Team-BHP - Daihatsu could enter Indian market by 2019
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When I attended the Tokyo Motor Show last year, I was drooling at Daihatsu cars, they have some delicious cars that are good fit for Indian roads.

Low-cost and small cars continue to account for the lion's share of new car sales in the Indian car market. However, while manufacturers are either bringing in new small cars or designing low-cost models specifically for the Indian market, Toyota hasn't been able to find great success in entry-level segments. To target lower-rung segments better, it looks Toyota's subsidiary Daihatsu will enter the Indian automotive fray.

Daihatsu's plans for India may be finalized by the year end with launches expected around 2018-19. Toyota will be looking at Daihatsu to improve its foothold in the small car market. While models like the Fortuner and Innova are popular, entry-level cars like the Etios and Liva haven't been able to look eye to eye with the competition.

Toyota currently holds a majority stake (51.2%) in Daihatsu and is expected to make it a wholly-owned subsidiary by August, 2016. The purpose of the agreement is to develop a unified strategy for the small car segment, under which both companies will be free to focus on their core competencies. This same strategy is likely to see Daihatsu deal with competitive entry-level and low-cost segments, with Toyota targeting the premium space. Daihatsu cars could be made in Toyota's plant in Bidadi, Karnataka.

Source: ET Auto

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I believe daihatsu specializes in Kei cars, and should be hit in India where cities are becoming increasingly congested.

Well after launching the Etios Liva they had stated that they had given up on the segment in India.

Overpriced cars will not work in the small car (A and B) segment in India because people already have Maruti and Hyundai to an extent to provide quality at a low cost. I don't think Toyota can match that.

However, with the Etios Liva getting 4 stars in the Global NCAP crash test it may be interesting to see what direction Maruti and Hyundai prices go once the new basic safety requirements become mandatory in India. If the Baleno is anything to go by, Maruti has already prepared well.

I think Toyota Aygo will be a perfect car for India. It is very stylish and modern, both inside and outside. And comes with a 1.0L 3 cylinder VVTi motor producing about 51 KW of power. Recently I saw it directly compared to Grand i10 on motoring show called 'Drive It' on DW TV. Grand i10 in Germany is sold with with 1.0L kappa motor. However final verdict was Grand i10 slightly better the Toyota Aygo.

Below is the Production, Sales and Export Results for Nov-15 for Daihatsu.

Daihatsu could enter Indian market by 2019-daihatsu-stats.jpg

Their sales split looks 61% - Domestic & 39% - Overseas for 2015 (Jan to Nov 2015). Sales figures have declined over the last couple of months both within the country and overseas.

Source:
http://www.daihatsu.com/news/2015/1225-3/20151225-3.pdf


In the UAE, there are 3 models of Daihatsu available – 1. Sirion 2. Terios 3. Gran Max Van / Pick Up

Terios is a 1.5 L 4WD Sub Compact SUV available in 2 variants SVP and SX manufactured in Japan.
Daihatsu could enter Indian market by 2019-daihatsu-terios.jpg

Sirion is a mini hatchback with 1.5 L FWD engine mated to a 4A automatic gear box manufactured in Japan.
Daihatsu could enter Indian market by 2019-daihatsusirion.jpg

Gran Max Van has a 1.5 L FWD engine available with 5M / 4A gearbox built in Indonesia.
Daihatsu could enter Indian market by 2019-daihatsugranmax.jpg

Gran Max Pick up comes with a 1.5 L FWD engine available only with a 5M gearbox built in Indonesia.
Daihatsu could enter Indian market by 2019-daihatsugranmaxpickup.jpg

Daihatsu cars in India will sport Toyota badge. Launch in 2018/2019.

Acquisition expected by mid 2016 after which the product strategy for India to be outlined.


http://economictimes.indiatimes.com/...w/51524218.cms

Toyota is better off getting the Vios and Yaris in to boost volumes. They are competent products, and they'll do well competing with the City and i20 respectively.

I'm a little apprehensive about releasing Daihatsu cars anytime soon. Daihatsu, perceived as a low cost brand shouldn't turn into another Etios/Liva kind of experiment.

The Indian market, below the premium hatchback segment, is difficult to crack. So it's best the Toyota doesn't go to the lowest part of the volumes segment first.

I read somewhere that the original Innova was conceived and produced by Daihatsu and marketed by Toyota as its own car. The low cost attempt by Nissan/ Datsun didn't work out in India. Maybe it is different this time.

Quote:

Originally Posted by landcruiser123 (Post 3938217)
Toyota is better off getting the Vios and Yaris in to boost volumes. They are competent products, and they'll do well competing with the City and i20 respectively.

The Indian market, below the premium hatchback segment, is difficult to crack. So it's best the Toyota doesn't go to the lowest part of the volumes segment first.

I agree. I feel one of the best way forward for Toyota is to bring the Vios quickly, slot it above the Etios and compete with the City. Vios is a good product.

