Toyota May Fully Acquire Daihatsu Affiliate

Toyota Motor Corp. says it may increase its holding in minicar specialist Daihatsu Motor Corp. or buy the entire 49% it doesn’t already own.

A buyout would cost about 361 billion yen ($3 billion), according to Bloomberg News. Toyota acquired a stake in Daihatsu in 1967 and became its 51% owner in 1998.

Daihatsu has been Japan’s best-selling minicar brand for nine years. The company currently controls about 31% of the domestic market for such vehicles, which are powered by small engines that displace less than 1 liter.

Last week The Nikkei reported the affiliate will supply Toyota with a new line of “tall wagon” minivehicles, with the first model to debut as soon as this autumn. Daihatsu already makes four minicar models for Toyota and produces its own wagon-style vehicle, the Tanto.

Toyota denies a Nikkei report that it is in talks about a partnership with Daihatsu rival Suzuki Motor Corp. Analysts note that owning Daihatsu outright would enable Toyota to lower the unit’s operating costs and more directly set its product strategy.