• TCU sales in China grew 16% YoY in Q1 2025, driven by the robust growth of key domestic players.
• China remained the largest market for telematics control units (TCUs) in Q1 2025, accounting for 32% of global TCU sales.
• Domestic suppliers now command nearly 58% of the Chinese TCU market, as local innovation and partnerships with OEMs outpace global competitors.
• China remained the 5G TCU leader with an 82% market share globally, propelled by the aggressive integration of advanced connectivity solutions by key OEMs.
• LG led the Chinese TCU market, but BYD witnessed the highest growth (98% YoY) among the top five TCU players.

Seoul, Beijing, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – June 19, 2025

Telematics control unit (TCU) sales in China increased 16% YoY in Q1 2025, driven by the robust expansion of domestic automakers and their accelerated rollout of connected vehicles, according to Counterpoint’s latest Global Telematics Control Unit (TCU) Tracker. China maintained its dominance in the global TCU market in Q1 2025, accounting for 32% of global TCU sales.

China TCU Sales Share by Vendor Origin, Q1 2025

Source: Counterpoint Research Global TCU Tracker, Q1 2025

Chinese automakers are gradually implementing modular TCU designs that integrate cellular connectivity with V2X communication modules, driven by government smart city initiatives and the need for real-time vehicle-to-everything communication. While most vehicles still use standalone TCUs positioned behind the dashboard or in the trunk, there is a gradual trend toward closer integration with central compute domains to reduce latency and improve data processing efficiency.

Commenting on the trend, Greg Basich, Associate Director at Counterpoint, said, “China's TCU evolution is redefining the global connected car landscape. The convergence of 5G, V2X, and modular architectures is enabling Chinese OEMs to deliver next-level smart mobility experiences at scale.”

5G connectivity is seeing widespread adoption in new Chinese vehicle models, propelled by the aggressive integration of advanced connectivity solutions by top OEMs and rapid 5G infrastructure deployment across the country. China has maintained its leadership by capturing 82% of global 5G TCUs in cars sold during the quarter.

The competitive landscape is rapidly shifting as domestic players gain ground. LG maintained its top position despite its market share declining to 18% in Q1 2025 from 19% in Q1 2024, driven by increased competition from local suppliers in China and OEMs' growing preference for domestic partners. This decline reflects broader challenges faced by international TCU players due to price competition and OEMs' efforts to build in-house ecosystems with local supply chain partners. Meanwhile, Chinese suppliers, such as BYD Auto Group’s subsidiary, BYD Electronics, are posting remarkable growth. BYD Electronics registered the fastest growth, with a 98% YoY surge in TCU sales, driven by its rapid expansion across domestic and international markets and strategic focus on embedding advanced connectivity features across BYD’s EV lineup.

Commenting on BYD’s growth, Shaochen Wang, Research Analyst at Counterpoint, said, “BYD’s rise in the connected vehicle domain reflects a broader trend among Chinese automakers – the drive to deliver differentiated, tech-forward mobility experiences.” With Chinese consumers increasingly prioritizing smart, connected features in their vehicle purchases, OEMs are racing to innovate and scale their vehicles’ telematics capabilities.

China’s domestic suppliers now command nearly 58% of the country’s TCU market, as local innovation and deep integration with OEMs outpace global competitors. "With over 80% connected car penetration and every new car expected to have embedded connectivity by 2028, China's TCU market is not just about volume – it is about setting the pace for software-defined, service-centric vehicles worldwide," noted Abhilash Gupta, Research Analyst at Counterpoint.

As China continues to lead the global transition toward intelligent mobility, the role of TCUs is becoming more critical than ever. With continued investments in 5G infrastructure, smart city initiatives, and automotive software platforms, the country is well-positioned to set global benchmarks in connected car technology and TCU adoption in the quarters ahead.

* Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Telematics Control Unit Tracker, Q1 2025’ report is now available for purchase at report.counterpointresearch.com.

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