Toyota has announced plans to produce its first fully electric vehicle in Europe at its Kolín plant in the Czech Republic. The Japanese carmaker will commit around €680 million (US$796 million) to expand the facility, which will also gain a new battery assembly unit. The Czech government is expected to contribute up to €64 million towards the dedicated battery project.

Although Toyota has not yet revealed the model or production start date, the decision is seen as a strategic step for both the company and the Czech economy, where the automotive sector accounts for roughly 10% of GDP. Prime Minister Petr Fiala described the move as vital for maintaining car manufacturing within the country.

Toyota, currently the world’s largest carmaker by sales, has taken a more cautious approach to fully electric vehicles compared to some of its rivals. That strategy has proven advantageous recently, as global EV demand has shown signs of slowing, while the company’s hybrid line-up continues to grow in popularity, particularly in the United States.

The automaker confirmed earlier this year that it will roll out nine new fully electric models in Europe across its Toyota and Lexus brands during 2025 and 2026. At present, the Czech plant produces the Aygo X and Yaris Hybrid, with an annual output capacity of around 220,000 vehicles.

Source: https://www.reuters.com/
Author: CzechTrade Australia