Airbiquity said it will offer its wireless connectivity solutions to the telematics market In China, doing business as Ai Bi Ke Communications Technology Co. The firm established a satellite office in Chengdu.

“The Chinese market understands the need to integrate a host of features and functions into their telematics programs to differentiate their products,” said Airbiquity president and chief executive officer Kamyar Moinzadeh.

"The market opportunity for vehicle-centric information and communication technology (Vehicle ICT) offerings is growing rapidly in the Chinese market," added Thilo Koslowski, vice president, automotive and vehicle ICT at Gartner. "Mobile phone penetration in China will reach nearly 50% by 2010; furthermore we anticipate that by 2012 about 10% of all vehicles sold in China will be Vehicle ICT-enabled. This will provide the technology foundation to support innovative location, navigation and mapping services in the region."

Phil Magney, vice president and principal analyst of iSuppli Automotive Practice, noted, "While in its infancy, the telematics industry in China is poised for strong growth. The aftermarket telematics service provider (TSP) market is establishing a national presence with rising subscription rates.

“A growing automotive market is driving the need for traditional telematics services and several OEMs have announced plans to roll out their programs. These developments are creating favorable market conditions for a successful nationwide telematics service in China.”