Toy­ota plans new unit on com­pact cars for emerg­ing mar­kets

The Sun (Malaysia) - - SUNBIZ -

TOKYO: Toy­ota Motor Corp yes­ter­day said it will set up a joint in­ter­nal com­pany with sub­sidiary Dai­hatsu to de­velop and mar­ket com­pact ve­hi­cles in emerg­ing mar­kets, as Toy­ota aims to ex­pand mar­ket share in other Asian mar­kets.

The Ja­panese au­tomaker plans to es­tab­lish the new unit in Jan­uary, it said in a statement, adding that its op­er­a­tions would be led by com­pact car­maker Dai­hatsu, a Toy­ota group com­pany, which was ab­sorbed by the au­tomaker ear­lier this year.

Dai­hatsu will be re­spon­si­ble for de­vel­op­ment, pro­cure­ment and pro­duc­tion prepa­ra­tions for com­pact cars while the two com­pa­nies will use ex­ist­ing pro­duc­tion sites to man­u­fac­ture the com­pact ve­hi­cles.

Toy­ota said the com­pa­nies were con­sid­er­ing pos­si­ble mar­kets in­clud­ing Viet­nam, India and Pak­istan.

“With the es­tab­lish­ment of the in­ter­nal com­pany, Toy­ota in­tends to learn the very fun­da­men­tals of Dai­hatsu’s com­pet­i­tive­ness and change the way we work,” Toy­ota ex­ec­u­tive vice-pres­i­dent Shigeki Terashi said in a statement.

The com­pa­nies in­tend to de­velop Dai­hatsu into a global brand as they fo­cus on grow­ing mar­kets for en­try-level com­pact cars, which are be­com­ing smaller and en­ergy ef­fi­cient due to en­vi­ron­men­tal and traf­fic con­cerns.

Dai­hatsu holds around a 16% mar­ket share of the pas­sen­ger car mar­ket in In­done­sia, where it man­u­fac­tures the Ayla and other ve­hi­cles in a joint ven­ture with As­tra In­ter­na­tional. In Malaysia, it op­er­ates a joint ven­ture which has a mar­ket share of around 32.5%. – Reuters

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