Toyota Plans HEV Production in Bangladesh

Toyota Tsusho Corporation has outlined plans to establish a vehicle manufacturing operation in Bangladesh, including a Hybrid Electric Vehicle manufacturing industry, with work scheduled to begin in 2027 and full-scale production targeted for 2029.

The plan was disclosed during a courtesy meeting between Prime Minister Tarique Rahman and a high-level Toyota Tsusho delegation led by Vice Chairman Ichiro Kashitani at the Prime Minister's Office in the Bangladesh Secretariat on Tuesday (October 6). Government officials said the proposed initiative is expected to support employment, industrialisation, technology transfer and skilled human-resource development.

Vehicle manufacturing and investment

The Toyota Tsusho delegation briefed the prime minister on plans to establish a Toyota vehicle manufacturing plant in Bangladesh. The two sides also discussed expanding Toyota's operations, potential investment opportunities and the company's long-term business plans.

The proposed Hybrid Electric Vehicle industry will be developed at an economic zone under Toyota Bangladesh's “With Bangladesh, For Bangladesh” development vision. Work is expected to start in 2027, with full-scale production targeted for 2029.

Toyota Tsusho's own global network information confirms that the company maintains a liaison office in Dhaka. Toyota Bangladesh's official website identifies the company as an important part of the Toyota Tsusho Group.

PM offers investment support

Prime Minister Tarique Rahman welcomed Toyota Tsusho's interest in expanding investment and operations in Bangladesh.

He said the government is working to ensure a stable, competitive and investment-friendly environment for both domestic and foreign investors. He also assured potential investors of policy support, infrastructure facilities and other necessary assistance.

The prime minister also highlighted opportunities in waste-to-energy and renewable energy in Bangladesh. He said the government would provide necessary support if Toyota Tsusho is interested in investing in those sectors.

The broader areas of Toyota Tsusho's global business include mobility, green infrastructure and circular economy, making the renewable-energy discussion relevant to the company's wider business portfolio.

Nationwide Toyota distribution network

The Toyota delegation also told the prime minister that plans are underway to expand Toyota Bangladesh's distribution network to all divisional cities.

The objective is to make Toyota's products, services and operations more accessible to customers outside Dhaka and other existing service locations.

Toyota's Bangladesh operation has undergone a broader restructuring in recent years. Toyota Bangladesh's official website says the company remains committed to serving customers nationwide, while its 2025 business restructuring introduced a direct operating model for vehicle delivery, genuine parts and after-sales services.

Corporate information also identifies Toyota Bangladesh Limited as a wholly owned subsidiary of Toyota Tsusho Asia Pacific and Toyota Tsusho Corporation, Japan.

HEV manufacturing targeted for 2029

The most significant industrial element of the announcement is Toyota's plan to establish a Hybrid Electric Vehicle manufacturing industry in Bangladesh.

Work is expected to begin in 2027 at an economic zone, while full-scale production is targeted for 2029.

This distinction is important for accuracy. Current reports do not establish that commercial HEV production will begin in 2027. Rather, the available information indicates that development work will start in 2027, with full-scale manufacturing planned for 2029.

Toyota Tsusho's current medium-term business plan also identifies expanding machinery demand associated with HEV plants as one of the areas supporting growth in its mobility-related business.

Focus on youth skills

Toyota also expressed interest in contributing to human-resource development in Bangladesh.

The company discussed potential technical and vocational training opportunities for young people, skills development and the creation of a workforce equipped for future industries.

A local manufacturing ecosystem could potentially create opportunities across vehicle production, components, maintenance, after-sales services and supply chains. However, no specific employment target, training capacity or investment amount was announced during the meeting, so those figures have not been inferred in this report.

The Bangladesh side included Commerce Minister Khandakar Abdul Muktadir, Prime Minister's Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Humayun Kabir, Prime Minister's Adviser Rehan Asif Asad, and Special Assistant to the Prime Minister for Overseas Employment Affairs in the Asia-Pacific Region Dr Md Shakirul Islam Khan, among other officials. Government-linked reporting also identifies Rehan Asif Asad as the prime minister's adviser for posts, telecommunications, information technology, science and technology.

From Toyota Tsusho, Shigeru Harada, CEO of the Mobility Division, Premmit Singh, President of Toyota Bangladesh Limited, and other senior executives attended the meeting.

//DBTech/MHH/SMP/ BPO//