TomTom has announced that it is increasing its stake in its Indian joint venture from 60% to 90%. This step underlines TomTom’s commitment to strengthening its presence in India. The company will be renamed TomTom India Ltd. (previously Tele Atlas Kalyani India Pvt Ltd.)
“This decision is important for TomTom to further grow our presence in an increasingly significant emerging market for us. At TomTom we are committed to rolling out our products and services into new markets.
India in particular, with its largely untapped car navigation market, represents a growing opportunity for us and this increased investment in our majority owned subsidiary together with our high quality Indian map database and our state of the art navigation technology will give us a greater ability to deliver on this,” says Alain De Taeye, Member of the Management Board TomTom.
The company noted that India has a population of 1.2 billion but only has 22 million cars on the road. New car sales are forecast to grow from 2.5 million in 2010 to 4 million annually by 2015.