Daihatsu is one of the oldest automotive manufacturers in Japan, officially named Daihatsu Motor Co., Ltd., and headquartered in Ikeda City, Osaka Prefecture, Japan. The brand's predecessor, "Osaka Motor Manufacturing Co., Ltd.," was established in March 1907. Initially focused on the production and sales of internal combustion engines, it has now spanned three centuries and accumulated over a century of manufacturing history. In 1951, the company was officially renamed "Daihatsu Motor Co., Ltd.," with the name "Daihatsu" simultaneously implying a geographic and industry identifier meaning "Osaka Motor." In 1998, Toyota Motor Corporation acquired a controlling interest in the company, purchasing 51.2% of its equity. Thereafter, Daihatsu operated as an important subsidiary of the Toyota Motor Group, and from 2006 to the present, Toyota has effectively achieved full control. The brand symbol uses the uppercase "D" from the English "DAIHATSU" as its design prototype, symbolizing eternal youth and great fortune.
As a genuine "light vehicle expert," Daihatsu has long focused on the design and manufacturing of small-displacement cars and micro commercial vehicles. It is one of the leading light vehicle manufacturers with the highest market share in Japan and Southeast Asia, and has long held the leadership position in the Japanese domestic light vehicle market year after year.
Early Stage and Cooperation with Toyota
After its founding in 1907, the company was renamed "Daihatsu Kogyo Co., Ltd." in the 1950s, and subsequently signed a formal business cooperation agreement with Toyota Motor Co., Ltd. and Toyota Jidousha Bank Co., Ltd. in November 1967. In the 1980s, Daihatsu's overseas expansion reached an important node in the Chinese region: in 1984, it cooperated with Tianjin Motor and introduced the "Hi-Jet" micro commercial van through technology licensing and production cooperation (KD production). Two years later, in 1986, it also introduced the "Xiali" prototype car, the Charade. This technology-licensed model helped Tianjin Motor Group fill the gap in economical sedans in China's economy at that time. Since production began, cumulative output reached 1.54 million vehicles, with market holdings exceeding 1 million vehicles. The Xiali became the most dominant model in the national market at low prices, and the "Yellow Daihatsu" vans were also extremely popular in the taxi industry in the 1980s and 1990s.
Formally Joining Toyota in 1998
In 1998, Daihatsu announced its joining of the Toyota Motor Group. Around 2000, it also experienced a series of actions to "return to China"—respectively signing technology licensing contracts with FAW Jilin Automobile Co., Ltd. in 2005 and 2007 and jointly launching the "Senya (Xenia)" compact multi-purpose vehicle, with sales relying on the FAW commercial vehicle network in 2009. However, due to insufficient joint venture strength and product positioning that was detached from China's rapidly changing auto market requirements, Daihatsu withdrew from the joint venture business system established with FAW Jilin in early 2010.
Global Development and Accelerated Growth Since the 21st Century
Between 2012 and 2019, Daihatsu deepened its expansion in Southeast Asian countries such as Indonesia and Malaysia, promoting compact car platforms and developing for emerging markets. In 2020, the brand ranked 38th in the world's top 100 most valuable car brands.
2023 "Safety Testing Fraud Event" and Comprehensive Rectification
In December 2023, a third-party investigation report showed that Daihatsu had engaged in data forgery and non-compliant operations in up to 174 safety and collision certification test links, covering 64 models developed and sold in the past 30 years. Toyota Motor Corporation immediately announced the suspension of Daihatsu shipments to multiple overseas emerging markets. Thereafter, in January and July 2024, over 340,000 vehicles were recalled again, involving side airbag safety hazards and engine quality issues. In April of the same year, Daihatsu announced a complete adjustment of its group positioning—"New Mobility Company Centered on Micro Cars"—and handed over product development, inspection, and compliance approval processes completely to Toyota for leadership and control.
