Record Toyota Investment in the Czech Republic – EV and Battery Production
Toyota to invest €680 million (approx. PLN 2.9 billion) in expanding its plant in Kolín, where production of electric vehicles and traction batteries will soon begin. This is Toyota’s first project of this kind in Europe and at the same time a symbolic turn towards electromobility.
Kolín as Toyota’s European Transformation Hub
The expansion of Toyota Motor Manufacturing Czech Republic (TMMCZ) will increase the plant’s size to over 173,000 m². Currently, the factory produces the Aygo X and Yaris Hybrid models, with an annual capacity of around 220,000 vehicles. Once modernisation is complete, Kolín will become a key point in Toyota’s European strategy.
The significance of the project is underlined by the involvement of the Czech government, which has pledged €64 million in support. The automotive industry accounts for nearly 10% of Czech GDP, making the investment not only strategically but also economically important. Toyota has also announced plans to increase employment at the site, although details on the number of new jobs have not yet been revealed.
“I am pleased that the Czech Republic has secured such an important investor as Toyota, even though other countries were competing for this investment. This project is of enormous importance for the future of the Czech automotive industry – it boosts competitiveness, supports innovation, and creates new jobs. A total of 245 positions will be created in the Kolín region,” said Prime Minister Petr Fiala.
Minister of Industry and Trade Lukáš Vlček added:
“This success is the result of negotiations in Europe and Japan. Thanks to a stable business environment, infrastructure, and skilled workforce, the Czech Republic is a natural partner for global technology leaders. Toyota brings an investment that is crucial for the economic transformation and the development of clean mobility. The estimated benefits for the state will amount to around €250 million.”
Toyota’s First European EVs
The Kolín plant will be the first in Europe to produce fully electric Toyota models powered by traction batteries. The company plans to introduce 14 new BEV (Battery Electric Vehicle) models to the European market by the end of 2026.
The choice of location is no coincidence – a large part of the components will come from Czech suppliers, which will help expand the regional supply chain and further strengthen the economy.
A Shift in the Japanese Giant’s Strategy
For years, Toyota consistently developed hybrid drivetrains and hydrogen technologies, leaving electric cars somewhat in the background. Launching production in Kolín signals a change of course – the manufacturer can no longer wait while competitors such as Volkswagen, Hyundai, and Chinese brands like BYD and Nio steadily increase their market shares in Europe’s EV sector.
Growing EV Market
Toyota’s decision reflects a broader trend. After a difficult 2024, when electric car sales in Europe declined, the first half of 2025 saw a rebound – the number of BEV registrations in the European Union rose by more than 20% year-on-year (ACEA data).
Source: toyota.eu