Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it has established Toyota Tsusho Manufacturing Laos Co., Ltd. ("TTML"), a new company engaging in the vehicle assembly (KD* production) business in the Lao People's Democratic Republic ("Laos").
TTML will serve as a production base for assembling and supplying vehicles for the domestic market in Laos. It will make phased capital investments and develop human resources, with production scheduled to begin in April 2028.
*KD: Abbreviation for Knock Down, a method in which vehicles are shipped overseas as components rather than finished vehicles and assembled locally.

1. Background
Toyota Tsusho began operations as an authorized Toyota distributor in Laos in September 2018, when Toyota Motor Corporation transferred its sales operations in Laos to Toyota Tsusho. Since then, Toyota Tsusho has worked to expand its business foundation in the country by strengthening its sales and service structure.
Recently, Laos' new vehicle market has expanded each year in line with population growth, and demand is expected to grow further as the economy expands and motorization advances. At the same time, the conventional supply structure based on imports of finished vehicles has faced challenges in terms of price competitiveness and stable supply, creating a need to build a local production for local consumption structure that meets local needs. In light of this market environment, Toyota Tsusho will work to expand sales and further strengthen its business foundation in the Laos market through local vehicle assembly operations.

2. Business Details and Future Outlook
TTML will use the vehicle assembly business expertise Toyota Tsusho has developed in regions including Asia, the Middle East, and Africa to build a production structure that imports components and assembles them locally. The company expects to produce more than 5,000 vehicles annually, focusing on core models such as the HILUX pickup truck and FORTUNER SUV. It will seek to ensure both price competitiveness in the local market and stable supply, while also planning to create approximately 150 local jobs in the future.
Toyota Tsusho will also leverage its strengths in procurement, logistics, production management, sales, and after-sales service to operate an integrated system from parts procurement to assembly, sales, and service, thereby building an efficient and stable value chain and expanding its market share.

In its Mid-term Business Plan, Toyota Tsusho has identified strengthening and expanding the mobility domain as a priority, and this business is one initiative toward achieving that goal. Through this business, Toyota Tsusho will contribute to developing the mobility industry in Laos as well as to job creation and human resource development, thereby supporting the country's sustainable economic and social development.