The third generation of the Daihatsu Charade (G100) debuted in 1987. It originally shipped with a 1.0 L 3-cylinder engine (CB23) and 1.3 L four-cylinder with single carburetor (HC-C). A 1.0 L turbo diesel, a 1.0 L twin-cam turbo (CB70)(CB80) , named GTti and delivering 105 hp JIS (77 kW), a 1.3 L fuel injected 4-cylinder (HC-E) and 3-cylinder (CB90) were later added. It was released in a 3-door and a 5-door hatchback. A 4-door sedan was released with the 1.3 L EFI engine in 1988. In Japan a deluxe version was available, dubbed GTxx, featured a sunroof, power windows, air-con and power steering.
The third-generation car was sold in the United States for just four years, from 1988 through 1992. The car sold poorly, perhaps because of its high price, poor sale sites, and unfortunate translation in English, and the company withdrew permanently from the US market. Sales for 1989 were 15,118.
Not all export markets were featured with all the bodywork variants (eg. Singapore received the 3-door hatch only, while Malaysia got the 5-door), but Europe received all three variants (with the sedan reserved for Central Europe).
In the Australian market the GTti was unavailable and the turbocharged petrol Charade used the carburettor engine (CB60/61) from the previous generation.