Toyota to Invest About €680 Million to Expand Czech Factory

According to Reuters, on September 3, Japanese automaker Toyota Motor Corporation announced that it will invest in building a new battery assembly facility at its plant in the Czech Republic (hereinafter referred to as "the Czech Republic"). Reportedly, the company will invest approximately 680 million euros (about 796 million US dollars) to expand its plant located in Kolin, Czech Republic. Toyota Motor Corporation also stated that the Czech government will invest up to 64 million euros in this dedicated battery facility.

Aygo X; Image source: Toyota Motor Corporation

At the same time, Toyota Motor Corporation announced that it will produce an electric vehicle model at its Czech plant, which will be the company’s first all-electric vehicle produced in Europe. However, the company has not yet disclosed specific details or the production timeline for this model.

Czech Prime Minister Petr Fiala stated in a declaration that the automotive industry accounts for about 10% of the country's GDP, and Toyota Motor Corporation's decision to produce electric vehicles at the Kolin plant is a key step to ensure the survival of the country's automobile manufacturing industry.

Currently, Toyota's Czech factory mainly produces the Aygo X and Yaris Hybrid models, with an annual production capacity of approximately 220,000 vehicles.

As the world's highest-selling car manufacturer, Toyota Motor Corporation has adopted a more cautious strategic approach in the electric vehicle sector compared to its traditional competitors. In the context of a slowdown in global electric vehicle demand over the past year, this cautious strategy has provided positive support for Toyota.

Toyota Motor Corporation has also benefited from the market demand brought by its continuously expanding hybrid vehicle lineup, with its sales performance being particularly outstanding in its largest market, the United States.

Earlier this year, Toyota Motor Corporation announced that between 2025 and 2026, its brands Toyota and its luxury brand Lexus will launch a total of nine pure electric vehicle models in the European market.

In April this year, there were reports that Toyota Motor plans to increase the number of its self-developed electric vehicle models to 15 (including some models from its luxury brand Lexus) by 2027 and achieve an annual production target of 1 million units. It is reported that Toyota currently has 5 self-developed electric vehicle models, and they are only produced in the Japanese and Chinese markets.