, 1957 Daihatsu was officially formed on March 1, 1951, as a successor to
Hatsudoki Seizo Co. Ltd, founded in 1907, as part of Hatsudoki's major restructuring. Hatsudoki's formation was largely influenced by the Engineering Department's faculty of
Osaka University, to develop a gasoline-powered engine for small, stationary power plants. From the beginning of the company until 1930, when a prototype three-wheeler truck was considered and proposed, Hatsudoki's focus was largely steam engines for
Japanese National Railways and included rail carriages for passenger transportation. The company then focused on railroad diesel engines, working with Niigata Engineering and Shinko Engineering Co., Ltd. Before the company began to manufacture automobiles, their primary Japanese competitor was
Yanmar for diesel engines that were not installed in a commercial truck to provide motivation. The company's decision to focus on automobile production and related technologies was influenced by the early days of automobile manufacturing in Japan during the late 1920s and 1930s, when both
Ford and
General Motors had opened factories in Japan and enjoyed a considerable market share. Ford opened a factory at Yokohama in March 1925 and in 1927 GM opened
Osaka Assembly until both factories were appropriated by the Imperial Japanese Government before
World War II. During the 1960s, Daihatsu began exporting its range to Europe, where it did not have major sales success until well into the 1980s. In Japan, the majority of Daihatsu models occupies the
kei car segment. , 1960s Daihatsu was an independent automaker until
Toyota Motor Corporation became a major shareholder in 1967 as the Japanese government intended to open up the domestic market. According to Toyota, it was first approached by Sanwa Bank, banker of Daihatsu. In 1995, Toyota increased its shareholding in the company from 16.8% to 33.4% by acquiring shares from other shareholders: banks and insurance companies. Following the
2008 financial crisis, Daihatsu's sales in Europe plummeted, from 58,000 in 2007 to 12,000 in 2011. Daihatsu pulled out of the European market by 2013, citing the persistently strong
yen, which makes it difficult for the company to make a profit from its export business. In August 2011, Daihatsu invested 20 billion yen ($238.9 million) in Indonesia to build a factory that produces low-cost cars under the
Low Cost Green Car scheme. The construction had been initialized on 70,000 square meters on May 27, 2011 and started operations at the end of 2012, producing up to 100,000 cars per year. In August 2016, Daihatsu became a wholly owned subsidiary of Toyota Motor Corporation. In January 2017, Daihatsu and Toyota jointly established an internal company to develop compact vehicles for emerging markets called the 'Emerging-market Compact Car Company'. Under the internal company, Daihatsu is responsible of product planning and quality planning of the vehicles, while both Toyota and Daihatsu are jointly responsible of product and business planning. To support the company, Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. (TMAP-EM) in Thailand was renamed to Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (TDEM). In October 2016, Daihatsu and Toyota announced a new
vehicle architecture called the
Daihatsu New Global Architecture (DNGA) was being developed. The second-generation
Mira e:S was revealed as the first DNGA model in 2017, although the company later revised the definition of DNGA and launched the
fourth-generation Tanto claiming it as the first DNGA model instead. From 2020 to 2022, Daihatsu trained employees from less-profitable sister company
Toyota Motor East Japan to improve the latter's systems on development and production of small cars.
Safety scandal In April 2023, Daihatsu was found to have rigged safety tests for 88,000 cars, most of which were sold as
Toyota Yaris to Thailand, Mexico and
Gulf Cooperation Council countries. The door trim of
side-collision test cars was notched in order to minimize the risk of injury, but the modification was not applied to production vehicles. In December 2023, the company halted shipments of 64 models, including products sold by
Mazda,
Subaru, and two dozen models branded as Toyotas, after safety investigations uncovered misconduct far greater in scope than previously expected. In some models, the
airbag control unit used in testing was different from the part installed on vehicles sold to the public. Results of speed tests and
headrest impact tests had also been falsified. The cases went back as far as 1989 and became particularly prevalent after 2014. Affected markets included Japan as well as Bolivia, Cambodia, Chile, Ecuador, Indonesia, Malaysia, Mexico, Peru, Thailand, Uruguay, and Vietnam. The company announced that it would shut down all four of its manufacturing plants in Japan until the end of January 2024, but production was halted until February through April 2024 when the shipment ban was also lifted. ==Company timeline==