Toyota to make Daihatsu a 100% subsidiary; entrusts A-segment development

Daihatsu technologies become core for strengthening emerging market operations

2016/03/28

Summary
Toyota to make Daihatsu a wholly-owned subsidiary; Daihatsu to lead Group A-segment car development
Cooperation between Toyota and Daihatsu until the present
Toyota's vehicle sales by region: declining sales in Asia and other emerging markets
Production Forecast by LMC Automotive: Toyota Group's production in 2019 to reach 10.5 million units

Summary

The Agya, a fuel-efficient car sold in Indonesia by Toyota, was planned, developed, and produced by
Daihatsu and supplied to Toyota under an OEM agreement (photo: courtesy of Toyota Astra Motor)

Toyota Motor Corporation and Daihatsu Motor Co., Ltd. announced in January 2016 that Toyota will turn Daihatsu into a wholly owned subsidiary, and that Daihatsu will take charge of developing A-segment cars for both brands based on the mini vehicle technology it has fostered until now. Daihatsu has been engaged in the consigned production of vehicles jointly developed with, and OEM supply of its vehicles to Toyota. Daihatsu will henceforth fully take charge of developing small cars for the Toyota Group and expand the regions in which these vehicles are sold.

Daihatsu developed an A-segment platform based on the Mira e:S. The company used this platform to develop the Toyota Agya and Daihatsu Ayla for the Indonesian market, and sales have been strong. Daihatsu also released models based on the platform in the Philippines (a Toyota brand vehicle) and Malaysia (a Daihatsu brand vehicle). These activities seem to indicate the direction of future cooperation between the two companies. A small car developed by Daihatsu is also scheduled for release in Thailand.

Toyota's vehicle sales have stalled over the past 2 to 3 years in emerging markets including Asia, but the Toyota Group intends to strengthen operations in those countries by taking advantage of Daihatsu's fuel manufacturing expertise for fuel efficient, low-cost vehicles.

Related Reports:
Indonesia: Economic stimulus measures may boost sales in H2 2016 (March 2016)

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