Toyota defers its plan to launch Daihatsu in India

Toyota has decided to defer its plan to introduce Daihatsu in India. Toyota is instead looking to leverage their proposed partnership with Suzuki to foray into the small car segment.

Daihatsu will be focusing on the South-East Asian market for now. The Chairman of Toyota Kirloskar Motor, Hiroyuki Fukui said, "Daihatsu is very busy with future plans of Indonesia and Malaysia. As for India, it may be Suzuki, as you are aware, we are in talks. Nothing is finalized yet." Fukui - also the CEO of Asia, Middle East and North Africa region - said that the company will focus on markets where they have a significant market share.

Meanwhile, the company is in talks with Suzuki for the small car segment in India. Fukui also said, "Suzuki is the master of small cars and we are the students. There is so much we can learn from them. I'm not part of the discussion, but if the partnership fructifies, there is much to gain from Suzuki."

Maruti Suzuki is India's biggest car maker by volume. To a certain extent, the introduction of Daihatsu would have posed a threat to local brands including Maruti Suzuki. Toyota, which currently has a market share of 4-5% is looking to bring new cars to India in order to build volumes. 

Source: Economic Times