According to a Nikkei report, Toyota will cut Denso from its list of navigation system suppliers amid weakening demand for the devices.
The report said that Denso has stopped developing routing-based navigation systems for Toyota’s domestic models, and plans to stop supplying the systems within five years. It said Toyota currently buys the navigation systems, installed at plants or by dealers, from Denso, Aisin AW, Panasonic, Pioneer and Fujitsu Ten.
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The report added that due to high rates of fitment of navigation systems in vehicles in Japan, growth prospects are limited.
Nikkei said that domestic shipments of the devices totalled 5.45m units in 2014, the second year of falling volume.
The report added that the overseas OE market for such devices is also slow, with users increasingly opting for low-cost aftermarket devices or navigation apps on smartphones, rather than factory fitted devices.
Denso will, however, continue to produce its current line of systems for automakers other than Toyota – such as GM.
