Nokia is preparing to enter the European GPS navigation market with the release of its Nokia 330 Auto Navigation device.

The 330 features a 3.5in screen, 2GB of memory and maps and driving directions for the whole of Europe.

Along with navigation and 2D/3D maps, the 330 will have photo, video and music-playing capabilities. It is scheduled for release later this year.

The device will use map data from Navteq and driving navigation will from Dutch firm Route 66. The device will retail at around €360 before tax.

"Consumers are increasingly eager to use personal navigation devices while driving and we are delighted to introduce the Nokia 330 Auto Navigation to meet this demand," said Razvan Olosu, vice president of multimedia enhancements at Nokia.

Demand is high in Europe and still growing, according to Chris Jones, principal analyst at technology research and consulting firm Canalys. 

"Europe has been a booming market for this type of product over the past two years, and GPS systems have been selling well across European countries," Jones told vnunet.com. 

The challenge for Nokia will be in getting its products onto already crowded retail shelves where companies such as Garmin and TomTom are established leaders. 

"Nokia will bring another big brand to the market, but it does not have a relationship with the consumer electronics retailers," warned Jones.

The analyst suggested that Nokia's own retail and web-based outlets could provide the company with a means to reach consumers.