Czech Business Today

Toyota has announced a major step forward for the Czech automotive industry: the company will begin producing a new battery-electric vehicle at its Toyota Motor Manufacturing Czech Republic (TMMCZ) plant in Kolín. The investment, worth around €680 million, includes the expansion of the production site, a new paint shop and welding line, and the installation of battery assembly facilities. The Czech government will support the project with up to €64 million, recognizing its importance not only for the country’s industrial base but also for the transition to clean mobility.

For Czech businesses, this is more than just another foreign investment. It signals that the country remains competitive in attracting top global players even in the face of tough European and Asian rivals. The fact that Toyota chose the Czech Republic reflects its stable business environment, strong infrastructure, and a highly skilled workforce. The investment will directly create 245 new jobs in the Kolín region, while also generating a ripple effect across the domestic supply chain, as most components will be sourced locally. This creates a significant opportunity for Czech suppliers to integrate more deeply into the value chain of next-generation vehicles.

The government sees the project as crucial for maintaining the Czech Republic’s role as an automotive powerhouse. With the automotive sector making up around 10% of national GDP, modernization is key to long-term competitiveness. Toyota’s decision helps ensure that production does not simply remain in the country but evolves toward higher technological value. For Czech suppliers and SMEs, this means a chance to adapt, innovate, and secure long-term contracts in an industry moving rapidly toward electrification.

Beyond its economic weight, the investment aligns with the EU’s broader decarbonization goals. Toyota has set its European carbon neutrality target for 2040, and positioning the Czech Republic at the heart of its BEV strategy underscores the country’s role in shaping the continent’s clean mobility future. For Czech companies, especially in R&D and advanced manufacturing, this creates opportunities to develop solutions for batteries, lightweight materials, and smart production systems.

Toyota’s presence in Kolín is already substantial: the plant produces models like the Aygo X and Yaris Hybrid, with an annual capacity of around 220,000 vehicles. From November 2025, the Aygo X will be offered exclusively as a hybrid. With the new BEV line, the capacity and portfolio of the factory will grow, and so will the reliance on Czech suppliers. For many domestic firms, this is a chance to demonstrate their ability to deliver high-quality, innovative parts not only for hybrid vehicles but also for the battery-electric future.

The Czech business community views this development as a breakthrough moment. It is not only about hosting another production line but about positioning the country at the cutting edge of Europe’s industrial transition. By combining foreign investment with domestic know-how, the Czech Republic strengthens its role in the European automotive landscape while offering local businesses the chance to become integral partners in a global supply network increasingly defined by sustainability and technology.

Source: Ministery of Industry and Trade of the Czech Republic