On June 30, Daihatsu Motor Co., a subsidiary of Toyota Motor Corporation, announced that due to a shortage of parts from suppliers, it will suspend operations at its vehicle assembly plants in Japan.
According to the announcement, operations at the Shiga No. 2 Plant will be halted for four days from July 8 to July 11, affecting production of the Rocky/Raize/REX and Tanto/Chiffon models. In addition, the Oita Nakatsu No. 2 Plant will suspend operations for five days from July 7 to July 11, impacting production of the Mira e:S/PIXIS EPOCH/PLEO PLUS, TAFT, MOVE/STELLA, and MOVE CANBUS models.
Founded in 1907 as Hatsudoki Seizo Co., Ltd. for the manufacture and sale of internal combustion engines, the company was renamed Daihatsu Motor Co., Ltd. in 1951. While the Daihatsu name may not be widely known in the Chinese market, the company has a history spanning 118 years. As one of Japan’s most popular manufacturers of kei cars and micro vehicles, Daihatsu is headquartered in Ikeda, Osaka Prefecture, and operates six plants across Ikeda, Kyoto, and Kyushu. In 1998, Toyota acquired a 51.2% stake in Daihatsu, making it a wholly owned subsidiary focused on small-car production, contributing around 4% of Toyota’s global sales.
Daihatsu has faced serious challenges in recent years. In April 2023, it admitted to irregularities in side-collision safety tests affecting 88,000 vehicles. By December of the same year, all domestic plants were suspended following the discovery of falsified test data. In January 2024, Japan’s Ministry of Land, Infrastructure, Transport and Tourism issued a corrective order, revoking production approval for three models. As a result, President Soichiro Okudaira and Chairman Jun Matsubayashi resigned in March 2024. In April, Daihatsu announced structural reforms: Toyota would take over full responsibility for small car development and certification, while Daihatsu would focus on actual development, repositioning itself as a “mobility company centered on micro vehicles.”
The scandals and factory suspensions had a severe financial impact. Daihatsu reported an operating loss of 5 billion yen (approx. RMB 230 million) in fiscal year 2023 (April 2023–March 2024), its first loss in 31 years. Revenue dropped 21% year-on-year to 1.181 trillion yen (approx. RMB 54.62 billion), while sales volume fell 22% to 440,000 vehicles.
As of press time, it remains unclear how the latest suspension at two plants will affect overall sales. In its announcement, Daihatsu expressed: “We sincerely apologize to our customers and all stakeholders for the concerns caused by this suspension due to insufficient parts supply from our suppliers.”
