Toyota expects to install navigation systems on half the cars it sells in Japan by 2003.
Demand for telematics services is steadily increasing, said Hiroshi Morita, project manager in Toyota's information technology strategic management office.
Last year, 40 percent of Toyota cars sold in Japan were equipped with navigation systems. That's 10 years after Toyota introduced the technology.
Meanwhile, a Toyota experiment in Internet information technology in Japan involves 1,570 vehicles in Nagoya. Sponsors include Japan's ministry of economics, trade and industry; Keio university; Toyota-owned supplier Denso; and Japanese electronics giant NEC.
It is part of a five-year project aimed at making Japan one of the most advanced information-technology nations by 2005, Morita said.