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In a surprise move, Toyota bypasses Germany and selects the Czech Republic as the home for its first electric vehicle production site in Europe.

Toyota has confirmed a $728 million investment in its Kolín plant in the Czech Republic, where it will produce an all-new battery-electric model. The expansion includes a brand-new production line, welding shop, and paint facility, marking the beginning of Toyota’s EV manufacturing era in Europe.

A Major Win for the Czech Republic
Czech Prime Minister Petr Fiala celebrated the announcement, stating that the expansion “not only strengthens current production but also represents a crucial step toward modernization and preserving our automotive industry.” With the auto sector accounting for nearly 10% of the Czech Republic’s GDP, the economic impact of this investment is expected to be significant.

A man working on his laptop and writing in a notebook at a desk.

Germany Left Out
The decision shocked many in the industry, as Germany seemed the likely candidate to host Toyota’s first European EV factory, given its industrial strength and leadership in automotive innovation. However, the move to the Czech Republic highlights Toyota’s focus on competitive costs, skilled labor, and a central location in Europe.

A New Era for Toyota in Europe
While Toyota has not yet revealed what type of EV will be built in Kolín, one thing is clear: this investment positions the automaker as a stronger player in the European electric vehicle market. By committing to local production, Toyota is taking a strategic step to reduce reliance on Asia and accelerate its global transition toward electrification.

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