Daihatsu introduced the second generation of the Terios in 2006, and, just like its predecessor, it came with an unusual design for an off-roader.

Daihatsu was keen to offer the Terios on the European market, but it had to improve it to comply with the Euro 3 emission standards that were introduced in 2000.

Daihatsu built the Terios as a new range for small off-road vehicles, and it suited better in the urban environment thanks to its small size.