ABI Research's Latest Telematics Findings: Japanese Automakers Respond to Shifting Driver Demands as Europe Focuses on Portability

OYSTER BAY, N.Y.--May 2, 2005--The three main telematics service providers in Japan -- Nissan Carwings, Toyota G-Book and Honda InterNavi Premium Club -- have historically focused on delivering enhanced navigation and entertainment services to their customers' vehicles. Toyota recently introduced G-Book Alpha, a new component to its telematics service, marking, according to findings from ABI Research, a paradigm shift for the Japanese telematics industry.

"The revolutionary part of the new G-Book Alpha service is that automatic crash notification is finally available in Japan," says ABI Research analyst David Schrier. "In adding this safety feature, Toyota takes a page from OnStar's playbook. Not only will this drive adoption in Japan, but it positions G-Book to compete in North America, especially since Toyota has already expanded telematics services outside Japan."

One of the main challenges for Japan's big three in bringing telematics to North America is finding a communications system that is inexpensive but still offers near-ubiquitous coverage.

While Japanese automakers expand their telematics feature sets, European automakers are struggling to retain telematics subscribers with current business models.

In Europe, adds Schrier, the trend is toward basic systems that include traffic and navigation with pay-per-use pricing. European customers have mostly been unwilling to pay for factory-installed navigation in the presence of cheaper alternatives from the aftermarket, including server-based navigation.

European automakers are responding by offering portable navigation systems with limited telematics functionality. Two examples: Opel's Corsa Edition with TomTom GO, and Toyota Hub, featuring Pocket PC-based navigation. Both offer real-time traffic and other services via a Bluetooth connection to the driver's handset.

These findings are part of the latest edition of ABI Research's "Global OEM Consumer Telematics, Navigation and Infotainment Service", an in-depth analysis of global markets for telematics and all applicable technologies. Coverage includes shipments, revenues and penetration of embedded hardware and associated devices, plus major equipment forecasts for telematics control units, satellite radio, navigation, and GPS/Bluetooth-enabled handsets.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit www.abiresearch.com, or call +1.516.624.2500.