Daihatsu introduces New Move that boasts fuel consumption of 27km/L

Purchasing Reform will reduce parts procurement costs by 30% by the end of 2011

2011/01/13

Summary

 Daihatsu intends to establish a business model in which it can turn a profit with mini cars under the current tougher market environment where it is competing with lower-priced hybrid vehicles and compact cars. It has been maintaining its target to sell 600,000 mini cars, currently developing fuel efficient, low-priced models that save energy in order to step up the presence of mini cars.

 In addition, amid global competition for lower prices, it is currently implementing "purchasing reform," in which it aims to cut 30% of the purchasing cost by the end of FY2011 by aggressively finding new suppliers and through cost reduction that it seeks jointly with suppliers.

 Concerning its overseas business, Daihatsu's main markets, Indonesia and Malaysia maintain their economic stability and are currently expanding their markets. Also in its consigned/OEM business, the company started to supply mini cars on an OEM basis to Fuji Heavy Industries in 2009. It will also supply mini cars to Toyota on an OEM basis starting in 2011.



New Move with idling stop system achieves fuel consumption of 27km/L

 In the trend toward lower-priced hybrid vehicles and an emphasis on higher fuel-efficiency, Daihatsu seeks a thorough improvement of its technology for gasoline engines and concentrates its resources on the development of fuel-efficient, low-priced, and energy-saving vehicles.

 In December 2010, Daihatsu launched a fully-remodeled mini passenger car, the Move, which is its core model. The model comes with an idling stop system that has reduced weight and cost, and the 2nd-generation KF engine; it is 35kg lighter and achieved fuel consumption of 27km/L in 10-15 mode, which is the best as a gasoline-powered vehicle (data from Daihatsu).

 In 2011 in Japan, Daihatsu plans to introduce a fuel-efficient mini car that is based on a concept car, the e:S, which it exhibited at the 2009 Tokyo Motor Show. The model is supposed to achieve fuel consumption of 30km/L in JC08 mode (The value in the JC08 mode is about 10% lower than that in 10-15 mode).

Daihatsu launches New Move in December 2010, which boasts of fuel consumption of 27km/L (the best among gasoline-powered vehicles)

Outline The company introduced the Move for the first time in 1995. The fully-remodeled Move is the 5th-generation model. It aims to be "the next-generation standard spacious mini passenger car." The model is based on Daihatsu's newly-developed platform which it plans to use for most of the new mini cars to be introduced in the future. The fuel consumption of the New Move is 27km/L in 10-15 mode, which is the best as a gasoline-powered car (data from Daihatsu). The price is 1.12-1.611 million JPY. The monthly sales target is 12,000.
Newly-developedidling-stop systemecoIDLE The ecoIDLE is equipped in mass-market grade models as standard equipment. The fuel consumption is improved by 2km/L in 10-15 mode. By minimizing the number of exclusive parts for the idling stop system, the weight and the cost are reduced by 60% and 70%, respectively, from the current model. Daihatsu intends to use the ecoIDLE in the entire range of mini passenger car models in the medium and long run.
In order to reduce weight and size, the ecoIDLE has abolished an electric oil pump for CVT through a newly-developed hydraulic control for CVT and early engine start-up control. In addition, the company has adopted a computer with a built-in auxiliary power circuit, which prevents a navigation system from being reset when the engine is restarted.
Newly-developed2nd-generationKF engine The model features the world's first (data by Daihatsu) i-EGR system that applies an ion current combustion control system, which detects the combustion state with the ion in the combustion chamber for the control of EGR (Exhaust Gas Recirculation). By sending a large amount of EGR gas, the pumping loss is significantly reduced.
By adopting a plastic electronic throttle body, the weight of the model is reduced; also by coordinated control with the engine and the CVT, the engine is controlled to the most efficient state depending on the driving condition.
Vehicle weightreduction of 35kg The instrumental panel and door trim are made thinner. The number of parts in the framework of the body is reduced by 15%. The model comes with a light-weight CVT exclusively for the engine of mini cars.
Cost reduction The company achieved 10% cost reduction for New Move - 5% through "purchasing reform," which it has been implementing since 2009, and another 5% through other means.
Source:  Daihatsu Press Release (December 13, 2010), Nikkan Kogyo Newspaper (December 14, 2010), Nikkan Jidosha Newspaper (December 14, 2010).

