five QC members. Zhuhai Witson has a monthly capacity of 25,000 units. It accepts OEM and ODM orders.

Hong Kong-based Freeway, on the other hand, was scheduled to move to a newly constructed 94,000sqm manufacturing complex in Huizhou, Guangdong, in March 2008. The new factory houses 17 highly automated production lines that can turn out 5 million car audio products annually. The company plans to retain its current staff size of 1,000 employees.

QS-9000-certified Freeway adopts a U-shaped production system instead of the traditional straight-line assemblymethod. It produces smaller batches of a variety of models, enabling the company to serve customers who seek small volumes of diversified products. Overseeing new product development at Freeway is an in-house team of 100 engineers and designers who work closely with research institutions such as the University of Science and Technology of China, and IC vendors Toshiba, Samsung, ST, Philips and Renesas. For its software requirements, Freeway collaborates with a German software firm. The company was established in 2002.

Superior Sound owns a 5,606sqm factory in Dongguan, Guangdong. The facility is equipped with mold tooling machinery, plastic injection machines, metal presses, plastic grinders, a metal cutting machine, pad printers, spray painting machines, frequency testing rooms and testing kits. With its own mold tooling machinery, Superior Sound is able to develop unique molds for all of its car audio products. Its car DVD players undergo four levels of quality testing before leaving the factory. The company also provides packaging design services to its clients.

About 800 workers report to the company's six production lines, where 50,000 car audio products are turned out monthly. Ninety percent of Superior Sound's output goes to ODM customers and 10 percent bears its Sound Xtreme and Super-Sound brands.

Anson's factory complex in Hangzhou, Zhejiang, covers an area of 108,150sqm and employs 3,300 employees, including 375 R&D professionals. It is certified under the ISO 9001 standard and is equipped for vertical integration. Every critical phase in the production of car DVD players is carried out in-house, including production of some parts and components such as optical pick-ups and mechanical systems.

Anson's monthly production capacity is about 50,000 units, which, as of Q1 2008, was 30 percent utilized. "The utilization is still relatively low because we have been promoting our own line of car DVD players for only a few months. We expect to eventually adjust our production capacity even higher as the orders come in," said Lo.

Sysgration Ltd, among Taiwan's active suppliers of car A/V systems, churned out 2,000 flip down car DVD players on average per month in 2007. It projects that its output of combo DVD products will be less this year amid higher demand for lower-priced standalone car monitors in response to the growing number of in-vehicle media servers. Sysgration used to focus on the original equipment sector but since 2007 has been offering products for the aftermarket. Its R&D center in Taoyuan has about 30 members, with the number expected to increase this year.

Established in 1974, car electronics specialist Maxwell Co. Ltd offers a wide range of products, including car monitors, car DVD players, rear view systems and car GPS. For car DVD players, the company focuses on the production of 7in models. Its average production for car DVD players is 1,000 units. The maker's product development focus, however, is more on car safety products.

Sunny Bright Electronic Co. Ltd offers car multimedia products targeted at the aftermarket and employs four R&D engineers for this sector. Car DVD players with and without LCD monitors account for 70 percent of the company's total production. On a monthly average, Sunny Bright produces 1,000 car DVD players. Models with 6.5in or 7in touchscreen displays dominate its LCD line. Part of the company's future product development focus is the integration of GPS navigation into its products.

Exports represent 20 to 25 percent of Sunny Bright's sales revenues. The company's overseas markets include the United States, Thailand and Malaysia.