Toyota will bring Daihatsu cars to India within the next two to three years. Instead of establishing a new brand, it will sell the cars under its own brand name.

Daihatsu FX Concept Indonesia
Daihatsu has been known for developing small cars

The world’s largest automaker Toyota has had a decent run in the Indian market. Most of their cars have been received well by the market and the strategy of maximum profits has worked well. But, considering how big the Indian car market is and the growth potential it has, the Japanese carmaker wants a formidable presence in the small car segment too.

Having tried its hand at the segment with the Etios twins, Toyota hasn’t been able to do well in the segment. The cost cutting measures adopted didn’t go too well with the buyers who preferred buying more rounded products which competitors had on offer. Now, Toyota intends to use Daihatsu’s prowess in developing small cars to crack this segment.

By mid of this year, Toyota will complete the acquisition of Daihatsu which will give it the freedom of taking decisions in its own way. The company will bring small cars to India within the next two to three years but instead of having the Daihatsu badge on the cars, there will be a Toyota badge and they will be sold through the current sales network.

The decision to not get the new brand to India is a smart move. Establishing a new brand in a market like India isn’t easy and setting up a sales network takes a long time. Competitors like Nissan who tried getting the Datsun brand in India have also failed in generating enough sales. There is a lot riding on small cars for Toyota as it aims to compete with Hyundai and Maruti in the long run to become the market leader.

Toyota Daihatsu Small Cars

– Toyota to bring Daihatsu small cars to India in the next two to three years
– Cars will flaunt Toyota badge
– To benefit from current brand value and sales network
– Will help Toyota gain market share

2014 Toyota Etios Liva Facelift
Toyota hasn’t tasted much success in the small car space till now

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