TOKYO Oct 4 Toyota Motor Corp on
Tuesday 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
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
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 percent 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 percent.
(Reporting by Naomi Tajitsu; Editing by Sam Holmes)