Daihatsu to sell cars in China under FAW brand

Shanghai, July 17 (Gasgoo.com) Japanese carmaker Daihatsu Motor Co. said today that it will start selling vehicles in China under its Chinese partner FAW's brand from the autumn, as sales under its own brand remain sluggish due to weak brand recognition, Dow Jones reported.

Daihatsu, a smaller-car subsidiary of Toyota Motor, began selling its Xenia compact minivan in 2007 and initially planned to produce 30,000 vehicles a year. But sales of the model totaled 5,100 vehicles in 2008.

Daihatsu sells the Xenia only in China, and produces the model in partnership with FAW Jilin Automobile Co. Daihatsu's slow sales in China is a rare setback, as the country is one of the few fast-growing auto markets amid a global economic slowdown.

The Japanese car company said it will continue with its licensing agreement to share production technology with its Chinese partner.

The Osaka-based carmaker hasn't decided yet whether it will use its own brand again in China, a company spokeswoman said.