Czechia secures record investment to launch Toyota's first European EV plant

Global car manufacturer Toyota plans to produce tens of thousands of electric cars annually at its plant in Kolín, Central Bohemia, the company's first such manufacturing facility in Europe. 

Czech Prime Minister Petr Fiala and Minister of Industry and Trade Lukáš Vlček announced Wednesday that the Japanese automaker will invest CZK 17 billion.

"I am very pleased that the Czech Republic was able to attract such a significant foreign investor as Toyota, even though other countries were also seeking this,” Fiala said. 

The prime minister added that the investment is a “crucial step” for the country's automotive industry, which accounts for about 10 percent of its GDP. If the country wants to maintain it, it needs to be systematically modernized, Fiala noted.

The investment is expected to create 245 new jobs at the Kolín factory, which will also produce batteries and construct new paint and welding shops. "These projects are crucial for the future of the Czech automotive industry. They increase competitiveness and support innovation,” he said. The current plant in the town employs around 4,000 people.

Vlček, who was part of the negotiating team that secured the deal, said the project is a "great success for the Czech Republic." He estimated the state's benefit at around CZK 6 billion. 

Yoshihiro Nakata, president and CEO of Toyota Motor Europe, underscored the company's ties to Czechia. "The advanced project…will contribute to the transition to cleaner and more efficient transport solutions," Nakata said. 

The expansion and production of electric vehicles at the Kolín plant will help the manufacturer meet its goal of achieving carbon neutrality in Europe by 2040.

“In Europe, where environmental regulations are tightening, electric vehicles account for about 15 percent of new car sales,” Japanese financial news site Nikkei wrote. In late 2024, Toyota inaugurated its modern logistics hub in the area. The center, with a capacity of producing or repairing 350,000 cars per year, serves the entire Central Europe region. 

The company noted that the substantial investment demonstrated Toyota's “commitment” to doing business in the Czech Republic and reflects its confidence in the region's potential.