Dai is cast

TOYOTA Australia will not have a light car to compete with Korean-built super-lights like Holden’s new Barina until it can source the next generation of Daihatsu micro cars from a low-cost country outside Japan.

That was the message from Toyota Australia boss John Conomos at last month's Tokyo motor show - just days before the Australian market leader launched the replacement for its dominant light-car contender.

Priced from $14,990, the all-new Yaris is not in the same league as the Daewoo-built Barina from archrival Holden, which goes on sale in December priced from $12,990.

While GoAuto has learned Yaris will also be produced in Thailand as early as next year, providing Toyota Australia with a potential alternative for a sub-$15,000 vehicle, Mr Conomos indicated the next generation of Daihatsu models, built outside Japan and badged as Toyotas, was the most likely option.

"Part of the plan is to find emerging countries to source Daihatsu from. Japanese-built small cars are not as price-effective as Korean-sourced cars," said Mr Conomos.

"Production of Daihatsu products outside Japan is a consideration. We’re looking at Eastern Europe and Asia - those countries can produce cars at a substantially lower cost.

"Considering the two key elements we need - low wages and a good supplier base - there are theoretically only a few countries, like China, Indonesia, India or Russia.

"The price-sensitive market is very tough from a profitability point of view. Our strategy is secret - it’s a most serious issue to be tackled.

"Nothing is decided - we’re studying it … We’re following, not leading. It’s still a generation way." Mr Conomos said the Toyota-owned Daihatsu brand, which will cease to be made available here via Toyota Australia in March 2006 due to increasing losses over a number of years in Australia, could be resurrected Down Under.

But he indicated Toyota-badged versions of future Daihatsu vehicles were more likely.

"We want the Daihatsu brand to play a role in Toyota and we’ve thought a lot about whether we’d resurrect the brand here or rebadge them as Toyotas," he said. "All those things are deeply under consideration."Toyota’s Aygo micro-car has been ruled out for sale in Australia, and, following our exclusive report last week, the company has also moved to rule out the Yaris-based Vios sedan.

Toyota’s US-market Scion youth brand also remains under consideration for Australia.