On April 7, Red Star Capital reported that several consumers have complained on platforms about the limitations of connected car features due to the shutdown of 3G networks, affecting brands including Great Wall Motors’ Haval and Wey, Chery New Energy, Dongfeng Honda, and Jianghuai Automobile.
In response to this situation, 4S dealerships have proposed that consumers pay for the replacement of the 4G module (T-Box). Consumers believe that the automakers should bear some responsibility for the 3G network shutdown and cover the corresponding upgrade costs.
The official customer service of the aforementioned automakers stated to Red Star Capital that the limitation of connected car features due to the 3G network shutdown is not a quality issue, and if the vehicle is out of warranty, consumers must pay for hardware upgrades.
Industry insiders pointed out to Red Star Capital that after the national announcement of the 3G network shutdown, if automakers continue to use 3G networks, they should bear some responsibility; furthermore, if automakers fail to inform consumers about the risks associated with the 3G network shutdown, they may infringe on consumers’ right to know.
Reference image from Visual China
3G Network Shutdown Causes Limitations in Connected Car Features for Multiple ModelsOwners Must Pay for 4G Hardware Upgrades
In February 2018, Mr. Wang purchased a Great Wall Motors Haval H6. In March of this year, the telecommunications operator began shutting down the 3G network, causing the vehicle’s remote control feature to become unusable. “I bought the smart version of the model specifically for the remote control feature, which was supposed to be free for life. After the issue arose, the manufacturer first directed me to contact the telecommunications operator, claiming it was their problem, and later told me to pay one or two thousand yuan to replace the network module.”
Mr. Wang believes that 4G networks have been widely available since 2018, and Great Wall Motors used the telecommunications operator’s 3G network to save costs without informing consumers of the risks associated with the 3G network.
Mr. Zhou purchased a 2021 Chery Little Ant in 2020 and recently discovered issues with the vehicle’s connection to the mobile app due to the built-in 3G network module being unable to connect. The after-sales department refused to replace the parts for free, citing that the warranty period had expired. “If I had consulted the 4S store during the warranty period, I might have been informed and could have replaced it with a 4G network part for free. However, the specific shutdown date for the 3G network was not announced in advance. Moreover, the vehicle’s connected device is not damaged and is not a consumable part, so refusing to replace it based on the warranty expiration is clearly unfair. This issue actually stems from the cooperation problem between Chery and the operator, and should not be borne by the user,” Mr. Zhou said.
Many owners of Great Wall’s Wey VV7, VV5, Honda CR-V, and Jianghuai iEV6E, iEV7S are facing the same problem. Consumers who have complained believe that the 3G network shutdown should be resolved through communication between the manufacturer and the operator, and that owners should not have to pay for it; the manufacturer should upgrade or replace the relevant equipment for affected vehicles for free.
Screenshot from the Car Quality Network
In response, Red Star Capital contacted the relevant personnel from the aforementioned brands, but as of the time of publication, no effective information was received. Among them, a representative from Great Wall Motors stated to Red Star Capital: “Due to the Ministry of Industry and Information Technology’s issuance of the ’14th Five-Year Plan for the Development of the Information and Communication Industry’ in November 2021, which clearly proposed to accelerate the shutdown of 2G and 3G networks, various network operators have gradually reduced the frequency of 3G networks for the construction of 4G/5G networks, which may cause 3G network lag and disconnection. Customers in need can pay for the upgrade to 4G networks, and the specific upgrade process can be consulted with local dealers.”
It is worth mentioning that there is no unified standard for upgrade costs. The official customer service of the aforementioned brands stated to Red Star Capital that the upgrade costs are determined by local service providers. Mr. Wang stated that the upgrade cost quoted by his local 4S store is 1200 yuan, while Mr. Zhou’s is just over 1000 yuan.
Do Automakers Bear Responsibility?Who Should Bear the Cost of Hardware Upgrades?
Additionally, the official customer service of the aforementioned brands stated to Red Star Capital that the limitation of connected car features due to the 3G network shutdown is not a quality issue, and consumers need to pay for hardware upgrades.
Chery New Energy’s official customer service stated that if the vehicle is within the warranty period (3 years or 60,000 kilometers) and the network has not been interrupted, the T-BOX can be replaced for free; if it is out of warranty or the network has been interrupted, the consumer must pay for the replacement. Dongfeng Honda’s official customer service stated that the 3G shutdown only affects the map navigation function, and owners can download offline maps in cities where 3G networks are still available.
The focus of the dispute between consumers and automakers is whether the automakers bear responsibility for the limitations of connected car features due to the 3G network shutdown, which determines who should bear the cost of hardware upgrades.
As early as October 2019, Wen Ku, then Director of the Information and Communication Development Department of the Ministry of Industry and Information Technology, stated at a press conference that the conditions for the shutdown of 2G and 3G networks in China have gradually matured, encouraging operators to actively guide users to migrate to new networks.
In November 2021, the Ministry of Industry and Information Technology clearly proposed to accelerate the shutdown of 2G and 3G networks in the ’14th Five-Year Plan for the Development of the Information and Communication Industry.’
On November 29, 2023, the Ministry of Industry and Information Technology responded to issues related to the shutdown of 2G/3G networks on the People’s Daily leadership message board. The Ministry stated that the shutdown of 2G/3G networks is an inevitable choice for the upgrade of mobile communication networks and is also the main practice internationally. However, the shutdown of mobile communication networks is not a simple matter of “just shutting down.” It is necessary to improve user protection measures and ensure user rights before implementing the shutdown.
Automakers attribute the problem to the external factor of the operator’s network shutdown. In this regard, automotive industry analyst Wang Guoxin told Red Star Capital: “In my personal understanding, after the announcement of the 3G network shutdown, the automakers that continue to use it should be responsible for it.”
Beijing Dacheng Law Firm lawyer Zhang Jie stated that consumers purchase a complete set of products and services provided by the enterprise, rather than signing directly with the operator, thus the enterprise has an obligation to ensure that the product functions are compatible with the technical environment.
Sichuan Fangce Law Firm lawyer Guo Gang pointed out to Red Star Capital that enterprises should consider the trend of technological development. In light of the national announcement of the 3G network shutdown, if automakers fail to inform consumers of the potential risks of the 3G network shutdown during the sales process, they may infringe on consumers’ right to know. “Some consumers may not have chosen this product if they had known that the 3G network would be shut down in the next two to three years, affecting some functions of the connected car.”
Lawyer Guo Gang believes that in this case, automakers should provide some compensation or discounts when offering upgrade services for the vehicle’s communication system.
Red Star News reporter Wu Danruo
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