 

Daihatsu's introduction of new model in 2009 year-end and later (other than New Move)
Tanto Exe December2009 While the Tanto targets customers raising children, the Tanto Exe is a new model developed as "Tanto for grown-ups," targeting male and female customers that put value on grown-up communication and a sense of oneself. It features a sophisticated design and a high-quality interior. Through weight saving of about 60kg and improvement of the powertrain, the model has achieved the top-level fuel efficiency (21.5km/L in 10-15 mode) among the same class models.
New Boon February2010 New Boon is the first fully-remodeled model after its launch in 2004. Daihatsu continues joint development with Toyota. The entire model comes with CVT. Some of the 2WD models achieve a fuel consumption of 20.8km/L in JC08 mode (This is Daihatsu's first model that has achieved the 2015 fuel economy standards). Advanced safety features such as ESC, side airbag, and curtain shield airbag are available as optional equipment.
e:S(tentativename) 2011 The e:S is a mini car based on a concept car that was exhibited at the 2009 Tokyo Motor Show. It achieves fuel consumption of 30km/L in JC08 mode with its gasoline-powered engine. The price has yet to be decided, but Daihatsu aims at 1 million JPY.
Source:  Daihatsu Press Release (December 24, 2009 and February 5, 2010), Nikkan Kogyo Newspaper (June 30, 2010), Nikkan Jidosha Newspaper (June 30, 2010)
(Note)  According to a newspaper report, Daihatsu has been developing a 1000cc-class eco car as a strategic model for emerging countries based on the technology for engines and weight reduction, which it accumulated through the development of the e:S. Its joint venture in Indonesia, Astra Daihatsu Motor, will produce the product. Daihatsu is said to be planning to introduce the model in Southeast Asian countries, including Indonesia and Malaysia in 2013.

Japan's vehicle market: Change of the ratio of mini cars and registered vehicles

(units)
 2nd half of 20081st half of 20092nd half of 20091st half of 2010
VolumeY-on-yVolumeY-on-yVolumeY-on-yVolumeY-on-y
Mini car 934,132 93.7% 777,551 88.9% 920,640 98.6% 863,971 111.1%
Small/standard vehicle 1,348,811 73.4% 1,398,138 90.6% 1,783,935 132.3% 1,677,001 119.9%
Total 2,282,943 80.5% 2,175,689 90.0% 2,704,575 118.5% 2,540,972 116.8%
Composition ratioMini car 40.9% 33.5% 34.0% 34.0%
Small/standard vehicle 59.1% 66.5% 66.0% 66.0%
Total 100.0% 100.0% 100.0% 100.0%
Source: Japan Automobile Dealers Association and Japan Mini Vehicles Association
(Note) 1.  Mini cars account for 36.1% in FY2006, 35.6% in FY2007, and 38.5% in FY2008.
2.  In the top 10 ranking of sales of new models by name in November 2010, four models are mini cars (Daihatsu Tanto and Move, and Suzuki Wagon R and Alto). Toyota's hybrid vehicle, Prius, is ranked first and Honda Fit, which includes a hybrid version, is ranked second.
3.  In the FY2008 ranking, six models in the top 10 are mini cars; five models are mini cars in the FY2009 ranking.


Daihatsu held the largest share of the mini car market for four consecutive years with...

 In FY2009, Japan's new mini car sales were 1.698 million, down by 6.1% from FY2008. Daihatsu enjoyed strong sales of Mira Cocoa, which it introduced in August 2009, and Tanto Exe, which it launched in December; it sold 596,000 mini cars and took a 35.1% share of the market, which is a record high. It has taken the largest marketshare for four consecutive years.

 In the first half of FY2010, the mini car market grew by 11.1%; Daihatsu increased its sales by 9.5% and took a 35.0% marketshare. Daihatsu estimates that the mini car market will shrink by 2.8% to 1.65 million for the FY2010 full-year. It expects to sell 580,000, which is down by 2.7%.

