The Netherlands-based navigation specialist said buyers of Peugeot and Citroen models will have the option to include a TomTom system in their cars from 2015.
The PSA agreement shows the market demand for a modular navigation product that can be updated to the latest standard anytime, TomTom said.
TomTom's pact with PSA covers navigation software, maps for more than 30 countries in Europe and Latin America, the company's HD Traffic information, and a broad local-search function.
Separately, TomTom said it will supply one of the navigation solutions on the new version of the Lexus CT 200h. The so-called MoveOn navigation system, which will be available in several European countries this month, can be seamlessly integrated in the dashboard of the Lexus CT 200h.
The agreement with the Lexus premium brand is important for TomTom, because it expands the company's reach beyond the volume carmakers, who have in recent years partnered with TomTom to offer lower-cost navigation alternatives in cars that generally don't have embedded navigation.
Said TomTom Automotive Managing Director Charles Cautley: "Providing navigation for a luxury brand marks a significant milestone for us."
Last month, TomTom signed an agreement with Apple to provide maps and related information to the computer maker.