Harman speakers on Tata Tiago and its future marketing strategy

for India/ Asia Pacific region

Harman International Industries, Incorporated, incorporated on January 31, 1980, is engaged in the
designing and engineering of connected products and solutions for automakers, consumers and
enterprises, including connected car systems, audio and visual products, enterprise automation solutions
and connected services. The Company's segments include Connected Car, Lifestyle Audio, Professional
Solutions, Connected Services and Other. The Company's brands include AKG, AMX, Crown,
Harman/Kardon, Infinity, JBL, JBL Professional, Lexicon, Mark Levinson, Martin, Revel, Soundcraft and
Studer. The Company's software solutions power mobile devices and systems that are designed to be
connected, integrated, personalized and adaptive across all platforms, from work and home, to car and
mobile. The Connected Car segment designs, manufactures and markets connected car systems for
vehicle applications to be installed primarily as original equipment by automotive manufacturers. Its
connected car platforms deliver enhanced and connected capabilities to the car, including intelligent high-
performance navigation with embedded solutions for multimedia, premium entertainment tuners, and on-
board and off-board connectivity that addresses a range of vehicle categories. It offers an integrated suite
of technologies that extends beyond infotainment to encompass telematics, connected safety, and over-
the-air update capabilities. It also offers a suite of automotive cyber security solutions through a multi-
layer architecture.

Collaborator

Harman, which recently started operations at its manufacturing facility in China, is shifting some plants to
so-called BRIC nations - Brazil, Russia, India, China - to lower its costs and increase margins. Harman
does engineering work for audio systems for BMW and Audi from a research and development center in
Bangalore. Harman, co-founded by stereo magnate Sidney Harman, plans to invest tens of millions of
dollars in engineering in India, seeking to develop audio systems that will fit local consumers price
requirements.

The company has been acquired by Samsung electronics in November 2016. The transaction highlights
Samsung's efforts to break into the high-barrier automotive industry where it has little track record and
also marks a strategic shift for the electronics company, which has previously shunned big acquisitions.
The transaction highlights Samsung's efforts to break into the high-barrier automotive industry where it
has little track record and also marks a strategic shift for the electronics company, which has previously
shunned big acquisitions. Harman earns around two-thirds of its revenue from its automotive-related
business, and its automotive order backlog as of end-June stood at $24 billion, more than three times
annual sales of $6.9 billion in fiscal 2016.

Climate/Context:

The world In-car infotainment market is segmented on the basis of installation type, components, end
user, and geography. Based on installation type, world in-car infotainment systems market is segmented
into OEM and aftermarket. The segment OEM installation dominates the global market in terms of
revenue and is expected to maintain this trend throughout the forecast period, owing to technological
advancements in the automotive electronics industry. Market is categorized as hardware and software
based on components. Hardware is one of the major components of in-car infotainment system and
software is expected to dominate the market owing to faster performance, interactive voice recognition,
intuitive touch screen, and swift graphical interface. Hardware market is further sub segmented into four
different types namely, audio unit, display unit, connectivity and others. The other segment includes
climate control, Bluetooth and interactive voice recognition (IVR). The world in-car infotainment market
is segmented on the basis of geographical regions, encompassing North America, Europe, Asia-Pacific
and LAMEA. Europe accounted for the largest share of the global market, owing to higher per-capita
spending on luxury cars. However, Asia-Pacific would be the fastest growing region due to increased
demand for advanced cars.

Presently, the in-car infotainment market is largely driven by growth strategies such as product launch,
acquisition and partnership. Companies such as Audi AG, Visteon Corporation, Fujitsu, and Visteon
Corporation have launched new innovative car to attract more number of customers and increase their
market share.
Smartphone adoption has been the most prominent factor in proliferation of the in-car infotainment
market. Currently, the demand for advanced in-car infotainment system with mobile integration
technology is rapidly growing. This is one of the key reasons for the boom in the smartphone industry,
which is supporting the market growth. Smartphones act as a bridge between end user and infotainment.
Smartphone integration with in-car infotainment system have reduced product cost by leveraging existing
connectivity and processing power of mobiles. In addition to this, it also delivers easy access to the
downloaded applications. Therefore, it helps the consumers in keeping pace with the consumer daily
changing lifecycle.

With the rapid technological advancements, companies have enabled advanced features in latest in-car
infotainment systems. The amplified consumption and digital content creation within the vehicle is
driving the need for more sophisticated and connected in-car infotainment systems. However, lack of
seamless and uninterrupted connectivity is restraining the market growth, as there are still some areas,
which do not have proper connectivity. Hence, manufacturers are trying to present advanced mode of
connectivity in in-car infotainment systems. As a result, lack of seamless connectivity is expected to
reduce its impact in near future.

In-car infotainment is an advanced facility in vehicles. Companies are currently introducing customized
solutions for cars that satisfy customer-specific requirement. Today, end users demand personalized in-car
infotainment systems such as customized music, advanced suite of technology, entertainment services,
text messaging, smartphone integration facility and live audio streaming. Moreover, personalization
facility has become one of the important criteria for consumers while buying a car. Therefore,
personalization positively influences the market growth.
IN-CAR INFOTAINMENT MARKET SEGMENTATION

By Installation type

OEM

Aftermarket

By Components

Hardware

o Audio

o Display

o Connectivity

o Others
 Software

By Geography

North America

Europe

Asia-Pacific

LAMEA

Competition

Continental

Continental is one of the world's largest automotive manufacturing companies that manufactures,
develops, and sells passenger cars, light trucks, industrial tires, and other related products.

The company also specializes in tachographs, brake systems, tires, automotive safety, powertrain
components, chassis components, and other parts used for the automotive and transportation industries.
The company primarily is involved in the production of soft rubber products, rubberized fabrics, and solid
tires for carriages and bicycles.

Denso Corp.

Denso is another major vendor in the market with its infotainment solutions being adopted worldwide.
The company's voice-activated infotainment is being used in Ford automobiles. Its infotainment solutions
manage music, directions, emails, internet radio, and other infotainment features through advanced voice
commands. Denso's solutions also customize the touch-screen layout and download applications such as
Facebook, Pandora internet radio, and Flickr.

Bose Corp.

"The singular mission at the heart of Bose is to reproduce music as true to the original performance as
possible. That involves research, technology and a strong commitment to excellence. The research to
better understand what makes live music so magical began in world-class concert halls over 45 years ago.
We have become experts in how the acoustic space influences what we hearand in psychoacoustics, the
science of how humans perceive sound. This is especially important in an automobile."
Delphi Automotive plc

"Twenty-first century drivers want in-vehicle access to the information and entertainment they now have
at work and at home. Delphi is delivering that access, while helping drivers keep their eyes on the road
and their hands on the wheel. Delphi Venture Capital identifies, evaluates, and invests in innovative
companies with next generation automotive technology and those companies with non-automotive
technologies that can be brought into the vehicle to enhance Delphis existing offering of world class
products and technologies."