Dhaka:Japanese automobile giant Toyota is considering establishing a hybrid vehicle assembly plant in Bangladesh within the next one to two years. This move could be a significant step forward in the country's efforts to attract substantial foreign investment in the automobile manufacturing sector.
According to Bangladesh Sangbad Sangstha, the proposed assembly plant would expand Bangladesh's domestic automobile industry, introduce advanced automotive technology, and create opportunities for local manufacturing, subject to necessary government policy support.
Toyota plans to invest approximately US$40 million to establish two modern 3S (Sales, Service, and Spare Parts) centers in Dhaka and Chattogram as part of its initial move into the Bangladesh market. The construction of these centers is scheduled to begin in November 2026, providing integrated services such as vehicle sales, maintenance, repair, and the supply of genuine spare parts.
The establishment of the 3S centers will mark Toyota's first direct operational presence in Bangladesh, opening a new chapter in the company's engagement with the country's growing automotive market. The project could advance within one to two years, depending on the policy environment and government support.
Invest Bangladesh will facilitate Toyota's investment and provide necessary policy assistance to help establish manufacturing operations in Bangladesh. Md Abu Yousuf, Assistant Vice President of DBH Finance PLC and a Toyota car owner, welcomed the investment, saying that local assembly of hybrid vehicles could reduce import-related costs and make hybrid cars more affordable for Bangladeshi customers.
Business leaders also view Toyota's potential investment as an encouraging signal for Bangladesh's efforts to attract foreign direct investment in the automobile sector. Syed Moazzam Hossain, former FBCCI Director and Managing Director of the SMH Group, noted that the investment could create new opportunities for local entrepreneurs, automobile dealers, spare-parts suppliers, and skilled workers.
Hossain added that if Toyota starts assembling hybrid vehicles in Bangladesh and exports them, it could open up significant opportunities for the country's automobile industry. However, he emphasized the need for a competitive investment environment, consistent government policies, attractive tax and customs facilities, and the development of skilled manpower and supporting industries to achieve this potential.