Japan's mini car market: New car sales volume by manufacturer

(units)
 DaihatsuSuzukiHondaNissanMitsubishiFuji Heavy IndustriesOtherOverall market
FY2005 591.9 625.5 242.6 123.5 170.8 140.7 53.3 1,948.4
FY2006 616.2 605.5 283.3 143.8 170.5 157.6 53.7 2,030.6
FY2007 612.8 587.3 223.8 141.7 135.1 135.0 57.3 1,893.0
FY2008 619.4 579.4 189.1 140.8 113.9 111.8 54.5 1,808.9
FY2009 596.2 554.5 158.4 136.2 105.4 97.4 50.1 1,698.2
* FY2010 580.0             1,650.0
April-September 2009 275.7 252.3 73.1 58.6 48.6 46.3 23.1 777.6
April-September 2010 302.0 275.3 85.0 70.6 53.0 52.1 26.0 864.0
Source: Japan Mini Vehicles Association
(Note) 1.  Figures for FY2010 are the estimate announced by Daihatsu in October 2010.
2.  In 2011 fall or later, Toyota will enter into the mini car market as Daihatsu supplies the product on an OEM basis (announced in September 2010. Described later).
3.  In December 2010, Nissan and Mitsubishi announced that they would establish a joint venture for planning and developing mini cars.

Daihatsu's sales of new cars by model in Japan

(1,000 units)
 FY2005FY2006FY2007FY2008FY2009FY2010 estimate1st half of FY20091st half of FY2010
Mini carMira 103.8 90.1 107.8 95.8 109.4 104.0 42.9 57.7
ESSE 28.0 47.8 34.5 33.7 34.7 27.0 15.6 16.8
Move 189.2 197.5 199.9 193.4 162.4 159.0 84.5 64.5
Atrai Wagon 26.4 19.5 21.2 16.9 11.7 8.0 5.7 5.1
Terios Kid 12.0 10.5 7.6 5.7 3.2 2.0 1.7 1.3
Copen 6.6 6.0 6.0 5.3 2.9 2.0 1.6 1.2
Tanto 92.7 107.9 113.5 159.6 161.6 167.0 71.8 94.6
Hijet Truck 72.6 65.6 64.3 55.7 63.3 63.0 29.5 34.7
Hijet Cargo 57.4 52.4 51.7 49.5 46.6 48.0 22.1 26.2
Other 2.8 19.0 6.2 3.9 0.2 - 0.2 -
Mini car total 591.4 616.2 612.8 619.4 596.2 580.0 275.7 302.0
Compact carBoon 9.7 6.8 4.8 3.4 4.0 3.0 2.0 2.5
Others 4.0 13.1 5.4 3.8 3.1 2.0 1.7 0.9
Compact car total 13.7 19.9 10.1 7.2 7.1 5.0 3.8 3.4
Total sales in Japan 605.1 636.2 622.9 626.6 603.3 585.0 279.4 305.4

Source: Daihatsu Results Support Documentation. Figures for FY2010 estimate are announced by Daihatsu in April 2010.



Daihatsu estimates consolidated sales volume would increase by 3.4% to 1.317 million for the FY2010

 In FY2009, Daihatsu decreased consolidated sales volume by 6.7% year-on-year to 1.274 million due to the influence of global recession. It decreased sales by 3.3% in Japan and by 16.0% abroad, and sales from consigned production/OEM by 3.5%.

 In the first half of FY2010, Daihatsu boosted consolidated sales volume by 16.9% to 677,000. It increased sales in Japan by 9.9% due to the wider coverage of tax cuts/subsidies for eco-friendly cars and to Daihatsu's own sales promotion campaign. It augmented sales abroad by 37.9% since the markets in Indonesia and Malaysia expanded due to the economic stability. Its sales from consigned production/OEM also grew by 12.0%.

 The effect of the ending of the government's subsidy on the FY2010 full-year results in Japan is unclear, but Daihatsu says that it will rev up sales by a full-remodeling of its core models, estimating that sales in Japan will grow by 0.4%. It also expects overseas sales will increase by 19.4% through an expansion of the market, forecasting the overall sales to climb by 3.4% to 1.317 million.

