Toyota Motor Corporation has announced plans to manufacture its first fully-electric vehicle in Europe at its factory in Kolin, Czech Republic, alongside the construction of a new battery assembly facility. The Japanese automaker disclosed on Wednesday that it will invest about €680 million ($796 million) in the expansion project, with the Czech government contributing up to €64 million towards the dedicated battery plant.
Czech Prime Minister Petr Fiala welcomed the investment, describing it as vital to sustaining car manufacturing in the country, where the auto industry accounts for around 10 percent of gross domestic product. Toyota currently produces the Aygo X and Yaris Hybrid at the Kolin facility, which has an annual production capacity of about 220,000 vehicles. Officials said the new investment will secure jobs and strengthen the Czech Republic’s position as a key automotive hub in Europe.
While Toyota did not disclose details of the electric model or production timeline, the move aligns with its broader plan to introduce nine fully-electric vehicles in Europe under the Toyota and Lexus brands between 2025 and 2026. The world’s largest automaker by sales has so far pursued a cautious strategy on EVs compared to its rivals, relying heavily on its hybrid line-up, which has seen strong demand globally, particularly in the United States.
Industry analysts say Toyota’s gradual entry into the European EV market comes at a time when global demand for electric vehicles has slowed, giving the company an edge with its hybrid offerings. The Czech project is expected to position Toyota more firmly i