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Come March 2008, and you could own a personal navigation device for less than Rs 10,000.
An expected reduction in import duty for such devices in the coming budget session is expected to almost halve the prices of PNDs that currently sell for around Rs 20,000 on an average -- the import duty of over 30 per cent accounting for a major chunk of the cost.
A PND is a portable electronic product which combines a positioning capability such as Global Positioning System (a worldwide radio-navigation system that was developed by the US) and navigation functions.
The earliest PNDs were handheld GPS units which were capable of displaying the user's location on an electronic map. Today, the term PND has come into widespread use with the growing popularity of navigation devices for automobiles.
"Duty comprises about 30 per cent of the total cost, core hardware is about 20 per cent of the cost, while map content and memory constitute the rest of the cost, " explains Ashutosh Pande, managing director of SiRF Technologies, which makes microchips and software for global positioning system.
"The duty on such a service on mobile phones has been reduced to about 4 per cent, making it affordable," says S P Singh, country head, Voxtel Telecom adding: "We expect the government to do the same for PNDs as well. Rise in the demand for this product will also lead to a reduction in the price of map content, making PNDs more affordable."
Voxtel recently entered the Indian market with its Carrera range of PNDs, priced between Rs 15,000 and Rs 20,000. Voxtel has already tied up with retail chains like Croma and Reliance Retail.
Available at an average price of Rs 20,000, these machines help you track your desired destination by linking your position to tracking satellites and sophisticated software-linked maps through GPS. Mobile phone companies too have cashed in on this opportunity.
Mobile phones like the Nokia N95, Nokia E90, BlackBerry 8800, BlackBerry 8820 and BlackBerry 8830 (on Airtel) are GPS-enabled. The latest generation of PNDs have sophisticated navigation functions and feature a variety of user interfaces including maps, turn-by-turn guidance and voice instructions.
To reduce total cost of ownership and time to market, most modern PND devices, such as those made by Garmin, Mio Technology or TomTom International, are running an off-the-shelf embedded operating system such as Windows CE or Embedded Linux on commodity hardware with original equipment manufacturer versions of popular PDA Navigation software packages, such as TomTom Navigator, I-GO 2006, Netropa IntelliNav iGuidance, or Destinator. Other manufacturers like Garmin and Magellen prefer to bundle their own software developed in-house.
But why would a consumer opt for a separate device when he already has a cellphone? "The answer is simple," explains Rohan Verma, head, MapmyIndia.com: "The screen size of a mobile phone does not provide optimum viewing while driving. Also a mobile phone cannot be shared with others."
"India is a huge potential market for PNDs, most of the demand for this product comes from people who have travelled abroad and seen the device. There demand from gadget-savvy people or consumers who want to purchase high-end devices," says Amit Prasad, CEO, SatNav Technologies, manufacturer of GPS enabled navigation devices.
"We will soon introduce our Rs 12,000 PND in the Indian market," claims Prasad, "and with the duties expected to decline, this cost will further be brought down in the coming year," he adds.
SatNav is a major provider of map content for various navigation devices. Prasad further explains, "the relatively high price of map content is due to the royalty we have to pay to our partners; however, this is also declining at a fast rate, we expect is to come down to half in the near future."
Verma is however sceptical of the sub Rs 10,000 of the other industry players. He says: "For a comprehensive package on the PND that we provide, this price can only be achieved in the next 3 to 4 years."
MapmyIndia recently introduced its "Navigator" priced at Rs 21,000. Verma predicts the prices to come to a Rs 15,000 level by the end of next year, but the company's that claim to provide these devices at sub Rs 10,000 levels will not provide optimum quality or an all-India package.
"This year, when 30-35 million of these gadgets were sold globally, only 20,000 units were sold in India. Next year the global figure is expected to reach 50 million, and industry estimates show that about one million of these devices are expected to be sold in India," says Pande. Big players, like
Hewlett-Packard and Nokia also seem to waiting for duty cuts and a rise in the demand for this product to enter this market, adds Pande.
The navigator has some add-on features as well -- storage space for movies, music, a calculator and games. The company is also in talks with leading auto-makers to offer it as part of a car's standard features. To make the product more attractive to the buyer, it can also double up as an MP3 player.
