PND Makers Compete for Integration With Autos
The growing interest in inexpensive navigation solutions for low- and mid-range car models has fired up efforts by Portable Navigation Device (PND) market leaders TomTom and Garmin to penetrate the automotive head-unit market. This move has the potential to disrupt the traditional tier-one-centric supplier structure for in-vehicle navigation systems.
So far, the most common OEM deals for PND makers involved promotional option packages or deals that simply make the PND products available as an accessory at dealerships. However, the latest moves from PND makers go beyond the accessory or aftermarket as they strive to participate as the factory supplier of in-vehicle navigation systems.
Garmin Navigation
Following the launch of the Model Year (MY) 2011 Jeep Grand Cherokee at the 2009 New York International Auto Show, Garmin released details on the vehicle’s Garmin-powered navigation system. The system offers several features found on Garmin’s nuvi series of PNDs, including Lane Assist, which identifies the correct turn or exit lane; Junction View, which provides 3D graphical renderings of intersections and Where Am I?, which delivers one-touch access to a vehicle’s exact location and important nearby Points of Interest (POIs).
Other features available on the Jeep navigation system include Speed Limit & Current Speed and Chrysler-specific Customized Vehicle Icons. According to Garmin, the Jeep system is a company first to be installed for a passenger vehicle at the factory, since Garmin’s Ford Work Solutions on-board infotainment system was for commercial use.
While Garmin is the navigation software supplier of the UConnect system as a tier-two supplier, TomTom was involved as tier-one supplier for the Carminat TomTom navigation system.
Carminat-TomTom Embedded Navigation System
Meanwhile, a Carminat TomTom embedded navigation solution co-developed with Renault was showcased at the Geneva Motor Show this year. The Carminat TomTom offers embedded navigation with a 490 Euro ($651) price tag on Renault’s small to medium cars, such as the face-lifted Clio now going on sale in Europe.
TomTom developed the navigation and Renault provided the integration. As an embedded navigation first, users of the Carminat TomTom solution can update their navigation with the latest maps, safety cameras, Points of Interest (POIs) or voices via TomTom’s free desktop software TomTom HOME. They can download the latest content from the Internet onto an SD card which can then be installed in a slot next to the Carminat TomTom screen.
In the Clio, the device is operated with an independent controller. The larger cars will offer a fixed-button system on the central console as well. Renault plans to introduce the system next in the Scenic, Megane and Laguna.
OEM Relationship Benefits
While the business relationships between PND manufacturers and OEMs and their dealerships have been successful, according to Garmin, the automotive accessory distribution channel is more expensive for PND manufacturers than for major big-box electronic retailers. It also requires effort to forge exclusive deals with OEMs to supply their devices over the competitors.
However, the new business opportunities with automotive OEMs are huge. Even though the OEM business is still a small portion of overall business for PND companies, it is a growing portion of their revenue. According to published sources, Renault and TomTom plan to sell 1 million integrated navigation systems between now and the end of 2011, and after one year of exclusivity, Renault expects to see it in competitors’ cars.
TomTom now is in talks with several other OEMs both in Europe and the United States. According to the company, it is not only talking with new OEMs but also developing next-generation technology for current systems. TomTom said it is looking into having a connected device in the second-generation Renault system, which would allow for services like HD Traffic, TomTom Services, and possibly even some form of emergency calling. The company’s move into automotive was aided by its acquisition of a Siemens VDO navigation subsidiary in 2007.
Meanwhile, according to Garmin, its business as a tier-two navigation software supplier partnering with other automotive tier-one suppliers such as Panasonic, Mitsubishi Electronics, and Kenwood may see major OEM adoption in the near future. Once more details of the new 2011 Jeep system are revealed, we will be able to see what kind of integration roadmap Garmin is going after as a PND hardware/software manufacturer.
Automotive OEMs will try to utilize what the PND manufacturers bring to the table with their expertise in connectivity with more flexibility, additional features and services. Automotive OEMs also will be able to leverage PND navigation brand assets, as Renault asserted that European customers are much more familiar with the TomTom brand than other in-vehicle aftermarket brands.
For end-users, an affordable yet robust navigation experience is all that is wanted from the collaboration between automotive OEMs and PND manufacturers.
