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Toyota to take over Daihatsu in vehicle development for emerging markets

Will this be a sign of good things to come for the two companies?

Toyota will be handling the vehicle development that Daihatsu does for markets like ours. PHOTO BY SAM SURLA

It seems the Daihatsu crash certification scandal is finally coming to a close as Toyota Motor Company is making some big moves to resolve and prevent this from happening again.

How? Simple, by taking over Daihatsu’s operations in overseas markets. This means that Daihatsu’s operations in its home market of Japan remain unaffected.


Currently, for the Asian market, Toyota and Daihatsu plan, develop, produce, and certify vehicles under a blanket company called the Emerging-market Compact Car Company.

Directly under TMC’s business planning and operation unit is Toyota Motor Asia Pacific (TMAP), which works with Toyota Daihatsu Engineering and Manufacturing (TDEM) for products that will eventually get seeded out to markets like ours.

Under the joint decision of Toyota and Daihatsu to reform the overseas business structure, said Emerging-market Compact Car Company will be dissolved.


Toyota will be responsible for the entire process from product planning to certification, under the new Toyota Compact Car Company. Essentially, Daihatsu will still be doing the dirty work for development, with Toyota overseeing everything.

As for TDEM and TMAP, the two companies will be renamed Toyota Motor Asia (TMA), which aims to make the two companies more self-reliant and collaborate. These changes are scheduled for June 2024, with the larger ones following new models.

This should mark the return of more affordable Toyota-developed products in our market. PHOTO BY SAM SURLA

So, what does this mean? It’s too early to tell the fate of the current Daihatsu New Global Architecture (DNGA) vehicles. Will we see cheaper Toyota New Global Architecture (TNGA) models in their place, or will more stringent standards be in place?

All we know is that Toyota is on a mission to redeem itself and make better products.

Sam Surla

Sam is the youngest member of our editorial team. And he is our managing editor (believe it or not). He specializes in photography and videography, but he also happens to like writing about cars a lot.