Recent Recovery and Strong Rebound in 2025
After nearly two years of comprehensive rectification and compliance reconstruction, Daihatsu's domestic sales in Japan saw a significant rise in 2025: Japanese 2025 fiscal year new car sales data showed that Daihatsu's micro car sales growth rate reached as high as 23.5%, amounting to 534,969 units, approaching Suzuki (the top) again among all groups. Daihatsu's global sales for the whole year of 2025 totaled 675,000 vehicles (including internal supply to Toyota), surging 25.8% year-on-year. In the same period, overseas exports of complete vehicles (CBU) exceeded 124,000 units, with a year-on-year growth rate of 13%. In March 2026, Daihatsu's 6th Factory in Karawang, Indonesia officially went into operation, with an expected annual production capacity of 140,000 vehicles, further strengthening its core manufacturing status in Southeast Asia.
Daihatsu's product line is developed strictly around Japanese Kei-car (K-car) standards, while also catering to emerging market demands centered on low-cost small cars. Products can be classified into the following four categories based on vehicle use and brand differentiation:
K-car Micro Sedans and Multi-Purpose Vehicles:
Mira Series: The 1980 launch light car pioneer, cumulative sales of 3.7 million units, is the left arm and right hand of Daihatsu's domestic sales base;
Move Series: High-roof light travel car launched in 1995, maximized through vertical space utilization, cumulative sales reached 2.067 million units, another benchmark work influencing Japanese light car development;
Taft: Light crossover SUV, maintaining flexible and efficient K-car specifications under a retro boxy exterior, with strong demand in overseas markets in 2026.
Light Sports Cars and Convertible Products:
Copen: Two-seater hardtop convertible lightweight sports car, hailed as "the ultimate toy for Japanese K-car enthusiasts". The body originally set to be equipped with a 660cc turbocharged three-cylinder engine, maximum power only 63 horsepower, while curb weight is only about 850kg, with light handling and unique driving pleasure. In 2025, the brand decided to officially discontinue the current model in August 2026.
Small Passenger Cars (Facing ASEAN and Other Export Markets):
Rocky Series: Extended-range electric model Rocky e-Smart Hybrid premiered in Indonesia, adopting a logic similar to series hybrid, drive wheels are fully driven by motor, greatly improving energy efficiency in emerging markets;
Be-go: Small SUVs imported sequentially into markets such as Malaysia and Indonesia, known for rounded design and fine interior.
Light Commercial Vehicles:
Hijet Micro Trucks / Vans: A cornerstone in Daihatsu's commercial vehicle field. Regarding electric versions, equipped with the e-Smart Electric pure electric system jointly developed by Toyota and Suzuki. Electric light vehicles have been launched on a large scale in ASEAN in early 2026, with a battery capacity of 36.6 kWh and a load capacity of up to 350 kg.
In terms of typical classic emotional models, at the 2025 Tokyo Mobility Show, Daihatsu developed a pure electric concept micro truck, the Midget X. The Midget X not only retained the mini retro styling of the 1960s but also fully utilized modern structural layout and electric systems to explore the future possibilities of net zero emissions for urban small and medium capacity vehicles.
2025 was a year of rebounding market performance for Daihatsu, following its full recovery from the 2023 "Safety Testing Fraud Scandal." In terms of global sales, Daihatsu sold a total of 675,000 vehicles (including OEM and exports) for the full year of 2025, surging 25.8% year-on-year—the fastest growth rate among all brands under the Toyota Motor Group. Daihatsu's strong performance served as one of the key growth engines helping Toyota Group retain the global champion title, with total sales reaching 11.323 million vehicles. The recovery in domestic sales within Japan was particularly impressive. According to Japan's 2025 fiscal year new car sales statistics, Daihatsu's micro car sales reached 535,000 vehicles, a year-on-year increase of 23.5%, ranking second among all light vehicle manufacturers, with its market share rapidly approaching that of long-time leader Suzuki. The sales recovery of major light models such as the MOVE and Mira created an internal and external synergy with the strong sales of the new Rocky e-Smart Hybrid in Southeast Asia and the brand's new development phases.
In terms of exports, Daihatsu exported over 124,000 complete built units (CBU) from Japan in the full year of 2025, a 13% increase compared to approximately 110,000 units in 2024, reflecting steady growth. Looking at the global market structure, over 80% of Daihatsu's revenue is still contributed by the Japanese domestic and Southeast Asian markets. The brand has maintained the top position in Japan's light auto market for consecutive years to date, and as of 2022, it still held a 33.4% share of the light vehicle market, demonstrating extremely high barriers and resilience.
