TomTom, a Dutch digital navigation and mapping consumer products company, has suspended its revenue target for 2025.
The company said it would not be able to meet its $654m location technology revenue target for 2025, following a slow down in demand for new cars.
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In an earnings statement, CEO Harold Goddijn said: “A combination of downward revisions for near-term car production volumes and delays in new model introductions has resulted in a generally less predictable market environment.”
TomTom also said its 2024 sales will likely be at the lower end of its previously estimated range.
In an interview with Reuters, finance chief Taco Titulaer said: “There’s nothing fundamentally going wrong here, but there are some headwinds in automotive that’s affecting our revenue, in the short term.”
TomTom’s automotive location technology arm sales fell to $95.2m in the second quarter, marking a 4% decrease.
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By GlobalDataAccording to GlobalData’s company profile on TomTom, autonomous vehicle localisation algorithms were a key innovation area identified from the company’s recent patents.
A recently granted patent from TomTom outlined a method for generating traffic data within a navigable network covered by an electronic map, according to GlobalData.
The method involves obtaining positional data from devices moving along segments of the electronic map, estimating average penetration rates for congested and non-congested segments, and using this data to determine traffic volume and density.
