The new president of Daihatsu recognizes opportunities in Africa and South America

Daihatsu President Masahiro Inoue is setting his sights on South America and Africa as the next frontiers for growth in the compact car market. Inoue, who recently took the helm at Daihatsu, believes that the demand for compact cars in these regions is on the rise due to the prevalence of narrow roads.

While focusing on expanding into these emerging markets, Inoue is also working diligently to restore Daihatsu’s reputation following a certification scandal that rocked the company last year. The internal probe revealed decades of irregularities in safety certification results, leading to a halt in all vehicle shipments.

Inoue emphasized the importance of maintaining Daihatsu’s reputation as a manufacturer of small, affordable cars while seeking new sources of growth. He highlighted the potential for local car production in many countries, which could help boost employment opportunities.

Despite the challenges facing the domestic market, particularly in Japan where the kei car market may shrink due to demographic trends, Inoue remains optimistic about Daihatsu’s future. He acknowledged the difficulties in making profits from smaller vehicles but noted that the company’s sales of service parts and accessories have helped offset potential losses.

Looking ahead, Inoue hinted at the possibility of expanding Daihatsu’s presence in overseas markets to compensate for any potential decline in the domestic market. With a focus on quality, low-cost manufacturing, Inoue believes that Daihatsu is well-positioned to capitalize on the growth opportunities in South America and Africa.