Toyota could help Daihatsu launch cars in India in 2020

As the Indian economy gains momentum, more and more carmakers are looking at this green pasture. Besides Kia Motors of South Korea, Toyota-owned compact car specialist Daihatsu is also believed to be looking at India for business as growth opportunities in the compact segment is growing at a fast pace in this country.

Daihatsu sells the Ayla small hatchback car in countries like Indonesia and that is the model which looks promising for the brand’s entry in this country. Daihatsu has approached a parts vendor that supplies parts to Datsun in India with the view to collaborate for product lines in this market. Daihatsu has plans to develop a small car that will be positioned below the Toyota Etios hatchback.

Toyota wants Daihatsu to bring in a small car for emerging markets including India, considering the fact that the Japanese automaker too does not have a small car in its portfolio that could rival the popular duo of hatchbacks — Renault Kwid and Maruti Alto.

Toyota produces the Toyota Etios at the Bidadi facility in Bangalore and it could use the spare capacity to produce cars for Daihatsu. Daihatsu’s new small car is expected to make its debut at the 2020 Auto Expo.

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