Daihatsu's consolidated sales volume

(units)
 FY2005FY2006FY2007FY2008FY2009FY2010 estimate1st half of FY20091st half of FY2010
Domestic sales volume 563,777 586,240 570,653 587,052 567,840 570,000 263,000 289,000
(Mini car) 550,738 567,301 561,628 580,140 561,661 565,000 260,000 286,000
(Compact car) 13,039 18,939 9,025 6,912 6,179 5,000 3,000 3,000
Overseas sales volume 286,708 342,423 374,286 357,829 300,621 359,000 132,000 182,000
Daihatsu vehicle total 850,485 928,663 944,939 944,881 868,461 929,000 395,000 471,000
Consigned vehicle in Japan 187,372 262,512 245,368 223,111 220,078 195,000 111,000 111,000
OEM vehicle 9,184 27,801 36187 65,621 46,967      
Overseas consigned vehicle 95,452 97,090 109,549 131,816 138,684 193,000 73,000 96,000
Consigned/OEM (Note 2) 292,008 387,403 391,104 420,548 405,729 388,000 184,000 206,000
Vehicle total 1,142,493 1,316,066 1,336,043 1,365,429 1,274,190 1,317,000 579,000 677,000
Consigned engine 369,000 385,000 434,000 470,000 553,000 n.a. 224,000 269,000
Source:  Daihatsu Financial Highlight and Results Support Documentation
(Note) 1.  Figures for FY2010 estimate are announced by Daihatsu in October 2010.
2.  Consigned vehicles in Japan and overseas for the 1st half of 2009 and 2010, and FY2010 estimate include OEM vehicles.


Daihatsu revised upward its forecast for the FY2010 full-year results, expecting operating...

 In FY2009, Daihatsu posted consolidated revenue of 1 trillion 574.7 billion JPY, down 3.5% year-on-year. It recorded operating profit of 40.7 billion JPY, up 6.7%, and net profit of 21.1 billion JPY, down 4.1%.

 In the first half of FY2010, Daihatsu posted consolidated revenue of 813.1 billion JPY, which is up 13.1% year-on-year since it increased sales in Japan due to tax cuts/subsidy for eco-friendly cars and its overseas subsidiaries (especially in Indonesia) boosted sales volume. Daihatsu recorded operating profit of 52.7 billion JPY and net profit of 28.2 billion JPY, which are record highs for the first half of a fiscal year.

 In October 2010, Daihatsu revised its forecast for the FY2010 full-year consolidated results upward from the forecast it had announced in April of the same year due to steady increase in sales volume in Japan and abroad. It estimates revenue to be 1 trillion 550 billion JPY, which is slightly down from FY2009, but expects operating profit and net profit to double to surpass the record figures in FY2007.

Daihatsu's consolidated results

(1 million JPY)
 FY2005FY2006FY2007FY2008FY2009FY2010 estimate1st half of FY20091st half of FY2010
Sales of Daihatsu vehicle 988,547 1,132,973 1,196,125 1,132,703 1,085,234 1,110,000 497,928 576,964
(Domestic sales) 729,039 773,055 792,795 812,373 788,513 790,000 368,187 411,010
(Overseas sales) 259,508 359,918 403,330 320,330 296,720 320,000 129,741 165,954
Consigned/OEM 359,424 504,151 506,476 498,691 489,492 440,000 220,980 236,153
Sales total 1,347,972 1,637,124 1,702,602 1,631,395 1,574,727 1,550,000 718,909 813,117
Operating profit 48,638 54,373 65,201 38,191 40,747 82,000 11,122 52,746
Ordinary profit 50,360 60,207 66,563 39,455 43,842 88,000 12,925 55,127
Net profit 33,523 34,730 34,940 22,074 21,162 44,000 6,805 28,289
R&D cost 47,803 46,724 44,213 44,209 43,734 39,000 21,723 19,636
Capital expenditure 114,039 77,500 111,749 76,700 36,745 45,000 20,711 13,540
Depreciation 60,773 65,143 66,487 83,654 72,945 66,000 34,870 31,740
Source: Daihatsu Financial Highlight and Results Support Documentation
(Note)  FY2010 estimate is announced by Daihatsu in October 2010 and is revised upward from the forecast in April 2010. In April 2010, Daihatsu forecast consolidated revenue of 1 trillion 450 billion JPY, operating profit of 43 billion JPY, and net profit of 21 billion JPY.


