Toyota to Drop Denso as Nav System Supplier

Toyota Motor Corp. is phasing out Denso Corp. as one of its suppliers of in-car navigation systems, according to The Nikkei, which cites no sources.

The Tokyo-based newspaper reports Denso has stopped developing nav systems for Toyota's Japanese models and will stop supplying the carmaker entirely in five years. Toyota also buys nav systems from Aisin AW, Fujitsu Ten, Panasonic and Pioneer.

Nav system shipments within Japan fell to 5.5 million units in 2014, the second decline in two years, according to the Japan Electronics and Information Technology Industries Assn. Analysts note that many consumers prefer to rely on smartphone apps or use less expensive aftermarket nav devices.

Denso will continue to make current-generation nav systems for other carmakers and aftermarket supplier JVC Kenwood, The Nikkei says. Denso intends to slowly shift its product focus to vehicle cameras and driver aid systems, according to the newspaper.