Toyota Japan is getting serious about competing in the car navigation system niche. On May 8th they will be launching eight new models of navigation systems that will be available as dealer installed options. There will be five HDD models and three which rely on DVDs for content. The hard drive models will feature 40GB of storage capacity along with DVD playback and 5.1 virtual surround sound.

A 7-inch display monitor is standard, but a 9-inch LCD for the rear seat is an option. You can also choose to add a digital terrestrial TV tuner, a receiver for MobaHO!, a satellite digital audio/video service in Japan, or iPod connection capabilities.

These will not be cheap options from Toyota. The HDD models will range in price from $1,900 to $2,800, and the DVD versions range from $1,375 to $1,700. Presumably Toyota will use Japan as a test market to see if it makes sense to expand to wider markets.