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Japanese automobile giant Toyota is considering setting up a hybrid vehicle assembly plant in Bangladesh within the next one to two years, potentially marking a major breakthrough in the country’s efforts to attract foreign investment in automobile manufacturing.
The proposed facility could help expand the domestic automobile industry, introduce advanced automotive technologies and create employment opportunities, subject to necessary policy support from the government.
As an initial step towards entering the Bangladesh market, Toyota plans to invest around US$40 million in establishing two modern 3S (Sales, Service and Spare Parts) centres in Dhaka and Chattogram.
According to the Invest Bangladesh Authority, construction of the two centres is scheduled to begin in November 2026.
The facilities will offer integrated services, including vehicle sales, maintenance, repairs and supplies of genuine spare parts.
The centres will mark Toyota’s first direct operational presence in Bangladesh, opening a new chapter in the Japanese automaker’s engagement with the country’s growing automobile market.
The proposed assembly project could move forward within one to two years, depending on the policy environment and government support.
Invest Bangladesh will continue to facilitate Toyota’s investment and provide necessary policy assistance to help the company establish manufacturing operations in the country.
Talking to BSS, Md Abu Yousuf, assistant vice-president of DBH Finance PLC and a Toyota car owner, welcomed the proposed investment, saying local assembly of hybrid vehicles could make them more affordable for Bangladeshi customers.
“If Toyota starts assembling hybrid vehicles locally, it could reduce import-related costs and make hybrid cars more affordable. It would also make it easier for customers to access genuine spare parts and professional after-sales services,” he said.
He also expressed hope that the proposed 3S centres would strengthen customer confidence by ensuring better maintenance facilities and the availability of genuine spare parts.
Business leaders have also welcomed Toyota’s potential investment, describing it as an encouraging signal for Bangladesh’s efforts to attract foreign direct investment in the automobile manufacturing sector.
Syed Moazzam Hossain, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and managing director of SMH Group, said the proposed investment could create opportunities for local entrepreneurs, automobile dealers, spare-parts suppliers and skilled workers.
“Toyota’s involvement could help develop a modern automotive industry in Bangladesh through technology transfer, skills development and the creation of employment opportunities. It could also encourage other international automobile manufacturers to consider investing in the country,” he said.
He said Bangladesh could emerge as a regional automobile manufacturing hub if Toyota eventually assembled hybrid vehicles locally for export to international markets.
However, he stressed the need for a competitive investment environment, consistent government policies, attractive tax and customs facilities, skilled manpower and the development of supporting industries.
Exporting Toyota vehicles from Bangladesh could generate foreign currency, create jobs, develop local industries and strengthen the country’s position in the global automotive supply chain, he added.