Toyota Plans to Build EVs in Czech Republic by 2028

Toyota plans to start building electric vehicles in Europe at a new Czech plant by 2028, with a production capacity of around 100,000 EVs per year. The automaker aims to launch 14 battery-electric models across Europe by 2026 and achieve carbon neutrality in the region by 2035. European-built EVs will help Toyota capture market share in the fastest-growing segment and protect margins. Investors will be watching for updates on capital spending and profit impact.

Toyota Motor Corporation (TM) is set to embark on a significant strategic shift in Europe by beginning the production of electric vehicles (EVs) at a new Czech plant by 2028. The Japanese automaker aims to churn out around 100,000 EVs annually, a move that aligns with its broader goal of launching 14 battery-electric models across Europe by 2026 [3]. This initiative is part of Toyota's ambitious plan to achieve carbon neutrality in the region by 2035 [4].

The decision to localize EV production in Europe is driven by several factors. Firstly, the European market for battery-electric cars is much larger than in Japan, where EVs make up only 2% of new car sales [3]. Secondly, the European Union's ban on new combustion engine vehicle sales by 2035 is a significant regulatory driver [3]. Lastly, Toyota is seeking to capture market share in the continent's fastest-growing segment and protect margins by producing EVs locally [5].

Toyota's move follows a broader trend in the automotive industry, where legacy manufacturers are feeling the pressure from Chinese manufacturers such as BYD, Jaecoo, and Xpeng, which collectively hold a 5.1% share in Europe [3]. However, Toyota's traditionally cautious approach to EVs means it is likely to integrate more hybrid solutions and range-extender technologies rather than a full pivot towards fully electric vehicles [3].

Investors will be closely watching Toyota's rollout of 14 EV models by 2026 and the first Czech-built units in 2028 for clues on capital spending and profit impact. By producing EVs in Europe, Toyota can cut logistics costs, sidestep import duties, and respond faster to the growing demand for electric vehicles [5].

References:
[1] https://www.reddit.com/r/electricvehicles/comments/1mcgg0b/toyota_will_build_evs_in_europe_for_the_first/
[2] https://asia.nikkei.com/Business/Automobiles/Toyota-expands-procurement-of-Chinese-parts-in-Thailand
[3] https://www.carscoops.com/2025/08/toyota-finally-blinks-as-europes-ev-market-closes-in/
[4] https://seekingalpha.com/news/4473682-toyota-aims-to-make-electric-vehicles-in-europe-for-the-first-time
[5] https://ca.finance.yahoo.com/news/toyota-build-evs-czech-republic-230658991.html