Toyota Motor Europe (TME) will invest US$790 million to expand production capabilities in order to make a new battery electric vehicle (BEV) at its Toyota Motor Manufacturing Czech Republic (TMMCZ) facility. The new BEV is the first to be produced in one of Toyota’s European plants; Toyota BEVs currently manufactured in Europe at non-TME plants are: Proace City, Proace City Verso, Proace, Proace Verso, and Proace Max.
This announcement represents a significant investment as TMMCZ’s existing plant in Kolin in the Czech Republic, which will be expanded from approximately 1.6 million square feet to about 1.86 million square feet accommodate production of the new vehicle and its battery, and new paint and welding shops. Funding for the construction of the new BEV manufacturing activity will be met by new capital expenditures of approximately $790 million by Toyota which includes a Czech Government investment of up to $74 million towards a dedicated facility for battery assembly. For Toyota, this decision signals a further roll-out of its multi-pathway strategy designed to achieve its objective of carbon neutral operations in Europe by 2040.
“This new battery electric vehicle production is testament to the dedication of our employees and the vision shared with the Czech Government to advance sustainable mobility and innovation. We fully appreciate this investment, the historical support and recognition of the Czech Republic, and our contribution to Czech society will continue as a ‘Best in Town’ company’. This advanced technology project will enhance our presence in the European market and contribute alongside our other solutions towards more efficient transportation,” said Yoshihiro Nakata, President & CEO, Toyota Motor Europe.
Toyota will invest $790 million in a BEV manufacturing facility in Kolin, Czech Republic. (Photo: Toyota Motor Manufacturing Czech)“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 investment will not only expand the current production in Kolín, it also represents an important step in the direction of a higher technological level and keeping car manufacturing in our country. The automotive industry makes up around 10% of our GDP, and if we want to keep it, we must systematically modernise it. It is exactly such projects that are crucial for the future of the Czech automotive industry – they enhance its competitiveness and support innovation while creating new qualified jobs. In this case, 245 new job opportunities will be created in the region. Foreign investments are the result of our long-term effort and we will work to ensure that the Czech Republic remains a strong country that can succeed in European and worldwide competition,” said Petr Fiala, Prime Minister of the Czech Republic.
“This great success is the result of a series of negotiations in both Europe and Japan, which my team and I had the privilege to work on. I would like to sincerely thank our partners for our constructive cooperation throughout the process. Once again, it turns out that thanks to a stable and predictable business environment, strong infrastructure, and a skilled workforce, Czech Republic is a natural partner for global technology leaders. Toyota’s investment is crucial for the future of the Czech Republic automotive industry, as well as for transitioning our economy to higher added value, as defined in our economic strategy. This investment makes us also an important part of the transition to clean mobility. The government supported the investment with $74 million, with the estimated benefits for the state reaching $290 million,” said Lukáš Vlček, Minister of Industry and Trade, Czech Republic.
TMMCZ has a rich history in the Czech Republic, with a manufacturing presence going back over two decades and producing over 4.5 million vehicles across that period. Toyota first started producing Aygo in 2002 when the plant was a joint-venture. Toyota acquired full ownership in 2021 and has continued to expand its activities so that TMMCZ is one of the largest employers in the Central Bohemia region, with a workforce of around 3,200 members and 65% of its supply parts sourced in the Czech Republic.