Daihatsu Leaves China

While other automakers see rivers of milk and honey in China and try anything possible to expand their presence in the country, Daihatsu is continuously losing ground following the economic chaos. As a result, Japan's Daihatsu Motor decided to stop operations in China and leave the country, with production and sales handed over to its local Chinese partner FAW.

According to edmunds.com, the Xenia, a compact multipurpose vehicle based on Toyota Avenza, will still be sold in China but wearing FAW's badge. It will be produced by FAW Jilin Auto, a division of FAW Group, the source added.

But the company is still doing fine outside China, as it recently launched a new model in the UK which is expected to benefit, thanks to its small displacement engine, from the government scrappage scheme. The £10,770 Materia is powered by 1.5l 16V variable valve timing engine, delivering some 103 horsepower. It can get you to your destination with a top speed of 106 mph (170 km/hour). Fuel economy rates at 46.3 mpg (6.1l/100 km) and CO2 emissions do not exceed 169g/km.

As for the interior comfort and infotainment, the Materia comes equipped with AC, central locking alarm, stereo CD player, electric windows and mirrors. The car is offered with a 5-year, unlimited mileage warranty.

“In Japan, the Materia has attracted a cult following, and understandably so: practical, economical, spacious, and innovative, the Materia is a superbly stylish urban warrior that’s equally happy taking the whole family on holiday, or nipping about in the city," Paul Hegarty Daihatsu Vehicle Distribution director said.