Japanese automaker Toyota announced the production of a new battery electric vehicle at Toyota Motor Manufacturing Czech Republic (TMMCZ). The new BEV, the first to be produced in one of Toyota’s European plants, 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 square metres 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 by Toyota which includes a Czech Government investment of up to €64 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.
Toyota currently produces Aygo X and Yaris Hybrid at TMMCZ at a capacity of approximately 220,000 vehicles per year. The introduction of BEV production increases potential of the plant capacity of 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 in the Czech Republic, with a manufacturing presence going back over two decades and producing over 4.5 million vehicles across that period.
Toyota first 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 one of the largest employers in the Central Bohemia region, with a workforce of around 3,200 members and 65% of its supply parts 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.
“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 into 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% 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.”
Petr Fiala, Prime Minister of the Czech Republic
“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.”
Lukáš Vlček, Minister of Industry and Trade, Czech Republic
“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.”
Yoshihiro Nakata, President & CEO, Toyota Motor Europe
