€680M
245
10%
€250M
Historic Investment Secures Czech Republic's Electric Future
In a landmark ceremony at the Czech Government Office in early September 2025, Toyota Motor Europe announced its largest-ever investment in the Czech Republic—a €680 million commitment that will establish the country as home to Toyota's first fully electric vehicle production facility in Europe.
Toyota's decision reflects confidence in the Czech Republic's stable business environment, strong infrastructure, and skilled workforce, making it a natural partner for global technology leaders transitioning to sustainable mobility solutions.
Transforming the Kolín Manufacturing Hub
Strategic Importance for European Electric Transition
This Kolín investment supports Toyota's commitment to launch six new battery electric vehicles across Europe by 2026, positioning the Czech facility as a cornerstone of the company's European electrification strategy.
The Kolín plant represents one of Toyota's eight fully-owned European manufacturing centers, with 77% of Toyota vehicles sold in Europe also produced in Europe.
The facility includes Europe's largest Toyota logistics mega hub, capable of processing 350,000 vehicles annually across six Central European markets.
The investment directly supports Toyota's goal of achieving carbon neutrality in Europe by 2040 through expanded electric vehicle production.
65% of supply parts are sourced locally in the Czech Republic, strengthening the domestic automotive supply chain ecosystem.
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 automotive industry makes up around 10% of our GDP, and if we want to keep it, we must systematically modernise it.
Economic Impact and Government Support
Financial Commitment Breakdown
Toyota Investment: €680 million for plant expansion, new equipment, and production line setup for electric vehicle manufacturing.
Government Support: The Czech government is contributing €64 million specifically for the battery facility, demonstrating strong public-private partnership commitment.
Economic Returns: Government estimates project state benefits reaching €250 million (CZK 6 billion) through increased tax revenue, employment, and supply chain development.
Regional Development Impact
245 new qualified positions will be created, adding to Toyota's position as the largest employer in the Central Bohemia region.
Toyota has invested over 4 billion Czech crowns in regional development since establishing operations, creating lasting economic benefits.
The investment reinforces partnerships with European suppliers and expands local automotive expertise in electric vehicle technologies.
The Kolín plant ranks among the Czech Republic's largest exporters, with electric vehicles expected to further boost export revenues.
Toyota's European Electric Vehicle Strategy
Toyota has been more cautious in its approach to EVs than traditional rivals, which has helped it over the last year as global EV demand has slowed. This measured strategy now positions the company to capitalize on market recovery with advanced electric models.
Timeline for European EV Expansion
Second Half of 2025: Launch of C-HR+ and updated bZ4X in select European markets, establishing Toyota's electric SUV foundation.
2026 Full Rollout: Complete European market availability of six Toyota battery electric vehicles, including the Czech-manufactured model.
Market Projection: Toyota expects electric vehicles to represent more than 20% of European sales, exceeding 250,000 annual units by 2026.
Competitive Positioning in European EV Market
Toyota's electrified vehicle mix already reaches 71% in Europe, providing a strong foundation for transitioning customers to fully electric models while maintaining hybrid options for diverse customer needs.
Looking Ahead: The Future of Czech Automotive Manufacturing
This investment in autumn 2025 represents more than just another manufacturing announcement—it signals the Czech Republic's transformation into a central hub for next-generation automotive technology. With environmental regulations tightening across Europe, electric vehicles account for about 15 percent of new car sales, creating significant growth opportunities.
The project represents an important step toward higher technological level manufacturing and keeping car production competitive in the Czech Republic, ensuring the nation remains a key player in Europe's automotive future.
What are your thoughts on Toyota's strategic investment in Czech electric vehicle production? Share your perspective in the comments below, and don't forget to follow our coverage of European EV manufacturing developments for the latest industry insights.
