Toyota and Daihatsu reveal plans for new budget models

New internal company will focus on developing cars for emerging markets, but no new sub-brand will be created

Daihatsu logo

Toyota and Daihatsu have announced plans to create a fleet of new budget cars for emerging markets, with the inception of a new internal company that will be operational from the start of next year.

The new company will be known as the ‘Emerging-market Compact Car Company’ internally, but this doesn’t mean a new sub-brand similar to Renault and its Dacia budget vehicle arm will emerge. Instead, the new cars created by the collaborative effort will still be badged as Toyotas and Daihatsus. Both companies will prop each other’s efforts up, supporting the production of vehicles under both brands. 

In charge of the new company will be two executives – one from each respective brand. Daihatsu president Masanori Mitsui will be appointed chairman, while Toyota Managing Officer Shinya Kotera will be the internal company’s president. 

Daihatsu became a wholly-owned subsidiary of Toyota in August in a deal said to be worth around $3 billion (£2.1 billion) and at the time the two firms hinted at using both brands' expertise to produce new small cars around the world.

At the time Toyota said that the move would help it to improve its small cars by having a unified strategy in the sengment, though hinted the companies would keep their management structures and "engage in friendly competition".

Toyota Aygo front

Toyota Aygo review

Toyota President Akio Toyoda said the buyout is: "an opportunity for us both to stop feeling that we need to go it alone, and trust each other to take full advantage of our respective strengths. In other words, we can now focus on our core competencies. That, I believe, is the key to achieving and sustaining global competitiveness. Daihatsu stopped selling cars in the UK in 2011.

Have you ever owned a Daihatsu? Let us know about it below...

Recommended

Best new cars coming in 2024
Best new cars coming in 2024 - header image
Best cars & vans

Best new cars coming in 2024

There are some big new models from the likes of BMW, Citroen, Dacia, Ford, MINI, Skoda and more on the way in 2024
29 Jan 2024
Sharp looking Toyota Sport Crossover Concept to be with us in 2025
Toyota Sport Crossover Concept - front
News

Sharp looking Toyota Sport Crossover Concept to be with us in 2025

Toyota’s EV push gains further traction with new four-door fastback
4 Dec 2023
New Toyota Small Urban SUV Concept previews future Volvo EX30 rival
Toyota Small Urban SUV concept - front
News

New Toyota Small Urban SUV Concept previews future Volvo EX30 rival

Toyota’s new Small Urban SUV Concept is likely to morph into the bZ2X, with Lexus and Suzuki versions to follow
3 Dec 2023
New Toyota Proace Max arrives to complete an updated van lineup
Toyota Proace Max
News

New Toyota Proace Max arrives to complete an updated van lineup

Toyota has completed its van range with the launch of the Proace Max large panel van and it’s updated all the other LCV models so they don’t feel left…
15 Nov 2023

Most Popular

Government in major U-turn on pick-up truck tax changes
Ford Ranger - side
News

Government in major U-turn on pick-up truck tax changes

HMRC scraps its plan to axe the benefit-in-kind ‘loophole’ for pick-ups, a week after announcing it
19 Feb 2024
Car Deal of the Day: Land Rover Defender looks the business at £324 per month
Defender Hard Top - downhill off road
News

Car Deal of the Day: Land Rover Defender looks the business at £324 per month

The current Defender is a fantastic SUV van for businesses and is our Car Deal of the Day for 20 February
20 Feb 2024
“The £16k Dacia Spring is an electric car game-changer”
Opinion - Dacia Spring
Opinion

“The £16k Dacia Spring is an electric car game-changer”

With many people claiming electric cars are just too expensive, editor-in-chief Steve Fowler thinks the Dacia Spring’s arrival in the UK is exactly wh…
21 Feb 2024