With the Daihatsu cars, Toyota eyes to grow big in small car segment
Toyota, the world’s largest car maker is a pretty popular brand in Indian market, and now they are planning to launch the Daihatsu small cars in the market within coming two to three years. The small car segment in the country is immensely popular due to the easy handling and cost effectiveness, therefore the Japanese automakers sees high growth potential in the segment with the Daihatsu cars. Interesting fact is, the Daihatsu cars won’t be sold in the Indian market with its own brand name, but the Toyota badge.
Although Toyota sells highly popular SUV like Toyota Fortuner or MPV like Innova in the Indian market with great success, but in the compact car segment Toyota is yet to make a strong foothold. Which is why, they have decided to drive in the small car segment with their subsidiary brand Daihatsu made cars. The small car segment in the country is ruled by automakers like Maruti-Suzuki, Hyundai. With the Daihatsu small cars Toyota is eyeing to take on these brands. According to Naomi Ishii, MD of Toyota Kirloskar Motors, Toyota wants to utilize Daihatsu’s expertise in making small cars to get a fair market share in the Indian market.
Why not sell the Daihatsu cars with their own brand name? Mr. Ishii believes that, establishing an all new brand in the congested Indian market will be very difficult, but if these cars sell under the already established and well known Toyota brand name, it will be easier for retailing, as the new cars will be sold through Toyota’s own outlets. It will also be a cost effective plan for Toyota.
Toyota presently sells the Etios Liva in the small car segment, but the car is not that popular as cars from Maruti-Suzuki, Hyundai are. The car lacks the upmarket feel as it comes with lesser features to keep the price under affordability. Meanwhile with Toyota’s decision of selling the Daihatsu small cars in India with “Toyota” badge, Maruti-Suzuki fears some serious threat for the business.