TOKYO (Nikkei)--Hitachi Ltd. has decided to enter the business of satellite broadcasting services for motorists, The Nihon Keizai Shimbun learned Wednesday.

Hitachi this fiscal year plans to set up a new company, and in 2003 aims to begin providing music, information on weather and road conditions, and other such services to motorists via receivers in their automobiles.

Total investment is expected to surpass 100 billion yen. Hitachi will ask other companies such as Toyota Motor Corp. and Matsushita Electric Industrial Co. to help fund the new company.

Hitachi's move may lead to competition with Toshiba Corp. , which is at the core of another group that also plans to enter the field. The market for satellite-based automobile broadcasting services is expected to grow to 1-2 trillion yen, analysts say.

Pending government approval, Hitachi plans to have the new company use three or four satellites in elliptical orbits to provide 60-80 channels of programming. The Toshiba group is eyeing the use of geostationary satellite signals.

The use of satellite broadcasts will allow motorists to enjoy clear audio and television programming, even while their vehicle is traveling at high speed.