Toyota Tsusho Corporation will launch development work in 2027 to establish hybrid electric vehicle (HEV) manufacturing at a Bangladesh economic zone, with full-scale output scheduled to begin by 2029, the country's Prime Minister's Office said on 6 October.

The Japanese trading house set the timeline during a meeting in Dhaka between Prime Minister Tarique Rahman and a delegation led by Vice Chairman Ichiro Kashitani.

What did Toyota Bangladesh commit to?

The PMO described a "with Bangladesh, for Bangladesh" development philosophy. Toyota Bangladesh will begin HEV production-site groundwork in 2027, with full-scale manufacturing targeted for 2029.

Toyota Bangladesh also said it is expanding its distribution network to all divisional-level locations to widen service access across the country.

The delegation flagged training as a parallel deliverable. Toyota Tsusho expressed interest in setting up technical and vocational programmes for Bangladeshi youth, framed as workforce preparation for future industries.

What did the prime minister offer?

Rahman welcomed the expansion and framed Bangladesh as a competitive destination for foreign capital. "The government was working to ensure a stable, competitive and investment-friendly environment for local and foreign investors," the PMO quoted him as saying.

He pledged policy support, infrastructure and other facilities for foreign investors. He also raised Bangladesh's potential in waste-to-energy and renewables and asked whether Toyota Tsusho wanted to participate in those sectors.

What do the production numbers say?

Nothing yet. The PMO release disclosed no unit-volume target, no plant capacity figure, no investment amount and no employment count. The 2027-to-2029 sequence describes a development plan, not a confirmed production schedule.

The release also did not name the economic zone under consideration. Whether the HEV programme reuses existing Toyota Bangladesh facilities or builds new capacity remains to be confirmed.

The press materials do not specify which Toyota-brand HEV models, if any, would be assembled in Bangladesh.

Who else was in the room?

Commerce Minister Khandaker Abdul Muktadir attended alongside advisers Rashed Al Mahmud Titumir (economic and planning), Humayun Kobir (foreign affairs state minister) and Rehan Asif Asad (science and technology). Md Shakirul Islam Khan, special assistant for foreign employment in the Asia-Pacific region, also joined.

For Toyota Tsusho, Mobility Division CEO Shigeru Harada was present alongside Vice Chairman Kashitani and Toyota Bangladesh Ltd President Premmit Singh.

What to watch next

The 2027 start of site-development work is the next verifiable milestone. Watch for a joint statement naming the economic zone, the model line-up and any capacity disclosure from Toyota Bangladesh or Toyota Tsusho. Any move into Bangladeshi waste-to-energy or renewables would signal a wider Japanese group footprint beyond automotive.