Toyota Motor company, one of the biggest manufacturers of passenger cars around the world announced that it would form a new internal company with its fully owned subsidiary, Daihatsu. The new internal company will be responsible for the vehicles in the emerging markets around the world, and it will include the Indian market. The new venture will be known as “Emerging-market Compact Car Company”.
The president of Daihatsu, Masonari Mitsui will be appointed the chairman of the new venture while Toyota Managing Officer Shinya Kotera will be appointed the president of the new internal company. The new internal company will target developing market and will not follow conventional practices to introduce highly competitive and better cars. The process will involve Daihatsu’s approach of manufacturing affordable and high-quality products with Toyota’s expertise.
The new company will get three divisions, the Emerging-market Compact Car Product & Business Planning Division, the Emerging-market Compact Car Product Product Division and the Emerging-market Compact Car Quality Planning Division. Also, the Toyota Motor Asia Pacific Engineering and Manufacturing will be renamed to Toyota Daihatsu Engineering and Manufacturing, and the new internal company will control it.
Interestingly, Daihatsu is exploring the Indian market to launch new budget products. The company is quite active in the other Asian countries like Indonesia but is yet to make an entrance to the Indian market. The new venture will be announced on 1st January 2017 and will be responsible for product planning and business operations for the Toyota-brand vehicles too. We may see a slew of budget cars coming out from the Daihatsu and Toyota brand in the future.
The new venture will bring in a lot of new products in India. Daihatsu is also planning to set-up a new base in India to manufacture their products. We will get a clearer picture when the brand becomes official in 2017.