Toyota brings production closer to the buyer: Hilux and Fortuner to be assembled in Laos

Toyota Tsusho establishes TTML in Vientiane to produce Hilux and Fortuner from 2028. A $15.7M project with 5,000-vehicle capacity and 150 jobs.

Author: Дмитрий Новиков

02:24 10-06-2026

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Toyota Tsusho is launching its own assembly of Toyota vehicles for the domestic market in the Lao People’s Democratic Republic. The new company, Toyota Tsusho Manufacturing Laos, or TTML, will begin production in April 2028 and focus on the Hilux and Fortuner.

This is knock-down (KD) assembly: cars will arrive not as finished vehicles but as kits of components, put together locally. The format is meant to secure stable supply and a reasonable price tag. In Laos’ small but growing market, importing finished vehicles has become a weak spot — logistics costs more, competition is harder, and demand is steadily rising as motorisation spreads across the country.

The project’s capital stands at $15.7 million (about 2.46 billion yen). Shares are split between Toyota Tsusho (81%), Toyota Laos (10%) and local partner Sokxay Group (9%). The site will be located in Vientiane Capital, in Xaythany District, at kilometre 22 of the highway. Planned capacity will exceed 5,000 vehicles per year, and the project is expected to create around 150 local jobs.

Toyota Tsusho has been operating in Laos since September 2018, when Toyota Motor transferred its in-country sales to the trader, and it has been building out the dealer and service network ever since. Production now joins sales, giving the company control of the chain from parts supply to vehicle servicing.

The model choice makes sense. The Hilux is a working pickup for roads, construction sites, rural areas and small businesses. The Fortuner is a body-on-frame SUV for the same conditions but with a heavier focus on family use and comfort. In Southeast Asia, buyers pick these vehicles not just for the Toyota badge but for their durability and the simple logic of ownership.

Laos will not become a new auto giant on the back of 5,000 cars a year. But for Toyota, this is a measured way to put down roots in a market that is still growing, where the buyer is especially sensitive to price, reliability and service availability.