Previously, the Japanese automaker Toyota had revealed that that the company has no plans to introduce new low cost small cars in India. However, the ever growing demand for small cars and the price sensitive nature of the Indian market, has resulted in Toyota planning to introduce the Daihatsu brand in India. Expected to be introduced sometime in 2018, Daihatsu will offer low cost small cars in the country which will compete directly against Maruti Suzuki and Hyundai.
Additionally, Daihatsu will also help Toyota to comply with new norms based on corporate average fuel efficiency (CAFE) system which are similar to European standards. By 2017, fuel efficiency of cars are expected to improve by 10 per cent, while in 2022 it will improve by 15 per cent as compared to 2009-10 as the base year. Toyota's full ownership over the Daihatsu brand will help the automaker to focus on introducing more small cars from the new brand.
For the initial period, Daihatsu will be focusing on introducing small cars in the country and gradually consider introducing bigger vehicles in the country depending on the demand. With standard safety norms being introduced for new cars soon, the upcoming models from Daihatsu will be offered with all modern safety equipment. Moreover, they will be developed to suit Indian conditions.
In India, Daihatsu cars will be sold via existing Toyota dealerships. With pricing being a vital reason for introducing the Daihatsu brand in India, the company will also be focusing on localisation benefits. Over time, depending on its growth in India, the company might also consider introducing a separate sales and service facility in India. More details about the likely models to be introduced by Daihatsu will be known at a later date.
