Sierra Inc. Partners with PATEO to Penetrate Chinese Market

Published Date : Jul 13, 2016

China is a difficult market for a majority of the international firms across various sectors. For the automobiles manufacturers, the presence of stringent government norms, coupled with intense competition from the domestic players who impersonate the original models of cars, it has been a struggle for a majority of international car manufacturers in China. Furthermore, customers prefer the cheap price of cars manufactured by the domestic players as compared to the higher prices of the original models. As a result, a number of international car manufacturers have made a beeline for partnering with domestic players in China to expand their business across the largest automobile market worldwide.

Geely Automobile Reports an Increase in Sales Volume in First Half of 2016

The latest in this queue of international wireless network players is Sierra Wireless Inc. The company’s uneven revenue has been a cause of concern among the investors. However, with the latest announcement about partnership with Shanghai-based connected car solutions company PATEO, Sierra is anticipated to regain the confidence of investors. PATEO has chosen Sierra’s AirPrime AR series modules for enabling cellular activity across its telematics units that are being installed in vehicles in China. Domestic automobile manufacturer Geely Automobile is the first automaker deploying PATEO’s telematics units in its vehicles.

While investors are yet to understand the impact of this partnership in terms of share prices, Geely Automobile has reported a 11% rise in its sales volume in the first half of this year. Nevertheless, the partnership between Sierra and PATEO is anticipated to be a success in the Chinese automobile market.