Updated April 24th, 2024 at 12:24 IST

Toyota's scandal-hit Daihatsu aims to resume vehicle development this year

Daihatsu admitted rigging safety tests for 88,000 cars, mostly Toyota-branded, posing reputation risk for Japan's top automaker.

Reported by: Business Desk
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Daihatsu resumes development: Toyota's scandal-plagued subsidiary Daihatsu is gearing up to reinvigorate its vehicle development efforts by the end of this year, according to the company's president. The compact carmaker, tarnished by last year's revelation of safety test manipulations affecting around 88,000 vehicles, primarily under the Toyota brand, is now under the stewardship of Masahiro Inoue, who was appointed by Toyota to steer Daihatsu towards recovery and growth.

Inoue expressed his determination to resume full-fledged vehicle development once measures are firmly in place to prevent any recurrence of certification issues, with the possibility of minor model adjustments even sooner. "Once we have bedded down measures to prevent a recurrence (of the certification issue), we would like to move forward as early as the end of the year," said Inoue, highlighting the company's focus on overcoming past challenges.

Emerging market focus

Highlighting the potential in emerging markets, particularly in South America and Africa, Inoue stressed the importance of these regions for Daihatsu's future growth trajectory. "Emerging markets are a perfect fit for us, like throwing a fast ball straight down the middle of the strike zone," he remarked, highlighting the company's focus on seizing opportunities in these regions.

The company has made strides in rectifying its compliance status, with all but one of its models now confirmed to meet domestic standards, leading to the resumption of shipments. Inoue, drawing on his prior experience as Toyota's head in Latin America, highlights the importance of these regions in Daihatsu's upcoming development plans. "South America and Africa" are the markets that should be a focus for development over the next ten years," he added, highlighting the company's vision for future expansion.

(With Reuters Inputs)


Published April 24th, 2024 at 12:24 IST