Toyota (NYSE:TM) will start building electric vehicles in Europe at a new Czech plant by 2028.
It plans to churn out about 100K EVs a year at its Czech subsidiary, including a new electric SUV.
The automaker wants to launch 14 battery?electric models across Europe by 2026 from a revamped C?HR+ SUV to an updated bZ4Xand hit carbon neutrality in the region by 2035. Right now, EVs account for under 2% of Toyota’s global sales, so local assembly is a big shift in strategy.
Through June, EU registrations for battery?electric cars topped 869,271 units, or 15.6% of the market. Germany led with a 35.1% surge, Belgium was up 19.5% and the Netherlands rose 6.1%, while France dipped 6.4%.
Making cars in Europe could help Toyota cut logistics costs, sidestep import duties and respond faster as legacy brands and startups ramp up EV offerings.
European?built EVs position Toyota to capture market share in the continent’s fastest?growing segment and protect margins.
Investors will look to Toyota’s roll?out of 14 EV models by 2026 and the first Czech?built units in 2028 for clues on capital spending and profit impact.
This article first appeared on GuruFocus.