New budget brand from Toyota, Daihatsu

Toyota and Daihatsu have announced that the two companies will create a new budget brand on January 1, 2017 for emerging markets. The company, named ‘Emerging-market Compact Car Company’, will only be internal, meaning the two brands will not be spinning off a separate budget brand like Datsun is to Nissan, but will instead produce a range of small, cheaper cars under the Daihatsu brand.

No new badge would be created from the deal, but the two companies would pool knowledge on small cars. Daihatsu’s models would benefit from Toyota’s TNGA platform. The new cars will emerge within a
few years.

Daihatsu will have responsibility of product and quality planning, while the product and business planning division will be shared. While the brand is yet to name target markets, India is likely to be included in the list with Toyota reportedly interested in bringing in more small
cars developed jointly
with Daihatsu.