Daihatsu’s India launch has been impacted due to Toyota-Suzuki global alliance; Maruti Suzuki to help Toyota with small cars in domestic market
Toyota owned small car brand Daihatsu is not entering Indian market in near future. The move comes as an effect of Toyota and Suzuki’s alliance in global market. Under this partnership, India’s biggest carmaker and small car specialist Maruti Suzuki will help the Japanese car brand with small cars in domestic market.
As we reported earlier, Toyota has been eyeing the small car segment in Indian auto market for quite long time. But, instead of launching small cars with its own badge, the brand decided to roll out mass market products under the Daihatsu badge. However, with its alliance with Suzuki, the plan is scrapped for now. In that case, Daihatsu will focus on strengthening its Indonesian and Malaysian markets.
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Also, this means Daihatsu would continue with its current product quality, considering the fact that Indian market demands more qualitative cars compared to several other South-East Asian markets. Speaking about Toyota’s small car strategy for domestic market, the brand says it has a lot to learn from Maruti Suzuki in the mass market product category in Indian market.
It is not sure, how the two companies will move ahead in the small car segment of domestic market. We can assume that Toyota will share platforms, engines and suppliers with Maruti Suzuki for its ambitious small car project. But, this partnership won’t be like the Renault-Nissan one.
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Toyota is so enthusiastic about the small car project that it aims to set up a dedicated R&D centre in the country. The auto manufacturer’s design studio will be upgraded to be capable of handling larger projects. It doesn’t want to compromise on design or quality, while making India-spec small cars. Not only that, the Japanese auto giant will also focus on expanding its dealership network across the country that will help it to reach more customers, resulting in increased sales and bigger market share as well.