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Daihatsu, a prominent Japanese automobile manufacturer, was officially established on March 1, 1951, as the successor to Hatsudoki Seizo Co. Ltd, a company founded in 1907 that initially focused on developing gasoline-powered engines for small, stationary power plants under the influence of Osaka University's Engineering Department.
From its inception until 1930, Hatsudoki primarily manufactured steam engines for Japanese National Railways and rail carriages for passenger transportation before shifting its attention to railroad diesel engines in collaboration with Niigata Engineering and Shinko Engineering Co., Ltd.
Daihatsu's decision to concentrate on automobile manufacturing and related technologies was largely influenced by the presence of Ford and General Motors in Japan during the late 1920s and 1930s, both of which had established factories and gained significant market share before their appropriation by the Imperial Japanese Government prior to World War II.
Throughout the 1960s, Daihatsu began exporting its vehicles to Europe, although major sales success remained elusive until well into the 1980s.
In Japan, the company operated as an independent automaker until 1967, when Toyota Motor Corporation became a major shareholder, initially acquiring a 16.8% stake that was later increased to 33.4% in 1995 and 51.2% in 1998.
Following the global financial crisis of 2007-2008, Daihatsu's European sales experienced a sharp decline, prompting the company to withdraw from the European market by 2013 due to the persistently strong yen and difficulties in maintaining a profitable export business.
In recent years, Daihatsu has made significant investments in Indonesia to establish a factory producing low-cost cars under the Low Cost Green Car scheme, and in 2016, it became a wholly-owned subsidiary of Toyota Motor Corporation.
The two companies have since collaborated on various initiatives, including the development of compact vehicles for emerging markets and the creation of a new vehicle architecture called the Daihatsu New Global Architecture (DNGA).