Toyota to Buy Out Low-Cost Carmaker Daihatsu
car&bike Team
1 min read
Jan 29, 2016, 08:12 PM
Toyota has confirmed that it will buy out the rest of mini-vehicle maker Daihatsu's shares to make it a wholly-owned subsidiary of the world's biggest automobile manufacturer. Toyota, which currently owns 51.2 per cent of Daihatsu, said that the buyout will help it better leverage the lower-cost brand.
Toyota will acquire the remaining Daihatsu shares by swapping 0.26 of its own shares for each Daihatsu share, the companies said. Daihatsu shares will be delisted after July 26, they added.
Toyota had flagged the move earlier this week.
Daihatsu had the weakest sales performance in the Toyota group last year, lagging behind the Toyota and Lexus brands and truck-maker Hino.
Daihatsu specialises in 660cc vehicles and produces models including the Mira and the Cast, while also supplying car bodies and engines to Toyota and Fuji Heavy Industries Ltd.
It competes fiercely with Suzuki in Japan, where both automakers each hold about 30 percent of the mini-vehicle market. But as mini-vehicle sales slump in Japan due to a rapidly ageing society and a lack of interest in car ownership among young people, the automakers have been looking to expand further into overseas markets.
Daihatsu has a 15 per cent 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 20 per cent.
It also exports to Europe and North America, where some of its models have been sold under Toyota's Scion brand which is targeted at the youth market.
It remains to be seen whether Toyota will bring the Daihatsu brand into India to compete with the likes of Nissan's Datsun.
Global sales for Daihatsu slid 13.3 per cent in 2015. That pushed total Toyota group sales 0.8 per cent lower to 10.15 million, although the group retained the title of the world's biggest carmaker, beating Volkswagen's sales of 9.93 million.
The announcement by Toyota and Daihatsu comes days after the world's largest automaker denied a media report that it is discussing possible tie-ups with Suzuki from a variety of angles, including cross-share holdings.
Toyota will acquire the remaining Daihatsu shares by swapping 0.26 of its own shares for each Daihatsu share, the companies said. Daihatsu shares will be delisted after July 26, they added.
Toyota had flagged the move earlier this week.
Daihatsu had the weakest sales performance in the Toyota group last year, lagging behind the Toyota and Lexus brands and truck-maker Hino.
Daihatsu specialises in 660cc vehicles and produces models including the Mira and the Cast, while also supplying car bodies and engines to Toyota and Fuji Heavy Industries Ltd.
It competes fiercely with Suzuki in Japan, where both automakers each hold about 30 percent of the mini-vehicle market. But as mini-vehicle sales slump in Japan due to a rapidly ageing society and a lack of interest in car ownership among young people, the automakers have been looking to expand further into overseas markets.
Daihatsu has a 15 per cent 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 20 per cent.
It also exports to Europe and North America, where some of its models have been sold under Toyota's Scion brand which is targeted at the youth market.
It remains to be seen whether Toyota will bring the Daihatsu brand into India to compete with the likes of Nissan's Datsun.
Global sales for Daihatsu slid 13.3 per cent in 2015. That pushed total Toyota group sales 0.8 per cent lower to 10.15 million, although the group retained the title of the world's biggest carmaker, beating Volkswagen's sales of 9.93 million.
The announcement by Toyota and Daihatsu comes days after the world's largest automaker denied a media report that it is discussing possible tie-ups with Suzuki from a variety of angles, including cross-share holdings.
Related News
Popular Toyota Models
Latest Cars
Upcoming Cars
Latest News
car&bike Team | Jun 30, 2026Delhi EV Policy 2.0: New Petrol Two-Wheeler Registration Banned in Delhi from April 2028With Delhi's new EV policy approved, new financial incentives for buyers will be introduced while setting a clear roadmap towards an all-electric future for new vehicle registrations.1 min read
car&bike Team | Jun 30, 2026Tata Sierra EV: Variants, Features, Prices ExplainedThe Sierra EV is offered in six variants and two battery pack options.1 min read
Hansaj Kukreti | Jun 30, 20262026 Tata Sierra EV: In PicturesThe much-awaited Tata Sierra has finally been launched in its all-electric avatar. Let's take a closer look at it.3 mins read
Amaan Ahmed | Jun 30, 2026Tata Sierra EV Sandwiched Between Two Trucks In Novel Crash Test: Watch VideoNobody saw Tata's latest crash test coming -- not even the Sierra EV it was conducted on2 mins read
Jaiveer Mehra | Jun 30, 2026Tata Sierra EV Launched In India At Rs 18.79 Lakh: 5 Variants, 63 & 75 kWh Battery Options, 500+ km RangeElectric derivative of the Sierra is based on the Acti.ev+ platform and is offers over 500 km of range in real-world use.4 mins read
Amaan Ahmed | Jun 30, 2026Tata Sierra EV Real-World (C75) Range Figures RevealedUnlike what you may have seen on social media in recent days, the Sierra EV will not cover 700 kilometres, not even on the forgiving Indian Driving Cycle test2 mins read
Seshan Vijayraghvan | Jun 29, 2026Renault Kiger vs Toyota Urban Cruiser Taisor: Which Underdog Deserves Your Money?Both the Kiger and the Taisor promise strong performance, solid features, comfortable cabins and everyday usability, all without breaking the bank. But which of these underrated subcompact SUVs deserves your money? Let's find out.1 min read
Seshan Vijayraghvan | Jun 29, 2026Skoda Kodiaq RS Review: The Best Kodiaq Yet?The Skoda Kodiaq RS is finally here, and it's every bit as exciting as I expected. But was it worth the wait?7 mins read
Bilal Firfiray | Jun 28, 2026BMW X6 M60i Review: It’s Back And HOW!The BMW X6 M60i blends a 530bhp twin-turbo V8, with its unmistakable coupe-SUV styling. There’s plenty of character, but is it worth your money?6 mins read
Janak Sorap | Jun 25, 2026350cc Bajaj Dominar 400 Review: Same Character, Lower PriceA slightly lower displacement engine, a significantly lower price tag and nearly the same performance — the Bajaj Dominar 400 aims to be smarter rather than faster.6 mins read
Preetam Bora | Jun 25, 20262026 Bajaj Pulsar NS400Z First Ride Review: Smaller Engine, But Should You Buy It?The Bajaj Pulsar NS400Z won our Two-Wheeler Upgrade of the Year. Then new tax slabs happened. Smaller engine, same badge – but does it still deliver?6 mins read