Rumour: Daihatsu approaches Datsun supplier for India plans

Toyota has been planning to introduce its budget-oriented sub-brand - Daihatsu, in the Indian market for a fairly long time. Previous reports have claimed that Daihatsu could make an official debut in the country in 2019. Though the company hasn’t officially revealed any timeline as of now, it is said to be working on its India plans in the background.

A recent media report suggests that Daihatsu has approached a Datsun parts vendor for sourcing components of its budget car that is expected to be unveiled at the 2020 Auto Expo. It is being reported that this car will be launched at a price of Rs. 3.5 - 4.5 lakh. Daihatsu has reportedly confirmed to the supplier that it will be developing products that will be placed under the Etios and Liva twins.

Since Datsun suppliers are already producing parts that are used in budget-oriented products, it appears to be an ideal strategy for Daihatsu to leverage Datsun's supplier network to source parts for its models. Daihatsu is likely to use a new production line at Toyota's manufacturing facility in Bidadi, Bangalore for its producing its range of cars in India. The brand is expected to target high localization levels in an attempt to keep prices competitive.

Source: Business World