Toyota Motor Europe (TME) is set to commence the production of its first battery electric vehicle (BEV) in Europe, at its Toyota Motor Manufacturing Czech Republic (TMMCZ) site. The move signifies a considerable investment in the Czech automotive industry, with Toyota earmarking around 680 million euros for new capital expenditures, which includes a contribution of up to 64 million euros from the Czech Government for the construction of a specialized battery assembly facility.

As a result of this investment, the TMMCZ facility in Kolín will undergo an expansion from its current size to accommodate the new BEV production lines and associated facilities. This initiative is a key component of Toyota's wider goal to reach carbon neutrality in its European operations by 2040.

This expansion is expected to generate more direct jobs and have a positive impact on the local supply chain, with most of the components for the BEV expected to be locally sourced. TMMCZ's presence in the Czech Republic spans over 20 years, with the plant being a significant local employer, housing a workforce of about 3,200 people. The plant has been instrumental in the production of over 4.5 million vehicles since its inception, the company said.

In 2024, TMMCZ also became the site of Toyota's inaugural logistics mega hub in Europe to distribute vehicles to Toyota and Lexus dealerships in Poland, Germany, Hungary, Austria, the Czech Republic, and Slovakia. Toyota invested 1 069 million euros in TMMCZ’s commissioning and production from 2002 to 2005, and a further 251 million euros between 2020 and 2024 in plant capacity expansion to accommodate Yaris and Aygo X TNGA production, among other upgrades.

Delivered by CzechTrade team Canada.
Source: Global Data.