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Daihatsu to re-enter China

Jorvan From www.gasgoo.com| June 27 , 2007

Recently, FAW and Japanese Daihatsu have launched their new model XENIA in the Chinese market. It will be an uphill struggle for Daihatsu to succeed in the highly competitive Chinese market, given its weak branding and limited sales channels.

It is reported that apart from the XENIA engines and automatic transmissions which are imported from overseas, many other parts are produced in China by FAW and Toyota parts suppliers. The preparation for the launch of the new model took between 6 months to a year.

Sales network has been identified as a crucial key to Daihatsu's success. Company officials said that selling Terios under the Toyota sales channel was not a wise strategy. Therefore, Daihatsu has decided to build its own independent sales network.

Daihatsu is currenty utilizing FAW Jiabao's sales networks to distribute its products. It has selected 70 sales outlets, and plans to expand to 120 by the end of this year. XENIA sales are forecasted to exceed 10,000 units this year, and sales in the future are expected to reach 30,000 units per annum.

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