Tencent is releasing a voice-activated version of WeChat optimized for cars
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Chinese technology giant Tencent is releasing a voice-activated version of WeChat that's optimized for vehicles, per South China Morning Post. Tencent is joining forces with one of China's top four automobile groups, Changan Automobile, to embed WeChat Car Edition in the steering wheels of new car models hitting the market later this year.
The tailor-made app will enable drivers to use the button on the steering wheel or voice commands to complete many of the most commonly used functions in a driving environment, including checking unread messages, sending messages, making voice calls, and using navigation from Tencent's Maps service.
We expect Tencent will continue to expand WeChat Car Edition's footprint by entering more auto partnerships down the road, and given China is the world's largest automobile market, Tencent is pegged to reach a massive addressable audience in the car.
Tencent making a move to further entrench itself in the automotive space is part of a growing trend among big tech firms. The deals we've seen in 2019 include Apple partnering with Porsche to integrate Apple Music into the Taycan; Amazon partnering with BMW and Audi to put its Alexa voice assistant in infotainment consoles; and Polestar launching an electric vehicle (EV) which will run Android Automotive OS provided by Alphabet.
For big tech firms, there is a clear benefit to being integrated into the in-car experience - it's where consumers can be found. Consumer time spent in cars has risen: In the US, drivers spend 8 hours in cars per week, a 33% increase from 2016. For companies like Google and Tencent, which have ad-based business models that rely on monetizing user attention through "free" services, they can leverage location data to provide users with hyper-personalized ads. For Amazon and other e-commerce companies, a voice assistant in the car enables users to make purchases more seamlessly.
However, this relationship isn't one-sided - automakers can also benefit from working with big tech firms. Consumers around the world have become accustomed to being consistently connected, leading them to seek out digital experiences regardless of where they may be.
This, in part, has led to the rise of the connected vehicle where consumers can continue consuming media and using their digital services without interference - connected car sales will comprise nearly 65% of all car sales in the US as soon as 2020, and over three-quarters of all US car sales by 2024, according to estimates from IHS Markit cited by The Wall Street Journal. By working with big tech firms to integrate their popular products and services automakers can continue to meet the digital needs of potential customers.
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