Daihatsu to cut procurement cost by 30% by the end of FY2011 through "purchasing reform"

 In September 2009, Daihatsu announced a new purchasing policy (purchasing reform) against global competition for lower prices. It says that it aims to reduce purchasing cost by 30% by the end of FY2011 by aggressively finding new suppliers and seeking cost reductions jointly with suppliers.

 In 2010, it transfers some of the authority of parts procurement to its vehicle manufacturing subsidiary, Daihatsu Kyushu, in order to cut distribution and overall cost. In 2011, Daihatsu will establish a local affiliate for parts procurement in China.

Daihatsu's "purchasing reform"

Daihatsu starts "purchasing reform" in the fall of 2009, reducing purchasing cost by 30% by the end of FY2011
In September 2009, Daihatsu announced its policy for new purchasing activities in which it seeks open and fair purchasing free from existing contracts. It aims to cut parts procurement cost by 30% by the end of FY2011. By December 2010, Daihatsu started business with 16 new suppliers (13 in Japan and 3 abroad).

Source: Nikkan Jidosha Newspaper (October 6, 2010), etc.

Daihatsu transfers some of the authority for parts procurement to Daihatsu Kyushu, its vehicle manufacturing subsidiary
In June 2010, Daihatsu unveiled that it would transfer some of the authority for parts procurement to its vehicle manufacturing subsidiary, Daihatsu Kyushu. First, in 2010, Daihatsu Kyushu starts direct purchasing of about 50 selected parts including plastic parts. Then, it will shift to direct purchasing of engine parts. It will reduce distribution costs by increasing purchasing of local parts. If possible, Daihatsu Kyushu does business directly with tier 2 and 3 suppliers in Kyushu, with which it is currently doing business through tier1 suppliers that do business with Daihatsu headquarters.

Source: Nikkei Sangyo Newspaper (June 18, 2010)

Daihatsu establishes a local affiliate for parts procurement in Shanghai, China in April 2011
Daihatsu unveiled that it would establish a local affiliate for information gathering on suppliers in Shanghai, China in April 2011 (reported in December 2010). The new affiliate is said to find new suppliers in order to enhance cost reduction activities and to improve price competitiveness of mini cars. Daihatsu has already opened its Beijing office in China, but this is the first time it will open an office for purchasing operations.

Source: Nikkan Jidosha Newspaper (December 13, 2010)



Overseas operations: Daihatsu to boost its production capacity by 50% in Indonesia and to...

 In its overseas business in FY2009, Daihatsu increased export of parts for overseas production by 13.6% due to increased exports to Indonesia, but halved export of vehicles to 58,000 due to the global recession. For the full-year FY2010, it expects to increase exports of parts for overseas production slightly, but to decrease export of vehicles further to 55,000.

 In Indonesia, the market is currently continuing to expand. Daihatsu plans to boost its production capacity by 50% to 350,000 a year in 2011. In Malaysia, Daihatsu's subsidiary in Malaysia, Perodua, launched its first MPV, the Alza, in November 2009 to expand its lineup.

Daihatsu's non-consolidated production and export volume

(1,000 units/sets)
 FY2005FY2006FY2007FY2008FY2009FY2010 estimate1st half of FY20091st half of FY2010
Production volume in Japan 909 1,078 1,031 994 893 802 414 422
Parts for overseas production 296 293 380 396 450 480 n.a.
Export (finished vehicle + CKD) 107 148 157 107 58 55
(Note)  Figures for FY2010 estimate are announced by Daihatsu. The estimate for production in Japan is announced in October 2010. The estimates for parts for overseas production and export are announced in April 2010.

