Daihatsu introduced the Altis on the Japanese market as a badge-engineered Toyota Camry XV20 wide-body in 2000.
Toyota took control over Daihatsu in 1998 when it increased its shares into holding company from 33.4% to 51.2%. One of the first decisions was to make the smaller brand profitable and stopped the production of the low-selling model Daihatsu Applause with the eighth generation of the Toyota Camry wide-body XV20.

At the front, the car featured horizontal, angular-looking headlights with. The wrapped-around plastic bumper incorporated a center lower grille flanked on its sides by fog lights, which were offered as an option. The main grille placed between the headlights was narrow, with a chromed slat on the upper side and the D-badge in the middle. Its raked windshield opened the way to the spacious cabin, while in the back a flat and horizontal trunk lid concluded the car’s profile.
Inside, the roomy cabin provided comfortable seats for five, despite the center tunnel that crossed the car from front to back. Its front bucket seats were profiled more for comfort, with almost non-existent side bolstering. The center stack sported the audio and climate controls, with the latter being on the lower side. On the center console, the carmaker installed the gear selector for the automatic transmission.

Under the hood, Toyota installed a 2.4-liter inline-four engine for the Daihatsu Altis. Unlike other countries, where Toyota sold the Camry with a V-6 engine, the Altis received only the four-pot unit.