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The oldest Japanese car maker, Daihatsu has finally turned its head for the rest of the Asian market in order to expand the portfolio. The company was acquired by the Toyota Kirloskar Motor earlier this year for about $3 billion (approx INR 1.99 Lakh Crore). On Tuesday, Daihatsu announced its plan to launch the compact vehicles in the emerging markets like India.
Daihatsu renowned for manufacturing compact cars which are inexpensive for the market, plus profitable to the company as well. The Indian market is always a challenging target for the automobile manufacturers across the globe to launch the vehicles at an economical price while gaining the good profit. One of the fastest growing auto-markets where the company like Maruti Suzuki has already set its foot, now it would be quite tough to compete with such company.
Moving into the depth of the plan, Toyota said that this new operation will be flagged off in January by a new unit while the facility will be handled by the Daihatsu itself.
Making a statement over the new plan, Toyota executive vice president Shigeki Terashi said, “With the establishment of the internal company, Toyota intends to learn the very fundamentals of Daihatsu's competitiveness and change the way we work”.
Toyota will not be the first to launch another Japanese brand in India, before it, Nissan has also introduced its affordable arm, Datsun in the country to hit the segment hard without mitigating its brand equity.
While the other carmakers like Honda and Hyundai also try their hand on the small car segment, Toyota has never shown its interest in the segment. However, the company had recently launched facelift versions of its smallest offerings in the country, Toyota Etios Sedan and Liva hatchback, but the carmaker is still far from introducing the vehicles as such economical price.
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