Toyota seeks Daihatsu's help for mass market cars

Previously we had reported, how Toyota India admitted defeat in the small car segment.

As successful as the Innova and the Fortuner are in India, Toyota is struggling to sell mass market cars like the Liva hatchback and Etios sedan at the lower end of the spectrum. Presently, the Etios and Liva sell at ~2,100 units each a month in India. Their cars have not been able to give Maruti and Hyundai a tough competition ever since their launch. The Liva and Etios are pricier cars when compared to its core rivals but still lack the premium-feel that one would come to expect from modern vehicles at that price.

Toyota had earlier announced that it is going to slow down on investment in India and concentrate on bigger cars and UVs. But having realized the market potential of the mass market segment, Toyota is now looking to Japanese car maker - Daihatsu to make a break-through in the mass market segment in India. Toyota and Daihatsu have been in a similar partnership (49:51) in Indonesia, where Daihatsu sells cars independently too. However, for India, Daihatsu might develop a no-frills car which will be sold under the Toyota brand, via Toyota's distribution and sales centres across the country.

No official confirmation or other details are revealed about the same at the moment.

Source: NDTV Profit