Moving forward, in-vehicle navigation users would benefit most from hybrid systems that offer dynamic content updates like the newer PNDs, with integration with the in-vehicle electronics system as well as additional sensors, i.e. odometer and gyro, for improved positioning, and enhanced device warranty along with the vehicle.
So far, the most common OEM deals for PND makers involved promotional option packages or deals that simply make the PND products available as an accessory at dealerships. However, the latest moves from PND makers go beyond the accessory or aftermarket as they strive to participate as the factory supplier of in-vehicle navigation systems.
Garmin Navigation
Following the launch of the Model Year (MY) 2011 Jeep Grand Cherokee at the 2009 New York International Auto Show, Garmin released details on the vehicle’s Garmin-powered navigation system. The system offers several features found on Garmin’s nuvi series of PNDs, including Lane Assist, which identifies the correct turn or exit lane; Junction View, which provides 3D graphical renderings of intersections and Where Am I?, which delivers one-touch access to a vehicle’s exact location and important nearby Points of Interest (POIs).
Other features available on the Jeep navigation system include Speed Limit & Current Speed and Chrysler-specific Customized Vehicle Icons. According to Garmin, the Jeep system is a company first to be installed for a passenger vehicle at the factory, since Garmin’s Ford Work Solutions on-board infotainment system was for commercial use.
While Garmin is the navigation software supplier of the UConnect system as a tier-two supplier, TomTom was involved as tier-one supplier for the Carminat TomTom navigation system.
Carminat-TomTom Embedded Navigation System
Meanwhile, a Carminat TomTom embedded navigation solution co-developed with Renault was showcased at the Geneva Motor Show this year. The Carminat TomTom offers embedded navigation with a 490 Euro ($651) price tag on Renault’s small to medium cars, such as the face-lifted Clio now going on sale in Europe.
TomTom developed the navigation and Renault provided the integration. As an embedded navigation first, users of the Carminat TomTom solution can update their navigation with the latest maps, safety cameras, Points of Interest (POIs) or voices via TomTom’s free desktop software TomTom HOME. They can download the latest content from the Internet onto an SD card which can then be installed in a slot next to the Carminat TomTom screen.
In the Clio, the device is operated with an independent controller. The larger cars will offer a fixed-button system on the central console as well. Renault plans to introduce the system next in the Scenic, Megane and Laguna.
OEM Relationship Benefits
While the business relationships between PND manufacturers and OEMs and their dealerships have been successful, according to Garmin, the automotive accessory distribution channel is more expensive for PND manufacturers than for major big-box electronic retailers. It also requires effort to forge exclusive deals with OEMs to supply their devices over the competitors.
However, the new business opportunities with automotive OEMs are huge. Even though the OEM business is still a small portion of overall business for PND companies, it is a growing portion of their revenue. According to published sources, Renault and TomTom plan to sell 1 million integrated navigation systems between now and the end of 2011, and after one year of exclusivity, Renault expects to see it in competitors’ cars.
TomTom now is in talks with several other OEMs both in Europe and the United States. According to the company, it is not only talking with new OEMs but also developing next-generation technology for current systems. TomTom said it is looking into having a connected device in the second-generation Renault system, which would allow for services like HD Traffic, TomTom Services, and possibly even some form of emergency calling. The company’s move into automotive was aided by its acquisition of a Siemens VDO navigation subsidiary in 2007.
Meanwhile, according to Garmin, its business as a tier-two navigation software supplier partnering with other automotive tier-one suppliers such as Panasonic, Mitsubishi Electronics, and Kenwood may see major OEM adoption in the near future. Once more details of the new 2011 Jeep system are revealed, we will be able to see what kind of integration roadmap Garmin is going after as a PND hardware/software manufacturer.
Automotive OEMs will try to utilize what the PND manufacturers bring to the table with their expertise in connectivity with more flexibility, additional features and services. Automotive OEMs also will be able to leverage PND navigation brand assets, as Renault asserted that European customers are much more familiar with the TomTom brand than other in-vehicle aftermarket brands.
For end-users, an affordable yet robust navigation experience is all that is wanted from the collaboration between automotive OEMs and PND manufacturers.
Moving forward, in-vehicle navigation users would benefit most from hybrid systems that offer dynamic content updates like the newer PNDs, with integration with the in-vehicle electronics system as well as additional sensors, i.e. odometer and gyro, for improved positioning, and enhanced device warranty along with the vehicle.
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