Toyota has revealed that it is considering taking full control of Daihatsu in a potential deal valued at $3.1 billion.
The Japanese giant currently holds a controlling 51.2 per cent stake of Daihatsu, which in 2015, was the weakest performing company within the group after sales for the minivehicle maker dropped by 13.3 per cent.
Nevertheless, it is reported that Toyota is interested in purchasing the rest of the small manufacturer in its attempts to capitalize on rising demand for small cars in India and a number of other rising economies. Additionally, taking full control of the firm would it to slash procurement costs.
In a statement, Toyota said: “We are constantly considering a number of possibilities relating to Daihatsu, such as partnerships or business restructuring, including making the company a fully owned subsidiary.”
While speaking with Reuters, Christopher Richter, a senior research analyst at CLSA, said: “I can easily see the Daihatsu brand used in the same way that VW uses Skoda or Renault uses Dacia or Nissan uses Datsun: as a low-cost, sub-premium brand to the core brand.”
Note: Daihatsu concepts at Tokyo Motor Show pictured.