(Reuters) - Telenav Inc said on Thursday General Motors (NYSE:GM) Co's partnership with Alphabet's Google to power its vehicles' navigation and other infotainment functions does not alter its contract with the carmaker.
General Motors (GM) said on Thursday it will use embedded Google technology to power navigation, voice activated controls and other vehicle infotainment functions starting in 2021, in a win for Alphabet (NASDAQ:GOOGL) Inc in the race with Amazon.com (NASDAQ:AMZN) and other technology companies to control dashboards.
Telenav, which provides navigation services to automakers such as Ford Motor (NYSE:F) Co and General Motors, said it does not expect GM's decision to affect its internal operating forecasts for fiscal years 2020 and 2021.
"Telenav has a strong and ongoing relationship with GM, with a contract effective through model year 2025," the company said.
The Santa Clara, California-based company, which has been gaining market share within GM, indicated that the trend of increasing revenue from the automaker could stop after 2022. The company generated 18% of its revenue in fiscal 2019 from the U.S.-based carmaker.
"Telenav has been gaining market share within GM while increasing revenue from GM, and Telenav expects this trend to continue up to the model year 2022," Telenav said in a statement.
General Motors has no obligatory purchase requirements from Telenav under the contract ending 2025, the navigation solution provider said. The agreement states that GM can offer Telenav's navigation solution in its vehicles through 2025.
Telenav shares plunged as much as 48.4% following GM's announcement.