VENTURE CAPITAL POST

Daihatsu's president indicated that Toyota will oversee model certification to rebuild trust following a safety test scandal.

Toyota and Daihatsu have reached an agreement which is believed to be executed by August 2016. Under the agreement, Daihatsu will become a wholly owned subsidiary of Toyota by way of share exchange. Through the Toyota shared key technologies, Daihatsu will produce price efficient mini cars for itself and Toyota. Toyota President is believed to look for opportunity to dominate Indian car market snatching from Suzuki.

Toyota Motor is seriously contemplating a buyout of Daihatsu Motor Co., which would give the company direct access to Daihatsu’s 660 cc mini vehicles. This investment would fetch Toyota great returns in the emerging markets and also enable leveraging of the low-cost production model that has long been Daihatsu’s competitive advantage.

Chinese automakers from state-owned FAW Co to Zhejiang Geely are racing to sell more eco-friendly cars as they try to meet tough fuel economy rules due next year as part of Beijing's battle against pollution.