Based on the outgoing...

Based on the outgoing Toyota RAV4 platform, the off-roader will be bigger than its predecessor and offer a realistic budget alternative to models such as the new Land Rover Freelander and Vauxhall"s Frontera replacement.

While the car shown here is badged the D-Compact, it gives a clear indication of what Terios buyers have to look forward to. The nose is similar to that of the Sirion supermini"s, while at the rear a tailgate-mounted spare wheel is expected to give the car a traditional 4x4 appearance. And thanks to its Toyota-derived all-wheel-drive system, the Daihatsu should have the off-road capability to match its styling.

The newcomer will be powered by a choice of 1.5 and 2.0-litre petrol engines, but it"s not until an oil-burning unit is added to the range that sales are likely to reach their peak.

Petrol variants will appear in showrooms next March, while the diesel - which is being developed by the company specifically for Europe - is tipped to join the line-up by the end of 2006. Bosses hope the updated design and

technology will have a dramatic impact on sales. The firm"s UK importer is looking to shift 4,000 new examples in the UK over 12 months - that"s four times more than the current Terios.

However, as this sketch of Daihatsu"s roadster concept (image) proves, the company doesn"t only do four-wheel drives. The show model will be unveiled at the German expo, and could point the way to a replacement for the Copen. It may also hint at the maker"s plans for an expanding sports car line-up.