Automotive giant Toyota has confirmed that it will produce its first fully electric vehicle in Europe in the Czech Republic. With this decision, the company will make a major investment of €680 million at its Kolin plant in the Czech Republic. This is seen as a significant milestone in Toyota’s European production strategy.

Toyota is betting big on the electric vehicle sector

Rumors that surfaced about a month ago have been confirmed by Toyota’s official announcement. The Japanese manufacturer is preparing to produce its new electric model, designed for the European market, at its facility in the Czech Republic. This investment will also expand the factory’s production capacity and space. The facility will increase from 152,000 square meters to 173,000 square meters. Additionally, new paint and welding shops will be established for the production of new vehicles and batteries.

The Kolin plant currently produces approximately 220,000 units of the Aygo X and Yaris Hybrid models annually. The addition of electric vehicle production will further increase the factory’s versatile production capacity. This new investment also directly contributes to employment in the region.

Toyota’s production presence in the Czech Republic stretches back over 20 years. The facility, which began with Aygo production in 2002 and transitioned entirely to Toyota ownership in 2021, currently employs approximately 3,200 people.

This new investment is considered a strategic step for Toyota as it progresses toward its goal of achieving carbon neutrality in its European operations by 2040. The company invested €1.32 billion in its Czech plant from 2002 to 2024.

Now, a further €680 million is being added to this figure. This decisive move is seen as a step that will strengthen the brand’s competitive position in the global electric vehicle market.