While Pioneer has been bleeding in the plasma market they have had a lot of success in the car electronics business as consumers demand better navigation and entertainment in their vehicles. Now the company has announced plans to grow their car business with car navigation systems being a key focus.
Pioneer say that they will bolster in-car telematic functions as phones and the Internet, become mainstream in motor vehicles and with navigation systems.
This they claim is part of their plan to transform car navigation systems into comprehensive in-vehicle information terminals.
The company has also revealed that they are developing new in-dash car navigation systems with built-in audio/video functions that feature connectivity with peripheral electronics and innovative device operability. We are developing a “light” platform that will be rolled out globally they say.
They said “In OEM car navigation systems, we will concentrate on winning contracts for assembly line products worldwide for automakers. At the same time, we will grow business in the domestic dealer options market.”.
Through these measures, Pioneer aims to expand the scope of its car navigation system business as a whole. In car audio/video products for consumer markets, we will compensate for contraction in developed countries’ consumer markets by actively responding to rapid market expansion in the BRICs nations. Concurrently, we plan to maintain profitability and mitigate any decrease in unit prices by shifting our center of gravity from models equipped with CD players to those with DVD players. We also aim to maintain our market share by vigorously offering new value propositions that cater to various forms of media and networks.
The company believes that they can maintain an operating margin of 7% in this market.