Daihatsu is to cease selling new cars in Europe from January 2013.
However, according to the company, after-sales service including spare parts supply and manufacturer's warranty, will continue to be provided.
The company said that the high development costs of meeting future European automobile regulations and the recent sharp depreciation of the Euro against the Japanese Yen were responsible for the decision.
Daihatsu Ireland, independent distributors of the brand in the Irish market, said they were saddened by the news as the Daihatsu models were extremely reliable and had always offered economical motoring in the small car segment.
They reassured Daihatsu owners that they will continue to provide warranty, parts and service support for the cars on the road.
There are currently 32 Daihatsu dealers in Ireland, however the brand sold just 26 cars in 2010.