The company confirmed on Wednesday that it would invest about €680 million ($796 million) in expanding the Kolín facility, which currently produces the Aygo X and Yaris Hybrid models with an annual capacity of 220,000 vehicles. As part of the investment, Toyota will also establish a new battery assembly facility at the site.
The Czech government is supporting the project with up to €64 million in funding for the battery facility, underlining the importance of the auto industry to the country’s economy. The sector contributes around 10% of Czech GDP.
Prime Minister Petr Fiala welcomed the announcement, describing it as a “key step toward keeping car manufacturing in our country” as the global industry transitions toward new technologies.
While Toyota has trailed behind some of its competitors in committing to electric vehicles, the world’s largest automaker by sales has reaped the benefits of a slower approach. Its strong hybrid lineup has helped cushion it against cooling global EV demand, especially in the U.S., its largest market.
Earlier this year, Toyota said it would launch nine new fully electric models in Europe in 2025 and 2026 under both the Toyota and Lexus brands.
The company has not disclosed details of the new EV to be built in the Czech Republic or its production timeline, but analysts see the move as a strategic step in strengthening Toyota’s European manufacturing base and aligning with EU clean mobility targets.