, commonly known as Daihatsu, is a Japanese automobile manufacturer and one of the oldest surviving Japanese internal combustion engine manufacturers. The company's headquarters are located in Ikeda, Osaka Prefecture.
Historically, Daihatsu was well known for building three-wheeled vehicles and off-road vehicles, while currently the company offers a range of kei car models, along with kei trucks, kei vans and other larger small cars in Japan. The company also produces entry-level compact cars in Japan and Southeast Asia, which are also supplied to global emerging markets under the Toyota brand.
, Daihatsu's presence has been limited to Japan, Indonesia, and Malaysia (as Perodua), where the company has significant research and development resources, manufacturing facilities and sales operations.
The company has been a wholly-owned subsidiary of the Toyota Motor Corporation since August 2016. , Daihatsu sales account for 4 per cent of the Toyota Group's vehicle sales' total.
Name
The name "Daihatsu" is a combination of the first symbol (kanji) of Ōsaka (大) and the first of the word . In the new combination the reading of the "大" is changed from "ō" to "dai", giving "dai hatsu".
History
Daihatsu was officially formed on March 1, 1951 as a successor to Hatsudoki Seizo Co. Ltd, founded in 1907, as part of Hatsudoki's major restructure. Hatsudoki's formation was largely influenced by the Engineering Department's faculty of Osaka University, to develop a gasoline-powered engine for small, stationary power plants. From the beginning of the company until 1930, when a prototype three-wheeler truck was considered and proposed, Hatsudoki's focus was largely steam engines for Japanese National Railways and included rail carriages for passenger transportation. The company then focused on railroad diesel engines, working with Niigata Engineering, and Shinko Engineering Co., Ltd. Before the company began to manufacture automobiles, their primary Japanese competitor was Yanmar for diesel engines that were not installed in a commercial truck to provide motivation.
The company's decision to focus on automobile production and related technologies was influenced by the early days of automobile manufacturing in Japan during the late 1920s and 1930s, when both Ford and General Motors had opened factories in Japan and enjoyed a considerable market share. Ford opened a factory at Yokohama in March 1925 and in 1927 GM opened Osaka Assembly until both factories were appropriated by the Imperial Japanese Government before World War II.
During the 1960s, Daihatsu began exporting its range to Europe, where it did not have major sales success until well into the 1980s. In Japan, the majority of Daihatsu models occupies the kei car segment.
Daihatsu was an independent automaker until Toyota Motor Corporation became a major shareholder in 1967 as the Japanese government intended to open up the domestic market. According to Toyota, it was first approached by Sanwa Bank, banker of Daihatsu. In 1995, Toyota increased its shareholding in the company from 16.8 percent to 33.4 percent by acquiring shares from other shareholders: banks and insurance companies. At the time, the company was producing mini-vehicles and some small cars under contract for Toyota. Toyota, by owning more than a one-third stake, would be able to veto shareholder resolutions at the annual meeting. In 1998, Toyota increased its holding in the company to 51.2 percent by purchasing shares from its major shareholders including financial institutions.
Daihatsu pulled out of the European market by 2013, citing the persistently strong yen, which makes it difficult for the company to make a profit from its export business. Following the financial crisis of 2007–2008 Daihatsu's sales in Europe plummeted, from 58,000 in 2007 to 12,000 in 2011.
In August 2011, Daihatsu invested 20 billion yen ($238.9 million) in Indonesia to build a factory that produces low-cost cars under the Low Cost Green Car scheme. The construction had been initialized on 70,000 square meters on May 27, 2011 and started operations at the end of 2012, producing up to 100,000 cars per year.