Daihatsu’s dealership is situated in Ikeda, Osaka Prefecture, the minicar market in Japan set to go through major changes as the company has halted car models shipment following revelations of vehicle-safety tests falsification.
The suspension of Daihatsu’s car shipments may lead to a decline in their market share after the company has long held the top spot in the minicar market in Japan.
Many dealerships across Japan that have been associated with Daihatsu models for decades are now facing the loss of customer trust and confidence. This is because of the irregularities relating to 64 models that were identified by Daihatsu. The suspension of shipments may lead to a decrease in market share for the company.
Customers who were expecting to receive Daihatsu vehicles, started to turn to other brands after the announcement of shipment suspension. If the suspension drags on, distributors may give Daihatsu a cold shoulder leading to a significant reduction in the company’s market presence.
Daihatsu’s impact is not limited to its own sales but may also affect other automakers that partnered with the company as well. The recent scandal is expected to have a long-term impact on the minicar market.
In Japan, minicars remain popular, accounting for nearly 40% of new car sales. Daihatsu has dominated the market over the years and has sold majority of the minicars, including holding the highest market share for 17 consecutive years.
Daihatsu’s recent shipment suspension is expected to have a detrimental effect on its sales figures, similar to what Mitsubishi Motors Corp. experienced following a similar scandal in 2016.
Daihatsu has declined participation in the upcoming Tokyo Auto Salon as well as the 2023 Fukuoka Mobility Show due to the fraudulent activity that resulted in shipment suspension. This move to suspend participation in exhibitions will likely be maintained until the company resolves its problems.
The suspension of car shipments by Daihatsu has not only impacted the company itself but also its direct partners and competitors. It remains to be seen how Daihatsu will overcome this challenging period in its history.
