Dutch navigation firm TomTom has reportedly lost its contract with car manufacturer Volvo.

Originally awarded in 2016, the contract was for TomTom to provide location and navigation services to Volvo from 2019.

With Google entering the dashboard software market, TomTom’s competition has increased, Reuters reports.

In September, Google secured a deal with Renault, TomTom’s client.

TomTom chief executive Harold Goddijn stated that customers were switching due to user experience, rather than simply price.

He was quoted by Reuters as saying: “I think it’s on user experience, that’s the key driver for [customers] making the switch.”

Although Volvo has not confirmed the new contract with Google, the company’s May statement was repeated by a spokesperson, confirming that Google Maps would be included in its next-generation ‘infotainment’ systems.

Earlier this week, TomTom posted an increase in core earnings to €62.4m ($72.2m) from €35.5m in the previous year.

“TomTom’s vision is a safe, connected and autonomous world, free of congestion and emissions.”

Group sales marginally increased year-on-year to €220m.

Sales of its conventional satellite navigation devices dipped, but this was offset by growing sales to carmakers and map licensing to other customers such as Apple and Uber.

The firm increased its full-year revenue outlook to €850m from €825m.

Earlier this month, TomTom was selected by the BMW Group to provide drivers with Live TomTom Traffic information, Online Routing and Electric Vehicle (EV) Services for BMW, Mini and Rolls-Royce vehicles.

This contract was announced following an extensive testing programme that commenced in April 2018.

TomTom Traffic provides drivers with live updates on upcoming traffic and delays, which keep drivers informed and reduce their total travel time.

The company’s online routing technology makes use of Cloud-based processing power to send alternative routes to the navigation system embedded in the vehicle.

TomTom Automotive managing director Antoine Saucier said: “TomTom’s vision is a safe, connected and autonomous world, free of congestion and emissions. The introduction of TomTom Live Traffic, Online Routing and Electric Vehicle Services into BMW vehicles is a huge step forwards to achieve this goal.”