Sales of TomTom satellite navigation devices are expected to top 15 million this year, the company has said.
The Dutch firm said that despite the squeeze on consumer spending it believed motorists would continue to buy the products throughout the remainder of the year.
The announcement will be good news for retailers such as Redditch-based Halfords, as well as other High Street electricals, which are struggling to maintain any kind of sales growth.
The prediction is in line with forecasts made by Halfords when it announced its full-year results last month. The company said then that one of its major revenue-generators was its in-car audio and satellite navigation systems operation.
It said figures showed that with only 15 per cent of UK drivers owning a TomTom or similar device then there was plenty of scope for growth in this area. It also predicted that motorists with first generation devices would be looking to upgrade to the latest equipment.
In an interview with a Dutch newspaper, TomTom chief executive Harold Goddijn said: “The tendency in the first half of the year was clear: people are still buying our products.”
He added that while there were “uncertainties” over the second half, sales were still likely to be sustained.
Despite the forecast, the Dutch company’s share price has fallen sharply in recent months – similar to Danish firm Bang & Olufsen this is partly as a result of having to cut full year sales forecasts.
In April it cut its full-year sales forecast to £1.45 billion, down from £1.61 billion, which was also down on original estimates of £1.77 billion.
“But I would not sell my shares. Much better times will come,” said Mr Goddijn in a bullish response.
He added that TomTom was not losing market share in North America, but stressed that the company had to increase its share of the market towards 30 per cent from the current 25 per cent.