 

(Reference) Daihatsu's global production volume
(1,000 units)
 FY2006FY2007FY2008FY2009FY2010 estimate1st half of FY20091st half of FY2010
Domestic (Japan)Mini car 634.3 622.9 644.6 600.7 580.0 281.1 293.3
Compact car 156.8 144.3 92.7 52.7 37.0 25.6 22.5
Total 791.1 767.2 737.4 653.4 617.0 306.8 315.8
OverseasIndonesia 36.7 55.5 84.2 88.6 n.a. 37.2 62.2
* Malaysia 168.0 157.0 170.4 161.5 70.6 98.7
Venezuela - 3.6 6.6 1.7 1.7 0.7
* Total 204.6 219.7 266.0 252.9 348.0 110.6 161.6
* Daihatsu total 995.7 986.9 1,003.4 906.3 965.0 417.3 477.3
Consigned/OEMDomestic 287.4 263.5 256.5 239.6 185.0 107.5 106.6
* Overseas 100.0 128.8 157.0 160.5 181.0 74.1 88.6
* Consigned/OEM total 387.4 392.3 413.5 400.1 366.0 181.6 195.1
* Grand total 1,383.1 1,379.2 1,416.9 1,306.4 1,331.0 598.9 672.5
Source: Daihatsu Results Support Documentation
(Note) 1.  Figures for FY2010 estimate are announced by Daihatsu in October 2010.
2.  Daihatsu's domestic production in Japan includes export (finished vehicles + CKD).
3.  Daihatsu overseas total and Daihatsu total in FY2007-2009 include the actual results in China.
4.  Figures for Venezuela are included in domestic production in Japan since Daihatsu conducted CKD assembly until September 2007. In October 2007 and later, those figures are included in overseas (local) production.
5.  Figures with * include the actual result of Daihatsu's Malaysian consolidated subsidiary, Perodua, but since its fiscal term is from January to December, figures for FY2006 to 2009 are those for January to December and figures for the 1st half are those for January to June.
Indonesia: Sales of Daihatsu vehicles are estimated to grow by 51% to 126,000 in FY2010
In FY2009, the market in Indonesia shrank by 2.2% year-on-year to 560,000. Yet, sales of Daihatsu vehicles grew by 2.2% to 83,000 due to the successful low interest-rate campaign. Daihatsu took a 14.8% marketshare.
In the first half of FY2010 (April-September), the Indonesian market expanded by 59.3% to 375,000. Daihatsu enjoyed strong sales of 3-row, 7-seat Xenia and Gran Max commercial van, boosting its overall sales volume by 63.3% to 59,000 to take a 15.8% share of the market. The Indonesian market is expected to grow by 34.5% to 737,000 for the FY2010 full-year. Daihatsu estimates sales volume of its vehicles will increase by 51.0% to 126,000 to boost its marketshare to 17.1%.
Indonesia: Daihatsu to boost its production capacity by 50% to 350,000 a year
Daihatsu's production facility in Indonesia, Astra Daihatsu Motor (ADM) produced 238,000 (up 8.2% year-on-year) in FY2009, which includes 89,000 Daihatsu vehicles and 150,000 Toyota vehicles. In the first half of FY2010, it sold 147,000 (up 41.3% year-on-year), which includes 62,000 Daihatsu vehicles and 85,000 Toyota vehicles.
Daihatsu plans to invest slightly more than 2 billion JPY in ADM by 2011 to boost its production capacity by up to 350,000, or 50%, a year. This is because sales of models such as Daihatsu Xenia 7-seat MPV and Toyota Avanza are currently increasing in Indonesia.
Source:  Daihatsu Results Briefing Presentation Material (April 27 and October 29, 2010) and Nikkei Sangyo Newspaper (November 1, 2010).
Malaysia: Perodua has maintained the largest marketshare in 2009 for four consecutive years
In 2009, the market in Malaysia shrank by 2.0% year-on-year to 537,000. Yet, Daihatsu's subsidiary in Malaysia, Perodua, sold 167,000, which is about the same volume as the previous year, to take a 31.1% marketshare. It has maintained the largest share for four consecutive years.
In January-June 2010, the Malaysian market expanded by 19.8% to 301,000. Perodua continued to enjoy strong sales of the Viva (based on the Mira) and the Myvi (based on the Boon) to boost its overall sales by 23.2% year-on-year to 95,000, which accounts for 31.5% of the market. The Malaysian market is expected to grow by 10-12% to 590,000-600,000 for the 2010 full-year. Sales of Perodua vehicles are estimated to increase by 13.4% to 189,000.
Malaysia: Perodua launched Alza MPV in November 2009
In November 2009, Perodua launched the Alza compact passenger car as a new model. It is based on Daihatsu Boon Luminas and is developed mainly by Perodua. This is a model that targets MPVs and 3Box passenger car segment, which the Myvi and the Viva cannot cover. The monthly sales target is 3,500. The price is 56,000-64,000 Malaysian Ringgit (about 1.45-1.66 million JPY).

