Toyota Motor Corp. said Friday it will make Daihatsu Motor Co. a wholly owned subsidiary in August as the world's top automaker seeks to revamp its low-priced small-car business amid growing demand in emerging markets.

Toyota, which holds a roughly 51 percent stake in Daihatsu, will acquire the remaining shares through a share exchange allocating 0.26 Toyota share for each Daihatsu share.

Daihatsu, which makes the Tanto and Cast, is expected to be delisted from the first section of the Tokyo Stock Exchange on July 27, with the share exchange scheduled to take place on Aug. 1.