Major reform for Daihatsu
Changes are likely to occur in Japan’s kei-class market after Daihatsu suspended shipments of its models in the wake of revelations it falsified vehicle-safety tests.
The marque has long been the country’s top domestic mini-car seller, but its market share is expected to drop because of the scandal.
“We have been selling Daihatsu models with confidence and trust due to the company being a member of the Toyota group,” says the head of a distributor in the Osaka prefecture that has dealt with the brand for about 50 years.
Regular dealers specialise in selling new vehicles of a particular carmaker, while distributors – often comprising repair shops and used-car dealers – sell new vehicles purchased from the dealers, reports The Japan News.
The distributor began fielding inquiries from customers after Daihatsu announced on December 20 that it had identified irregularities relating to 64 models. As of April, Daihatsu had 58 dealers with 778 outlets and had ties with almost 30,000 distributors.
If the suspension of deliveries drags out, some distributors that handle vehicles from various marques may give Daihatsu the cold shoulder.
In Japan, kei-class models account for nearly 40 per cent of new-car sales. Daihatsu has long been the market leader, selling about 560,000 units there in the 2022 fiscal year for a 33.4 per cent market share, and ahead of Suzuki on 30.5 per cent and Honda with 17.6 per cent. Daihatsu has come top place for 17 consecutive years.
Its latest sales figures are robust with 552,352 units registered in Japan between January and November for a year-on-year increase of 4.8 per cent.
According to data compiled by the Japan Light Motor Vehicle and Motorcycle Association, Daihatsu’s Tanto and Move ranked second and fifth, respectively, in terms of volumes.
However, shipments of 27 models, including popular models and various vehicles supplied to Toyota and other companies, have been suspended. The impact of this move is expected to be reflected in sales figures.
Daihatsu has decided not to attend Tokyo Auto Salon, one of the world’s largest exhibitions for custom-made cars, set to be held in Chiba from January 12-14, according to sources. The company is not expected to participate in exhibitions until it resolves its problems.
Daihatsu halted domestic production at all four of its Japanese factories after admitting it forged the results of safety tests for its vehicles for more than 30 years.
A spokesperson told CNN the shutdown will last through at least the end of January, affecting roughly 9,000 employees who work in domestic production.
The move comes as Daihatsu grapples with a deepening safety scandal that Toyota has described as shaking “the very foundations of the company” and that “fundamental reform is needed to revitalise Daihatsu”.
“This will be an extremely significant task that cannot be accomplished overnight,” adds Toyota, with a review of management, operations and how the business is structured.
“We recognise the extreme gravity of the fact that Daihatsu’s neglect of the certification process has shaken the very foundations of the company as an automobile manufacturer.”
