Daihatsu Xenia

Daihatsu is the maker of China's best-selling passenger cars, yet the Japanese company has lacked a presence of its own in the world's biggest auto market. This is about to change.

Back in the mid-1980s, Daihatsu struck a licensing deal with Tianjin Xiali, a then-new automobile manufacturer, which resulted in the Chinese production of the Daihatsu Charade. This agreement has long expired, but Xiali, which now belongs to the country's biggest auto company, FAW, is still the best-selling brand in China. And its main products are still based on the old Charade.

Once Toyota made huge inroads into China, it was inevitable that its microcar specialist subsidiary, Daihatsu, would gain a foothold. The right moment came at Auto Shanghai 2007, where Daihatsu introduced its Xenia minivan, which will be produced at the FAW Jilin factory.

The Xenia, which was originally available in ASEAN markets, is a seven-seat minivan powered by 1.3- and 1.5-liter four-cylinder gas engines. It will retail for $9,100 to $13,000 in China.

FAW Jilin plans to set up a national network of dealerships and after-sales operations. Daihatsu's target is 30,000 units of its new model sold in 2008.