From a financial perspective, due to the fallout from the testing fraud incident in late 2023 and the complete halt of the certification process, Daihatsu recorded a direct operating loss of 5 billion yen in the 2023 fiscal year. After fully resuming production and exports in 2024, it is expected that the overall operating profit margin for the 2025 fiscal year has turned significantly positive. Although the brand's parent company, Toyota Motor, has not yet announced separate financial data for its subsidiaries, based on Daihatsu's strong sales and export figures in 2025, the brand's business certainty is being restored relatively quickly.
Daihatsu's technology focuses on three main areas: highly integrated light vehicle development, series hybrid (e-Smart Hybrid) systems, and small three-electric technology solutions coordinated with systems from Suzuki and Toyota. This series of layouts highlights Daihatsu's core strategic role as the "technical fulcrum of small platforms in the electrification era" for the Toyota Group.
Light Vehicle Chassis and Power Integration
Daihatsu has long occupied the top position in R&D for light auto commodity power in the K-car niche market. Through a high tensile steel ratio in thin sheet cars, a small body with a spacious cabin design, economic costs and fuel consumption are controlled at the lowest levels. In terms of traditional fuel power, the 0.6-liter turbocharged three-cylinder engine carried by the series is characterized by being small and reliable, capable of outputting 63 horsepower and driving bodies under 850kg, paired with a 4AT or CVT transmission, building a "driving pleasure-type small traffic ecosystem" unique to Japan.
e:Smart Hybrid Series Hybrid System
The Rocky e-Smart Hybrid launched in Indonesia carries a new energy system named the Real Series Hybrid. The driving process is provided entirely by the electric motor, while the fuel engine acts only as a generator and does not participate in mechanically driving the wheels directly. This technical approach achieves a balance between reducing structural complexity and improving driving quietness in urban settings, making it especially suitable for the electrification transition needs of Southeast Asian economic markets.
Pure Electric Core Technology Integration and Collaborative Development
The electric version of the Hijet light micro truck, produced in 2026, was the first to carry the e-Smart Electric drive system jointly developed by Toyota and Suzuki. With a battery capacity of 36.6 kWh and an integrated rear-mounted electric drive axle, it greatly optimizes the minimum cargo compartment depth and control space, with a maximum load of 350 kg, fulfilling the complementary needs of urban last-kilometer logistics and zero-emission functionality.
Fordism Reuse Classic Electric Activation
The essence displayed by the Midget X concept car is to reset the classic micro car design and hand it over to the pure electric architecture for re-evolution, demonstrating innovative exploration of modular rear storage variability.
Exclusive Engine and Transmission
The rear-drive K-open concept car once directly transplanted the power unit from the light truck "Hijet" into mass production, sharing a large number of powertrains and production platforms from Toyota, Suzuki, and other sibling enterprises to compress costs and lower the threshold for mass production in emerging markets.
Daihatsu's global presence demonstrates extreme concentration and strategic adjustment ideas, with its production bases, export networks, and product development cooperation systems primarily rooted in the Indonesian market within Southeast Asia and a few ASEAN regions.
Indonesia is Daihatsu's most important overseas production base and export hub globally. At the Karawang 6th Factory, launched in March 2026, cumulative investment is substantial, with an annual production capacity planned at 140,000 vehicles. The factory will undertake complete vehicle exports and spare parts assembly targeting ASEAN, as well as some Middle Eastern and Latin American markets. To that end, the Indonesia factory has also produced and launched electrification models represented by the Rocky e-Smart Hybrid. For the full year of 2025, Daihatsu's CBU exports exceeded 124,000 vehicles, with export partners covering countries and regions including ASEAN, South Asia, East Asia, the Middle East, Africa, and Latin America.
