Toyota to Build First Fully-Electric Car in Europe at Kolín Plant, Czech Republic

Toyota has announced plans to build a battery-electric vehicle (BEV) model at its Kolínplant in the Czech Republic. According to Reuters, this will be Toyota’s first fully-electric car made in Europe, marking a significant milestone for the automaker and the Czech Republic.

Toyota’s 680 Million euros Investment in Battery

The Japanese automaker said it will invest in a battery assembly facility in the Czech Republic Kolínfactory. Although the company did not reveal details of its BEV model or production timelines, the giant automaker said it will invest about €680 million in the Kolín plant. This investment includes up to €64 million from the Czech Government directed to the dedicated battery assembly facility.

“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 €64 million, with the estimated benefits for the state reaching €250 million,” Minister of Industry and Trade in the Czech Republic Lukáš Vlček said.

Toyota plans to expand the Kolínplant from the current 152,000 square meters to 173,000 square meters to accommodate the production area for the new electric vehicle and its battery, as well as new paint and welding shops.

Significant Foreign Investment for the Czech Republic

Toyota announced EV production in the Czech Republic plans at the Office of Government on September 3, 2025. The government of Czech Republic considers Toyota’s investment significant in boosting the country’s competitiveness in the automobile industry.

“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,” Prime Minister of the Czech Republic Petr Fiala said during the ceremony.

For the Japanese automaker, the move to produce electric vehicles in Europe represents a major milestone in rolling out its multi-pathway strategy that is aimed at achieving carbon neutral operations in the region 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,” Toyota Motor Europe President & CEO, Yoshihiro Nakata said.

Focus on the EV Battery Industry

Toyota’s entry into the EV battery market comes at a time when countries are increasing investment in the industry. In May 2025, the UK announced a £1 billion AESC gigafactory funding to boost EV battery production. Through the deal, Japan-based battery maker AESC would set up a production factory in Sunderland in Northern England.

The UK government said the AESC gigafactory funding would facilitate production of batteries that can power 100,000 electric vehicles annually. Toyota, which is the world’s largest automaker by sales, has been cautious in its EV approach compared to competitors like General Motors.

The company has benefited significantly from expanding its hybrid line-up in different markets, including the U.S. In March 2025, Toyota said it will launch nine EV models in Europe in 2025-26. The EV models will be for its Toyota and premium Lexus brands. The Kolínplant has an annual production capacity of about 220,000 cars. Currently, Toyota only manufactures its Aygo X and Yaris Hybrid brands at the Czech plant.