Toyota Kirloskar Motor (TKM), the world's biggest car-maker, is planning to bring Daihatsu small cars to India, says a recent report in the Economic Times. Daihatsu Motor Co is the oldest Japanese car manufacturer, and is known for its range of smaller models. Toyota, which is currently in the process of making Daihatsu a wholly owned subsidiary, will sell the small cars of the company with Toyota badge in the domestic market.

Toyota aims to challenge the dominance of Maruti Suzuki and Hyundai in the burgeoning Indian small car segment with the introduction of Daihatsu small cars, the Economic Times report says. Maruti Suzuki Alto is the bestselling car in India, and the small car segment contributes a major chunk in the total sales of Maruti Suzuki.

Daihatsu small cars are expected to ply on Indian roads in the next two years. Daihatsu models will be sold in India with Toyota badge as the company thinks that establishing a new brand will be difficult at this point of time. Toyota is expected to complete the buyout process by August this year. Although Toyota currently has models like Etios Liva in the small car segment, the car had failed to impress buyers in India.

Cardandbike reports that a Daihatsu team has already started working on the small car project for the Indian market and is also analyzing the possibility of introducing the existing models into the market.