However, the 2023 "Collision Safety Testing Fraud" event once severely affected Daihatsu's overseas reputation and supply. At the end of December 2023, Toyota Motor announced that due to an investigation, it had suspended exports of six involved Daihatsu models to Thailand, Indonesia, Malaysia, Vietnam, and Cambodia, causing short-term delays to Southeast Asian supply chains. But through rectification and recovery, exports have been fully normalized since October 2024.
In terms of future planning in emerging global markets, Masahiro Inoue, who took over as Daihatsu President in 2024, clearly stated: "South America and Africa will be the key development markets in the next 10 years." However, due to a market restructuring strategy implemented at the end of 2025, Daihatsu from 2026 onwards will consolidate product development back to Toyota, exiting its original global complete vehicle joint development business. As an alternative, Toyota will guide Daihatsu's product definition and certification procedures in emerging markets in the role of a "compact car contractor."
In the Asian region, Daihatsu's technology and production network has become deeply bundled with Malaysia's local brand, Perodua. Major Perodua models such as the Myvi are based on derivatives of Daihatsu technology patents. Through Perodua's local assembly and export systems, Daihatsu reaches Brunei, the UK, and other right-hand drive markets in Southeast Asia. As of the end of 2025, Daihatsu has resumed full exports to the above regions.
The group's new "contraction-expansion" layout—moving from independent overseas product development to centralized management by Toyota's Compact Car Company—confirms that Daihatsu will actively focus on empowering others with mature technology over the long term, and will pursue its South America and Africa strategy with low-cost small electric vehicles.
Against the backdrop of the Toyota Group's long-term electrification and "multi-path" technology strategy, Daihatsu's role to be played in the medium term will not be that of a full-electric large-scale offensive player. Instead, while steadily returning to its internal combustion engine K-car advantages and adhering to the co-development of fuel and hybrid vehicles, it will carefully seize opportunities in small pure electric commercialization and cost-effective electric vehicles in global emerging markets.
2026 Goal: Restore Integrated Success and Continue to Expand Exports. Based on the strong sales growth trend of 2025, Daihatsu expects to maintain a global sales volume of over 675,000 units in 2026. The export proportion of hybrid and pure electric models from Indonesia and Thailand will increase slightly. The Japanese domestic K-car market continues to be steady, with the Move and Mira serving as two pillars carrying initial low-base growth momentum.
Continuously Develop Electrification Product Portfolio for ASEAN. With the Hijet EV already on the market and the Rocky e-Smart Hybrid selling well in ASEAN, Daihatsu plans to further expand its pure electric micro trucks to fully unlock last-mile distribution in Indonesia, Thailand, the Philippines, and other regions with electric freight policies in the next step. Looking further ahead, mass production of the new Midget electric micro car is given the highest priority. Pure electric model sub-categories will be promoted on a large scale in Southeast Asia over the next two years, creating customized vehicle differentiation alongside brands such as Suzuki.
Two-Track Promotion of Global New Market Penetration. After Toyota contracted and unified Daihatsu's global development decision-making, penetration of South American and African markets will become a strategic focus after 2027. Masahiro Inoue clearly expressed the view: "The blank markets of South America and Africa are extremely consistent with Daihatsu's product DNA." Maintaining export normalization in Southeast Asia and the Middle East, Daihatsu will in the future replicate the Indonesian model to South Africa, Brazil, and other regions in the form of contract manufacturing.
K-car Consumer Refinement and Brand Reshaping. The Copen will officially cease production in August 2026. Its successor is speculated to be a new rear-drive lightweight concept K-Open sports car, which will continue with a fuel power system, still using K-car specifications of 660cc displacement, giving new hope to communities pursuing pure "small but driving pleasure." If the Midget X pure electric concept car succeeds in mass production, it is not impossible that commercial innovation will lay the foundation for the enterprise to reshape its light micro business system.
Overall Strategy — Not Seeking Expansion but Survival and Profit. Within the long-term technology strategy framework led by Toyota, Daihatsu's future will maintain combustion profit and compliance as its fundamental reliance, holding onto its "King of K-car" position before global share continues to erode, thereby ensuring its own profit growth and the balance of the group's overall electrification profit system. By 2028, the target operating profit margin is set at no less than 5%, to steadily embrace the wave of batchable mild electrification.
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