Daihatsu to be launched in India by Toyota to enter small car segment

Toyota India is seriously considering launching the Daihatsu brand in India to enter the compact and sub-compact small car segment. Daihatsu, previously a subsidiary of Toyota is now completely owned by the Japanese giant and only makes small hatchbacks, SUVs and sportscars for the Japanese and South East Asian markets along with a few key European markets. Daihatsu might make it to India sometime next year depending on what they plan to bring to the market first.

As of today, Daihatsu has a wide range of cars on offer which includes hatchbacks like the Boon offering cheap motoring solutions for Japanese motorists along with offerings in some European markets too. The Daihatsu range also has the popular Terios SUV which is a compact SUV that could go up straight against the likes of the Ford Ecosport, the Maruti Suzuki Vitara Brezza and the Mahindra TUV. The most popular Daihatsu is the Copen, a small two seater sportscar with a 660cc engine to meet KEI-Car norms in Japan.

Daihatsu’s entry into India will be interesting but Toyota will have to learn from the lessons and the experiences that Datsun has learnt. Although the smaller cars that Daihatsu brings to India could be badged Toyota in order to give the brand an overall boost, the Daihatsu brand could effectively dilute the Toyota brand Image in India. In order for this not to happen, Toyota could go the Nexa way by selling their more premium offerings through a separate dealer chain of separate the Daihatsu brand altogether by having separate showrooms and separate service centres for these small cars.