Toyota announces a new battery electric vehicle to be produced in Europe

• Toyota Motor Europe to start production of a new battery electric vehicle at its plant in Kolin, Czech Republic
• Toyota Motor Manufacturing Czech to expand plant and build a new battery assembly facility
• Significant new investment in battery electric vehicle provides a further boost to the region, following Toyota Aygo X and Yaris hybrid vehicle production

In a ceremony at the Office of Government of the Czech Republic today, Petr Fiala, the Czech Prime Minister, Lukáš Vlček, the Minister of Industry and Trade with Yoshihiro Nakata, President of Toyota Motor Europe (TME) announced the production of a new battery electric vehicle (BEV) at Toyota Motor Manufacturing Czech Republic (TMMCZ). The new BEV, the first to be produced in one of Toyota’s European plants₍₁₎, is a significant milestone for both the company and the Czech Republic.

This announcement represents a significant investment as TMMCZ’s plant in Kolin will be expanded from 152,000 to 173,000 squaremetres to accommodate production of the new vehicle and its battery, and new paint and welding shops. Funding for the construction of the new BEV manufacturing activity will be met by new capital expenditures of approximately €680 million (approx. £591 million) by Toyota which includes a Czech Government investment of up to €64 million (approx. £55.6 million) towards a dedicated facility for battery assembly. For Toyota, this decision signals a further roll-out of its multi-pathway strategy designed to achieve its objective of carbon neutral operations in Europe by 2040.

Commenting at the event earlier today, Petr Fiala, Prime Minister of the Czech Republic, said: “I am very glad that the Czech Republic managed to secure such a significant foreign investor as Toyota, even though other countries were also interested in this investment in electric car production. The investment will not only expand the current production in Kolín, it also represents an important step in the direction of a higher technological level and keeping car manufacturing in our country. The automotive industry makes up around 10 per cent of our GDP, and if we want to keep it, we must systematically modernise it. It is exactly such projects that are crucial for the future of the Czech automotive industry – they enhance its competitiveness and support innovation while creating new qualified jobs. In this case, 245 new job opportunities will be created in the region. Foreign investments are the result of our long-term effort and we will work to ensure that the Czech Republic remains a strong country that can succeed in European and worldwide competition. “

Lukáš Vlček, Minister of Industry and Trade, Czech Republic, said: “This great success is the result of a series of negotiations in both Europe and Japan, which my team and I had the privilege to work on. I would like to sincerely thank our partners for our constructive cooperation throughout the process. Once again, it turns out that thanks to a stable and predictable business environment, strong infrastructure, and a skilled workforce, Czech Republic is a natural partner for global technology leaders. Toyota’s investment is crucial for the future of the Czech Republic automotive industry, as well as for transitioning our economy to higher added value, as defined in our economic strategy. This investment makes us also an important part of the transition to clean mobility. The government supported the investment with €64 million, with the estimated benefits for the state reaching €250 million.”

Yoshihiro Nakata, President and CEO, Toyota Motor Europe,said: “This new battery electric vehicle production is testament to the dedication of our employees and the vision shared with the Czech Government to advance sustainable mobility and innovation. We fully appreciate this investment, the historical support and recognition of the Czech Republic and our contribution to Czech society will continue as a ‘Best in Town’ company. This advanced technology project will enhance our presence in the European market and contribute alongside our other solutions towards more efficient transportation.”

Toyota currently produces Aygo X⁽²⁾ and Yaris Hybrid models at TMMCZ at a capacity of approximately 220,000 vehicles per year. The introduction of BEV production increases the potential of the plant capacity with multi-pathway production and will lead to incremental direct employment with similar benefits for the supply chain, as the majority of parts volume will be sourced in the Czech Republic.

TMMCZ has a rich history, with a manufacturing presence going back over two decades and production of more than 4.5 million vehicles during that period. Toyota started producing Aygo in 2002 when the plant was a joint venture. Toyota acquired full ownership in 2021 and has continued to expand its activities so that TMMCZ is now one of the largest employers in the Central Bohemia region, with a workforce of around 3,200 members and 65 per cent of its supply parts being sourced in the Czech Republic. TMMCZ is also the location of the Toyota’s first logistics European mega hub established in 2024 to supply vehicles to Toyota and Lexus dealerships in Germany, Austria, Poland, Slovakia, Hungary and the Czech Republic across six Central European markets.

Historic Toyota investments in TMMCZ

2002-2005: start of new plant and production €1,069 million (approx. £930 million)

2020-2024: plant capacity extension for Yaris and Aygo X TNGA production, other investments €251 million (approx. £218 million)

Total 2002-2024: €1,320 million (approx. £1,147 million)

(1) Toyota BEVs currently manufactured in Europe at non-TME plants: Proace City, Proace City Verso, Proace, Proace Verso, Proace Max

(2) Aygo X to be 100% hybrid from November 2025.

ENDS