Daihatsu shortens product development cycle to react to market demand

Applies mini vehicle technologies to compact cars

2013/08/20

Summary

Daihatsu Move
Daihatsu Move launched in December 2012
(achieving the best fuel economy
among height wagons at 29.0 km/L at the time)

 Daihatsu posted record sales of 653,000 mini vehicles in FY2012, registering new record highs in revenues (JPY 1,076.49 billion) for two consecutive years, in operating income (JPY 13.3 billion) for four consecutive years, and in net income for three consecutive years. Daihatsu estimates posting new records in revenues and profit in FY 2013 as well. However, because of intensified competitions in the mini vehicle market it expects only a slight increase of revenues (JPY 1,080 billion) and operating income (JPY 135 billion).

 Daihatsu has held the top share of the mini vehicle market since FY2006. Yet, due to the launch of the Honda N BOX and of a model that Nissan and Mitsubishi jointly developed, competition for higher fuel efficiency is particularly intensifying. Daihatsu will build an integrated engine development facility in Fukuoka, Japan, with plans to shorten the development lead time.

 Additionally, Daihatsu will apply technologies for low fuel consumption and low-cost production that it has accumulated in its mini vehicles in Japan to the development and production of multiple types of vehicles in Japan and compact cars in Indonesia and Malaysia.

 In Indonesia, administrative procedures for a Presidential Executive Order are under way for a Low cost green car (LCGC) by the Indonesian government. Daihatsu is scheduled to launch Daihatsu AYLA between the end of August and the beginning of September (Daihatsu will also produce its sister model Toyota AGYA).

 In Malaysia, anticipating the country's entry into the TPP, Daihatsu will build a new vehicle plant and an AT plant, enhancing the competitiveness of its local subsidiary Perodua.

Daihatsu management strategy: Advancement/evolution of the reform policy

Technological development To apply technologies that it has accumulated for Mira e:s/Move to the AYLA produced in Indonesia and multiple models in Japan.
* To develop more fuel-efficient and affordable models
* To create new attractive models ⇒ To create  new demand (To launch models with diversified features including "fuel efficiency," "convenience," and "fun for driving." )
Speed up
these items
Production  To Apply low-cost production method at Daihatsu Kyushu to Astra Daihatsu Motor in Indonesia and Perodua in Malaysia.
*To achieve low cost, high efficiency, and high quality, and to launch a most localized plant.

Source: Daihatsu's presentation on FY2012 Financial Results



Related reports: Two million mini vehicle sales expected in Japan in 2012 (posted in November 2012)