Toyota Launches First Industrial Project in Iraq

Prime Minister Mohammed  Al-Sudani launched the Toyota Iraq Industrial, Storage, and Service Investment Project in Baghdad, marking what is being presented as the start of car manufacturing in Iraq.

The cornerstone ceremony was held under the patronage of the Prime Minister and the National Investment Commission, with the participation of Japan’s Ambassador to Iraq, His Excellency Akira Endo, Sardar Al-Bebany, President of Toyota Iraq and Chairman of Sardar Group, and Tadashi Tanimoto, Chief Executive Officer of Toyota Iraq.

The project covers 225,000 square metres and will be developed in two phases with an investment of 30 billion IQD. It will function as a centre for storage, servicing, and spare parts, while also transferring vehicle assembly and manufacturing technologies to Iraq over time.

For Iraqi Toyota owners, the project will improve access to genuine spare parts, maintenance, and after-sales services. It will also create job opportunities for young people and provide training in automotive skills, laying the groundwork for local car assembly and production.

Designed to meet international environmental standards, the facility is aligned with Iraq’s sustainable development policies and aims to reduce carbon emissions. The initiative ends Iraq’s heavy reliance on neighbouring markets for vehicles and spare parts, lowering costs for consumers and retaining expertise within the country. It is also seen as a step linked to the wider Development Road project, which seeks to modernise infrastructure and industry.

The government has moved to amend the Commercial Agencies Law to match the requirements of international companies, part of a broader effort to strengthen the private sector and attract foreign investment. Al-Sudani confirmed that the amendments are designed to safeguard the rights of reputable global firms and reaffirmed that all state institutions are committed to removing bureaucratic obstacles and creating the right environment for investment and growth in Iraq.

Source: Iraqi Prime Minister media office