And be a part of the ever increasing Compact Sedan market by chopping the boot in the Etios, price it well with decent features and voila you have good products at different segments.

Toyota to bring Daihatsu cars to India by 2019 under the Toyota brand initially. Will develop separate Daihatsu brand later.

First cars might rival the Maruti-Suzuki WagonR, the Hyundai Grand i10, the Maruti-Suzuki Ertiga and the compact SUV segment!

Quote:

insiders say that the Daihatsu models we will get here will only be the latest and the best-equipped versions. In addition, Daihatsu is likely to tailor its cars to our market, much in the way Suzuki does. What’s more, localisation levels are expected to be extremely high as well; not too far off from the 98 percent attained by Renault with the Kwid.

Initially, models from Daihatsu will be launched under the Toyota brand. This is to help make full use of Toyota’s wide and much respected sales and service network. But gradually Toyota will launch the Daihatsu brand here as well, and will position it below Toyota as it has done in markets like Indonesia and Malaysia.

The lead time for the project is expected to be in the range of two or three years. This will mean that Daihatsu will get either face-lifted versions or all-new models to take on the competition when it comes here in 2018 or later. Daihatsu teams in fact have already made several visits to India, and have even spoken to Indian vendors about volumes and commitments to other car makers.

The first few cars are expected to include rivals to the Wagon R, the Hyundai Grand i10 and the Ertiga, the compact MPV likely to be the first car to be sold under both brands. There will be a compact SUV as well.
ACI

Toyota and Daihatsu to develop compact vehicles for emerging markets like India.

Toyota Motor Corp. and its Daihatsu minicar subsidiary are forming a new company to focus on compact vehicles for emerging markets, as Toyota prepares for new battlegrounds in regions expected to see rapidly growing demand.

Quote:

Toyota and Daihatsu, which was brought under full ownership by Toyota this year, aim to set up the new company in January. The new organization, to be established under the umbrella of Toyota, would develop small cars for sale under the Toyota brand.

The move comes as Toyota and other Japanese automakers shift more focus toward emerging markets. Economies in places such as Brazil and Russia have been mired in recent slowdowns. But with rapidly expanding populations and a growing middle class, emerging markets as a whole are largely seen as helping determine the auto industry's future winners
Excluding China, emerging market sales are expected to climb to 30 million vehicles in 2023, from an expected 19 million this year.

Link

Some more info regarding Toyota-Daihatsu's India-specific plans:

Quote:

India is an integral part of this move. The structure of this new internal company is likely to be formed by January, 2017. The groundwork has already been done through various studies commissioned over the years, said people in the know of the plans. The Toyota-Daihatsu combine will target the A and B segments, where vehicles are typically priced below Rs 10 lakh. A person in the know of the plans said the vehicles would come around 2020 and conform to the BS-VI emission guidelines that would come into effect that year.

Vikram Kirloskar, vice chairman of Toyota Kirloskar:

"We are happy to note that India is among the countries being considered as the responsibility of Daihatsu as the Indian market has strong need for compact vehicles in the B Segment and A Segment which is Daihatsu’s strong point. The priority would be to strengthen operations in each country by first enhancing the collective capabilities of the Toyota Group."

Daihatsu will be responsible for the development, procurement and production preparation for compact vehicles for emerging markets based on “DNGA”, a Daihatsu vehicle architecture now being defined, and Toyota will support these efforts by providing knowledge and resources. The business plans will be formulated jointly and, in India, the Toyota-Daihatsu combine is likely to use Toyota's existing facility on the outskirts of Bengaluru. It factory has an annual capacity to produce 3.1 lakh vehicles and is being underutilised.

According a person in the know of Toyota's plans, the sourcing executives of Daihatsu have already met vendors to discuss a few projects. Daihatsu will launch a new generation Agya or Ayla — a small car sold in Indonesia — by 2019 and it is the same car which is being explored for the Indian market, said yet another person. “The company has also studied the possibility of launching the B segment SUV for India."

ET

Toyota And Daihatsu To Form ‘Emerging-market Compact Car Company’

It will be officially formed on January 1, 2017.

Quote:

Japanese carmaker Toyota is one of the world’s largest automotive firms. It has its products on sale in most of the established and emerging automotive markets around the world. To cater to and compete in emerging markets, Toyota will form an internal company, called Emerging-market Compact Car Company (EmCCC) with it’s fully owned subsidiary, Daihatsu. As the name suggests, the company will place utmost priority on emerging automotive markets across the globe. The company will also work towards introducing competitive cars based on Daihatsu’s approach of manufacturing affordable and high-quality products.
Quote:

Once the company is formed, current Daihatsu president, Masanori Mitsui will be appointed chairman and, Toyota managing officer, Shinya Kotera, will be appointed president of the new internal company.
This formation can potentially lead to a dominant role of the Japanese car firm in emerging car markets like India

Link


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