Japanese car makers Daihatsu and Toyota are teaming up together to develop a small car for the emerging markets like India, China, Brazil and Russia. The new vehicle, which will be developed jointly with Toyota unit Daihatsu Motor Co., is expected to be manufactured at an Indonesian factory of Daihatsu Motor. Toyota will market the car under its own brand.
Toyota’s President Akio Toyoda has a vision of developing cars according to the regional requirements or demands from each niche market rather than selling conventional Toyota models across the globe. The development of a new car is in line with his vision to “localize” Toyota’s global product portfolio. This business alliance between the two companies will also mark the two firm's first joint development of a strategic vehicle for overseas markets.
Toyota, meanwhile, also has been developing on its own a compact entry-level family car powered by a roughly 1-liter engine. The company is expected to start making the car in India around 2011. The car will be placed under Rs. 5 lakh and will generate volume sales for the company.
