Shanxi Securities: eCall product has a broad market space, waiting for the implementation of national standards to bring volume expectations

According to the Zhitong Finance APP, Shanxi Securities released a research report stating that the eCall standard has gradually been implemented in the Eurasian Economic Union, the European Union (EU), and the United Nations Economic Commission for Europe, among others. Policy-driven initiatives will create a favorable environment for the promotion of the eCall system. After nearly a decade of exploration and attempts, China's mandatory national standard for in-vehicle emergency call systems has been officially released and will be fully implemented starting July 1, 2027. The implementation of the eCall national standard is similar to the previous rollout of the in-vehicle ETC standard. It is estimated that if the eCall mandatory standard is successfully implemented, the market space for eCall products in China is expected to reach USD 1.714 billion and USD 1.729 billion in 2027 and 2030, respectively.

The main viewpoints of Shanxi Securities are as follows:

eCall serves emergency rescue during accidents, and NG-eCall may become the mainstream solution

The eCall automotive emergency call system is the third generation of automotive life safety systems following seat belts and airbags. It can provide rescue services to users in emergencies, including GNSS vehicle positioning, data uploading, and voice calls. Currently, the eCall system has gradually become a global standard, widely applied in many countries and regions, and has become a key tool for improving rescue efficiency and ensuring driving safety. With the development of mobile communication network technology from 2G/3G to 4G/5G, eCall solutions are also gradually evolving from CS-eCall to NG-eCall. Compared to CS-eCall, the core advantage of NG-eCall lies in its support for concurrent VoLTE voice and data, which can significantly reduce call setup latency and also obtain static and dynamic images and audio information from the scene during remote rescue.

eCall has become a national standard automotive functional safety component in multiple regions, effectively reducing traffic accident mortality rates

The eCall standard has gradually been implemented in the Eurasian Economic Union, the European Union (EU), and the United Nations Economic Commission for Europe, among others. Policy-driven initiatives will create a favorable environment for the promotion of the eCall system. After nearly a decade of exploration and attempts, China's mandatory national standard for in-vehicle emergency call systems has been officially released and will be fully implemented starting July 1, 2027.

The vision of "zero deaths" is influencing road traffic transformations in multiple countries and cities worldwide. As a key automotive functional safety component, the application of eCall is of significant importance for Europe to achieve its goal of halving road traffic deaths by 2030, and it is also urgent and necessary for reducing the number of deaths and injuries from traffic accidents in China.

As China's mandatory national standard for eCall gradually takes effect, "Vehicle and X + eCall" will continue to ensure safe travel for autonomous driving. The advantages of eCall in providing emergency rescue services, enhancing safety confidence, and offering safety data support will play a greater role.

The eCall product market has broad prospects, awaiting the implementation of national standards to bring volume expectations

The implementation of the eCall national standard is similar to the previous rollout of the in-vehicle ETC standard. Therefore, a prediction of the market performance of eCall after the national standard rollout was made by comparing it to the penetration rhythm of ETC. According to Shanxi Securities, if the eCall mandatory standard is successfully implemented, the market space for eCall products in China is expected to reach USD 1.714 billion and USD 1.729 billion in 2027 and 2030, respectively International giants occupy major shares of the global market, and the implementation of national standards is favorable for the increase in domestic manufacturers' shares

The realization of eCall functionality relies on the remote information processing capabilities of T-BOX/TCU, thus the competitive landscape of T-BOX/TCU can to some extent reflect the competitive state of the eCall market. The competitive landscape of T-BOX/TCU is characterized by international giants such as LG, Continental, and Harman occupying major shares in the global market, while domestic manufacturers like Neusoft Group, Huawei, and BYD continue to enhance their competitiveness in the Chinese market. Given the significant advantages domestic manufacturers have in price competition and the internal ecosystem construction of local car manufacturers, it is expected that the implementation of the eCall national standard will further benefit the market share of domestic manufacturers.

Investment Recommendations

Currently, China's mandatory national standard for in-vehicle emergency call systems is in the "upcoming implementation" stage. It is recommended to focus on T-Box suppliers that have eCall certification or support eCall functionality (such as Neusoft Group (600718.SH), Huizhong Technology (301321.SZ), Gaoxin Information (300098.SZ), Jingwei Hirain (688326.SH), Hopechart (688288.SH), Qiming Information (002232.SZ), etc.), and to pay attention to the business layout and product innovation of other T-Box suppliers represented by Desay SV (002920.SZ) in the eCall field.

Risk Warning

Risks of policy changes in the eCall industry; risks of fluctuations in chip supply in the automotive industry; risks of intensified market competition; risks of international trade policies