The Hindu Business Line : Daihatsu willing to partner with Toyota

Tokyo, Oct. 24 Small car major Daihatsu has said Suzuki Motor’s huge market share in India has kept it away from launching its own models in the country.

The company will, however, be willing to partner with Toyota Motor Corporation to launch a small car in India, the Daihatsu President, Mr Teruyuki Minoura, told reporters at the 40th edition of the Tokyo Motor Show.

“Even though India is a very big market, Suzuki is very strong there. It has captured nearly half of the market there. We don’t want to compete with them,” Mr Minoura said. He, however, said that it was willing to consider partnering with Toyota Motor Corporation for launching a car in the Indian market.

“It can be a possibility but Daihatsu will not come into India on its own,” he said.

Sourcing Components

He also said that there are also no plans to source components from Indian vendors. “We are quite happy with our current vendors. We have no plans to get vendors from India on board,” he said.

An auto analyst with the London-based Global Insight, Mr Ashvin Chotai, said that even if Daihatsu finds Suzuki’s huge presence in India intimidating, Toyota should not delay launching a small car in the Indian market. “Even though building a small car is a bit of challenge, India is a large market for such cars. Nearly 80 per cent of the car market is in the sub-Rs 5 lakh range. If you are not present in that price band, you cannot expect to make serious money in India,” Mr Chotai told Business Line.

While Daihatsu does not see any future for its cars in India, in a message on its Web site, the Daihatsu Chairman, Mr Kousake Shiramizu, last year indicated that global expansion was key to the company’s growth.

“In contrast to Japan, where the low birth rate precludes expectations of quantitative market growth, our overseas business holds major possibilities. The globalisation of our business is absolutely essential for our future growth,” Mr Shiramizu pointed out.

Earlier, Daihatsu, which is owned by Toyota Motor Corporation, unveiled a slew of concept cars including HSC — a 660 cc car with a fuel efficiency of 43 km per litre.

Built as a mini-sedan, it can seat four passengers but Daihatsu has no immediate plans to take it to the market yet. The small car maker also launched a mini vehicle called Tanto for the Japanese market. The car which is equipped with power sliding doors is designed for the family and is expected to be launched in December this year.

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