Toyota is considering setting up a hybrid vehicle assembly plant in Bangladesh within the next one to two years, as part of the country's efforts to attract foreign investment into its automobile manufacturing sector.

The plant could expand the domestic automobile industry, facilitate the introduction of automotive technology and create local manufacturing opportunities, subject to government policy support.

As an initial step towards entering the Bangladesh market, Toyota plans to invest around US$ 40 million in two 3S (Sales, Service and Spare Parts) centres in Dhaka and Chattogram. According to the Invest Bangladesh Authority, construction is scheduled to begin in November 2026. The facilities will provide vehicle sales, maintenance, repair services and genuine spare parts, marking Toyota's first direct operational presence in the country.

The proposed assembly project could proceed within the next one to two years, depending on the policy environment and government support. Invest Bangladesh will facilitate the investment and provide policy assistance for establishing manufacturing operations.

Speaking to BSS, Md Abu Yousuf, Assistant Vice President of DBH Finance and a Toyota car owner, said local assembly could make hybrid vehicles more accessible to 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 further added that the proposed 3S centres could improve access to vehicle maintenance facilities and genuine spare parts.

Syed Moazzam Hossain, former FBCCI Director and Managing Director of the SMH Group, said the investment could create opportunities for local entrepreneurs, automobile dealers, spare-parts suppliers and skilled workers.

"Toyota's involvement could contribute to the development of Bangladesh's automotive industry through technology transfer, skills development and employment generation. It could also encourage other international automobile manufacturers to consider investing in the country," he said.

He further added that assembling hybrid vehicles in Bangladesh for export could create further opportunities for the country's automobile industry.

"Bangladesh could develop into a regional automobile manufacturing hub if Toyota considers exporting locally-assembled vehicles to other countries. However, this would require a competitive investment environment, consistent government policies, favourable tax and customs provisions, skilled manpower and supporting industries," he said.

He further stated that exporting Toyota vehicles could generate foreign exchange earnings, create employment opportunities, support local industries and increase Bangladesh's participation in the global automotive supply chain.