Japanese automaker, Toyota Motors Corporations recently announced their plan to set up an internal company along with its fully-owned subsidiary Daihatsu Motor Co., Ltd. (Daihatsu).

With this new company, both companies aim to develop and launch competitive compact vehicle for emerging-markets, from product planning to production preparation. Daihatsu will take the lead for this unified development based on the “DNGA”, a Daihatsu vehicle architecture now being developed. Toyota, on the other hand, will provide the knowledge and resources to make this possible.

"With the establishment of the internal company, Toyota intends to learn the very fundamentals of Daihatsu's competitiveness and change the way we work," said Shigeki Terashi, Toyota Executive Vice president.

"We will further advance our know how cultivated in the manufacturing of mini vehicles and be a Toyota Group driving force, not only for mini vehicles, but also for compact vehicles for emerging markets. For Daihatsu, this initiative represents an important opportunity for enormous and sustainable growth. Separately, both companies confirmed today that Daihatsu will continue to take the lead in the development of the Daihatsu brand," said Masanori Mitsui, Daihatsu president.

At the moment, there are various cars in available in the Asia-Pacific market which are a result of Toyota and Daihatsu's collaborative efforts. In the Philippines, these cars are the Toyota Wigo and Toyota Avanza. Outside the country, these cars are also known as the Agya (Wigo) and Xenia (Avanza) with Daihatsu badges.

The internal company set up by the two companies will tentatively be established in January next year.