Toyota expands Czech plant to build its first European EV

Toyota is set to manufacture its first European-made battery-electric vehicle in its plant in the Czech Republic. The company's European president Yoshihiro Nakata made the announcement in a ceremony at the Czech government office on Wednesday.

The firm will join forces with the Czech state to expand the production line and build a new battery assembly facility at Toyota's existing plant in Kolin, around 50 kilometres east of Prague.

For Toyota, this decision signals a further rollout of its strategy designed to make operations carbon-neutral in Europe by 2040, the company said in a statement.

"This advanced technology project will enhance our presence in the European market and contribute alongside our other solutions towards more efficient transportation," Yoshihiro Nakata, president and CEO of Toyota Motor Europe, said at the event.

The production of the new EV and batteries is a €680 million investment by Toyota, including a government incentive of up to €64 million.

"The estimated benefits for the state reach €250 million," said Lukáš Vlček, Czech minister of industry and trade at the event.

Prime Minister Petr Fiala said the new line will create another 245 jobs at the factory that already employs 3,200 people.

"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," said Fiala.

Toyota did not disclose details of when production would start or of the model.

The world’s top automaker currently makes Aygo X and Yaris Hybrid models at the plant, which made over 225,000 cars last year.