India is a very competitive market, and specially the small car segment is dominated by Maruti Suzuki. Toyota is now looking to lock horns with India's largest carmaker by bringing in the Daihatsu brand, but selling it under the Toyota badge.
The Japanese carmaker is looking to bring the cars into India in another couple of years and the reason Toyota is going to sell it under its name is because of the competition. Bringing a new brand and pitting it against established carmakers will be tough.
According to Naomi Ishii, the Managing Director of Toyota Kirloskar Motors, selling the Daihatsu brand under Toyota's name will give the company a stronghold in the very congested small car market in India.
The Daihatsu cars will be sold through Toyota dealerships and this will also be a cost effective method for the carmaker. Toyota is the largest carmaker in the world, but not in India. The best selling models for Toyota in the India market are the Innova, Etios, and the Fortuner.