Establishment of a Vehicle Assembly Business Company in Laos

Toyota Tsusho Co., Ltd. (hereinafter: Toyota Tsusho) has established a new company, Toyota Tsusho Manufacturing Laos Co., Ltd. (hereinafter: TTML), to conduct vehicle assembly (KD*) business in the Lao People's Democratic Republic (hereinafter: Laos). TTML will serve as a production base for assembling and supplying vehicles for the Laotian domestic market, with phased investment in facilities and human resource development, and is scheduled to commence production in April 2028. *KD: Abbreviation for Knock Down. This is a method where a vehicle is shipped overseas in parts rather than as a finished product, and assembled locally. 1. Background of Establishment Since taking over sales operations in Laos from Toyota Motor Corporation in September 2018 and commencing business as an authorized Toyota dealer, Toyota Tsusho has been working to expand its business foundation in the country by strengthening its sales and service network. In recent years, the new vehicle market in Laos has been expanding annually with population growth, and further demand growth is expected in the future, driven by economic growth and motorization. On the other hand, the conventional supply system, which relies on importing finished vehicles, faces challenges in terms of price competitiveness and stable supply, necessitating the establishment of a localized production system that meets local needs. Based on this market environment, Toyota Tsusho aims to expand sales and further strengthen its business foundation in the Laotian market through its local vehicle assembly business. 2. Business Content and Future Development TTML will leverage Toyota Tsusho's expertise in vehicle assembly operations cultivated in various regions such as Asia, the Middle East, and Africa to establish a production system where parts are imported and assembled locally. With an annual production target of over 5,000 units, the company will focus on core models such as the Hilux (pickup) and Fortuner (SUV) to ensure both price competitiveness and stable supply in the local market. In the future, it is planned to create approximately 150 local jobs. Furthermore, by utilizing Toyota Tsusho's strengths in procurement, logistics, production management, sales, and after-sales service, the company aims to build an efficient and stable value chain and expand its market share through integrated operations from parts procurement to assembly, sales, and service. Toyota Tsusho has positioned the strengthening and expansion of its mobility business as a key initiative in its medium-term management plan, and this project is one of the efforts towards its realization. Through this business, Toyota Tsusho will contribute to the development of the mobility industry in Laos, as well as to the sustainable development of the country's economy and society by promoting job creation and human resource development. Toyota Hilux Toyota Fortuner Company Name Toyota Tsusho Manufacturing Laos Co., Ltd. Location Lot 142-144, 158-160, KM 22, Nonthong Village, Xaythany District, Vientiane Capital, Lao PDR Capital 15.7 million USD (approx. 2.46 billion JPY) Representative Akihiro Nishihara, President Shareholding Ratio Toyota Tsusho 81%, Toyota Laos 10%, SOKXAI G 9% Business Description Vehicle assembly business Establishment June 2026 Scheduled Production Start April 2028 Scheduled Production Models Toyota Hilux, Toyota Fortuner Annual Production Volume 5,000 units