Toyota calls for help from Daihatsu minicar unit to aid in Indian market

Friday 07 November 2014, 17:18 PM by

Japanese carmaker Toyota Motor Corp has been quite for sometime in Indian market. But this time around the brand has been reportedly struggling to crack the affordable end of India's car market and has approached the Daihatsu Minicar unit for help in this regard. In the Indonesian market, Daihatsu Motor Co. and Toyota Motor Corp has partnered to gain a successful presence in the country. In the Indonesian market, Daihatsu Motor Co. reportedly holds about 51% stakes.

Toyota calls for help from Daihatsu minicar unit to aid in Indian market | CarTrade.com
Toyota calls for help from Daihatsu minicar unit to aid in Indian market

For the Indian market, Toyota Motor Corp has reportedly asked the Daihatsu management for assistance in designing a affordable car for the domestic market. With this Daihatsu Motor Co. which has no brand presence in India may take a front position in developing an affordable car under Toyota badge for the Indian market. Speaking more on this, a senior Daihatsu executive said to sources, “Toyota is struggling big time in India, largely because it uses relatively high-quality, high-spec components for its cars there and failed to make use of cheaper parts available from indigenous local suppliers.” Speaking more on it, another senior executive commented, “We're currently looking extensively into why a strategic no-frills car like (Toyota's) Etios doesn't sell well in India ... as part of an effort to ready ourselves in case we're asked (to develop low-cost cars) formally by Toyota.”

With this move Toyota aims to gain a good footing in the domestic market and expects its sales to increase by a good volume. Commenting on the occasion, Kazuki Inoue, Daihatsu spokesman said “We have been discussing ways to quickly realize an expansion of our business cooperation with Toyota beyond Indonesia and Malaysia for some time, but nothing specific has been decided at this point.”

Source: Reuters

Follow Nikhil Puthran on
Ad
Popular Toyota Cars
    No New Cars
Popular Cars
Upcoming Cars
Ad