Toyota to produce electric cars in Kolín, Czechia, investing CZK 16.66 billion in expansion

Toyota will produce battery-electric vehicles in the Czech Republic. It will build a new production line at its plant in Kolín, an investment totaling around 680 million euros (16.66 billion Kč). This will be the first site in Europe where Toyota will manufacture electric cars. The state will contribute up to 64 million euros (1.57 billion Kč) in the form of an investment incentive. The production expansion will create 245 new jobs. The project is expected to bring the state an economic benefit of around six billion crowns. Toyota currently employs around 3,200 people in Kolín. Prime Minister Petr Fiala (ODS) and Yoshihiro Nakata, president of Toyota Motor Europe, announced the plans at a press conference today.

The Kolín plant, TMMCZ, will expand by more than 21.000 square meters to 172.202 square meters once construction is complete. The new line will produce new vehicles, including their batteries, and will also include a new paint shop and welding shop. Toyota has not yet determined how many electric cars the new line will produce or which models, saying this will depend on developments in the automotive market and demand. Toyota currently produces around 220.000 cars a year here.

The Czech investment incentive will go toward a dedicated battery assembly plant. Fiala said the Czech Republic had prevailed over other countries that were also vying for the investment. “This investment will not only expand existing production in Kolín, but also represents an important step toward a higher level of technology and the long-term retention of car manufacturing in our country. The automotive industry accounts for around ten percent of our GDP, and if we want to retain it, we must modernize it systematically,” the prime minister said.

Industry and Trade Minister Lukáš Vlček (STAN) said the investment was the result of a series of negotiations. “We prevailed in tough competition from other potential investors in Europe and Asia, once again showing that thanks to a stable and predictable business environment, good infrastructure and qualified workers, the Czech Republic is the best place to do business,” Vlček said. He said the investment should bring around six billion crowns to the Czech economy in the future.

The new battery-electric vehicle will be the first of its kind to be produced at one of Toyota’s European plants, said Martin Peleška, CEO of Toyota and Lexus Czech Republic. He said it was a significant milestone for both the automaker and the Czech Republic.

Toyota is one of three carmakers in the Czech Republic, alongside Škoda Auto and Hyundai. The Kolín plant was established in 2002 as a joint venture between Toyota, Peugeot and Citroën, known as TPCA. Car production began in 2005. Toyota took over the entire plant in 2021 and began expanding it. The Japanese automaker currently produces the Yaris and Aygo X models in Kolín. Last year, it increased their output to 225.058 cars.