Smartphone is extensively used in vehicle navigation because of its convenience and abundant built-in sensor configuration. However, in some Global Navigation Satellite System (GNSS) challenged surroundings like urban canyon, tunnel and underground parking garage, smartphone cannot constantly serve the navigation. Inertial navigation system (INS) can only hold on for a short time since the built-in gyroscope and accelerometer are consumer grade level. In this paper, Non-Holonomic Constraint (NHC) is used as the virtual measurement for the integration with INS. It refers to the fact that the velocity in the vertical plane perpendicular to the vehicle forward direction is zero in the case of no jumps off or slides happening to the vehicle. Several problems when smartphone being applied in vehicle navigation are studied, such as arbitrary installation and location deviation from NHC holds. Tests was conducted in both simulated and real tunnel. The result shows an accuracy of 95% mileage when the vehicle passes through a 3km or longer tunnel.