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Tencent Sets Sights on the Large IoV Market and Is Developing WeChat for Vehicles

At the World Intelligent Connected Vehicles Conference, Ma Huateng stated that Tencent is developing In-Car WeChat, along with WeChat Mini Programs, but it has not yet been launched to ensure safety. In fact, as more people live online, user demand for In-Car WeChat has been growing. Not only have automakers inquired Tencent about the launch progress of In-Car WeChat, some have even built their own versions by accessing the Web WeChat interface, which certainly cannot guarantee driving safety.

In fact, for Tencent, the development of In-Car WeChat is not only to meet users’ needs in more usage scenarios, but also expected to serve as a key part of Tencent’s strategy for single-vehicle intelligence and the Internet of Vehicles (IoV). At a time when in-car systems such as Banma System and Baidu’s DuerOS have been expanding in the market, Tencent must have its own judgment on whether In-Car WeChat will work for others or open up a market for itself. However, given the current development of Tencent IoV, how can In-Car WeChat help Tencent seize the IoV entry point?

Safety is the top priority; In-Car WeChat will inevitably become tool-oriented

The concept of In-Car WeChat itself means users use social communication services while driving. Based on common sense, such behavior carries potential risks. Therefore, the top priority for launching In-Car WeChat is to ensure safety; functions such as sending and receiving messages can only be considered on the premise of absolute security.

The development of In-Car WeChat is closely linked to Tencent’s IoV strategy. Laggard in high-definition maps, autonomous driving and other technologies, Tencent’s main chances to seize IoV opportunities lie in WeChat and Tencent Music.

Yet in driving scenarios, to keep drivers focused, In-Car WeChat must not disturb users excessively, especially by frequently pushing unimportant messages or content that requires manual operation. This means WeChat’s advantage in traffic diversion will no longer be obvious unless users actively request services.

However, if In-Car WeChat is installed on Baidu’s or Alibaba’s in-car systems, those systems will definitely not grant WeChat the permissions to access other Tencent-based services. This implies that a standalone In-Car WeChat can hardly control the entry to the in-car ecosystem, and Tencent will never allow In-Car WeChat to be integrated into other systems as a mere tool app.

This time, Tencent proposes sending and receiving messages through full voice interaction, integrated with in-car hardware, with essential operations controllable via steering wheel buttons. From this statement, it can be inferred that WeChat may be more than just a voice chat app; it will also be able to interact with system hardware. This may point to the development direction of In-Car WeChat — deep integration with in-car systems.

Empower in-car systems with WeChat, and control IoV entry through systems

Our demand for the in-car ecosystem entry is far beyond a communication tool. We also expect it to solve problems, trigger more services, including control of vehicle hardware, and so on. In-Car WeChat is only part of the functions we need; if tasked with more roles, it will essentially become an in-car OS with WeChat built-in.

1. In-car systems are the real entry point, and the battle has begun

At the current stage, in-car systems are undoubtedly a better entry point than WeChat. Take Alibaba’s Banma System 3.0 as an example: by eliminating APP fragmentation, Banma has created a "seamless scenario experience". Users no longer need to switch between apps; the AI makes judgments based on real-time scenarios to connect various services. This model of Banma 3.0 better fits driving scenarios, represents a development trend compared with traditional in-car systems, and can truly become a traffic entry for the IoV.

The competition for in-car systems to seize this entry has already started. Banma 3.0 is scheduled for release in 2019, applied not only to SAIC models but also open to more cooperative automakers. Baidu Apollo and DuerOS took action earlier, have partnered with a large number of automakers, and built brand awareness in technologies such as autonomous driving among the public.

2. With WeChat and Mini Programs, Tencent’s in-car system can also go APP-free

Although Tencent has also made efforts, its moves are less noticeable compared with Baidu and Alibaba. At present, Tencent IoV ecosystem has not yet got rid of APP-based limitations, though it is evolving, and the launch of In-Car WeChat will be completed by Tencent IoV. It is foreseeable that Tencent IoV will also move toward breaking APP barriers and connecting services in the future.

In breaking APP barriers, WeChat Mini Programs serve a similar purpose. Mini Programs have accessed a wide range of partners, adopt a unified account system, and support mutual redirection. When combined with Mini Programs and granted underlying system control capabilities, In-Car WeChat itself will become an OS; alternatively, WeChat and Mini Programs may be integrated into Tencent IoV services.

In addition, Tencent needs to enhance its AI capabilities. This requires deep integration between Tencent IoV and WeChat, as well as continuous breakthroughs in Tencent’s cloud services and AI technologies.

On the premise of accomplishing all the above, In-Car WeChat can become an important bargaining chip for the popularization of Tencent IoV. After all, the deep integration of Tencent IoV with WeChat means WeChat can only exert its maximum potential when embedded in Tencent’s OS, which may help Tencent secure a ticket to the IoV market.

By integrating WeChat and Mini Programs, Tencent IoV can build a closed-loop in-car ecosystem with Tencent-based services, making the system an IoV entry and thus catching up with Baidu and Banma’s in-car OS.

Autonomous driving can elevate In-Car WeChat’s entry status, while in-car OS will remain profoundly influential

The maturity of autonomous driving will bring greater changes to all this. By then, drivers’ attention will be partially liberated, and the significance of in-car OS will become even more prominent.

1. Changes in human-vehicle interaction allow WeChat to act as a traffic entry

After the maturity of autonomous driving, especially at L4 and L5 levels, human drivers will only need minimal intervention or no intervention at all. At this stage, intelligent transport reduces the requirement for drivers’ concentration, allowing them to focus on the screen and receive more information.

At this point, active push functions of In-Car WeChat will gradually mature, greatly enhancing its role as an entry. Of course, when in-car systems have already secured the entry, how much traffic In-Car WeChat carries will become less important.

2. In-car OS maintains high status and may shape the intelligent transport landscape of internet giants

The in-car OS will remain strategically important, as its core strengths will be demonstrated in vehicle-to-vehicle and vehicle-to-environment interactions. In the autonomous driving era, the strategic position of in-car OS will become increasingly prominent. The market share of Tencent’s in-car OS, built by integrating WeChat and Mini Programs, will be of great significance to Tencent’s IoV layout.

A rising market share of in-car systems will not only directly expand the application scope of Tencent-based services and boost its ecosystem, but also grant Tencent corresponding voice. In the era of intelligent transport, driving data must be interconnected to realize vehicle-road coordination.

However, a tripartite (or more) market pattern has led to fragmented driving data, with each player adopting its own standards. When formulating universal standards, priority will be given to enterprises with larger market shares for efficiency, indirectly endowing them with standard-setting power. Therefore, the competition for in-car OS will also affect the discourse power in future intelligent transport layout, and the market scale Tencent IoV can achieve will attract wide attention.

To sum up, In-Car WeChat alone may not be a desirable entry point; in-car systems are the proper gateway instead. Only when WeChat is fully integrated with the OS can the in-car system potentially help Tencent secure an IoV ticket, which is why Tencent attaches great importance to it. If standalone WeChat is to serve as an entry, it may only be possible in autonomous driving scenarios, where in-car OS will carry even greater significance for the competition among BAT in intelligent transport.