Source: Daihatsu Press Release (November 24, 2009) and Results Briefing Presentation Material (October 29, 2010).



Toyota group business: Daihatsu to start to supply mini cars to Toyota on an OEM basis in the...

 In Daihatsu's FY2009 consolidated revenue, consigned production/OEM business through collaboration within the Toyota group accounts for about 31%. In FY2009, Daihatsu enjoyed favorable business with models that are covered by tax cuts for eco-friendly cars such as Passo, which it manufactures through consigned production, but the overall production in the consigned production/OEM business declined.

 In September 2009, Daihatsu started supplying mini cars to Fuji Heavy Industries on an OEM basis, currently supplying three models - Mira, Tanto Exe, and Atrai Wagon. In addition, through an agreement with Toyota in September 2010, Daihatsu will start supplying mini cars to Toyota in the fall of 2011 or later.

Toyota and Daihatsu reached an agreement on OEM supply of mini cars

In September 2010, Toyota and Daihatsu agreed to supply Daihatsu mini cars to Toyota on an OEM basis in Japan. This is a move to respond swiftly to request for mini cars by Toyota customers; by utilizing the Toyota group resources, Daihatsu supplies mini cars on an OEM basis. By expanding its collaboration with Toyota, Daihatsu can have an opportunity to expand the mini car market and to increase production volume.
Specifically, in the fall of 2011 or later, Daihatsu plans to introduce three models (Move Conte, Hijet, and one other model). The annual sales volume will be 60,000 when the three models have been introduced. With this agreement on OEM supply, Daihatsu expects that Toyota's marketing of mini cars will attract attention and will have a positive impact on its sales of mini cars, saying that sales of Daihatsu mini cars will increase from the current 30,000 a year to 40,000 through sales cooperation with Toyota dealers and that, combined with OEM supplies, sales of mini cars related to Toyota will amount to 100,000.
Daihatsu and Toyota also reached an agreement on collaboration in Japan in the field of environmental technology that Toyota has for HVs, EVs etc. They will decide concrete products and technology by the end of 2011 (also eyeing OEM supply of registered hybrid vehicles and support for the development of EVs).

Source: Toyota and Daihatsu joint Press Release (September 28, 2010)

Consigned production/OEM supply within the Toyota group

Domestic production (in Japan)
Business formBrandModel
Consigned production Toyota Probox/Succeed, Porte
Joint development/ consigned production Toyota Passo, bB
OEM supply Toyota Rush (Daihatsu Bego), Passo Sette (Daihatsu Boon Luminas)
Subaru (Fuji Heavy Industries) Dex (Daihatsu's Coo), Dias Wagon (Daihatsu Atrai Wagon), Pleo (Daihatsu's Mira), Lucra (Daihatsu Tanto Exe), Justy (designed for Europe)(Daihatsu Boon)
(Note) 1.  It is expected that Fuji Heavy Industries' Stella will be shifted to OEM supply from Daihatsu in FY2011.
2.  It is expected that the OEM supply of the Justy (Daihatsu Boon) designed for Europe to Fuji Heavy Industries, which started in September 2007, will be discontinued in 2011. This is because Fuji Heavy Industries will shift its compact car for Europe to the Trezia (Toyota Ractis), which Toyota supplies on an OEM basis (Trezia is launched in Japan in November 2010. It is planned to be released in Europe in 2011).

 

Overseas production
Business formCountryBrandManufacturing companyModel
Joint development/ consigned production Indonesia Toyota Astra Daihatsu Motor Avanza
Malaysia Toyota Perodua Avanza
OEM supply Indonesia Toyota Astra Daihatsu Motor Town Ace/Lite Ace (designed for Japan)( Daihatsu Gran Max), Rush (Daihatsu Bego)

Source: Daihatsu Annual Report 2010

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