Toyota Motor will begin manufacturing electric vehicles in the Czech Republic by 2028, marking the Japanese automaker’s first attempt at European EV production as it scrambles to catch rivals in the continent’s rapidly evolving market.
The company plans to produce around 100,000 electric sport utility vehicles annually at its Czech subsidiary, according to Nikkei. The move represents Toyota’s belated recognition that its hybrid-heavy strategy may no longer suffice in Europe, where battery-electric vehicles comprised 16% of new registrations in May 2025.
Toyota currently sits in a manufacturing pool with Tesla and Stellantis that achieved just a 13% BEV share in May, well below the European average. This performance lags significantly behind competitors like Volkswagen, which overtook Tesla in European EV sales during the first half of 2025, and Chinese brands that captured 35% of new EV registrations in 2024.
The Czech facility will support Toyota’s broader European electrification timeline, which includes plans for 14 EV models by 2026, including the C-HR+ SUV and an updated bZ4X. However, the 2028 production start date means Toyota will be entering local manufacturing just as the European market becomes increasingly crowded with established players and new Chinese entrants offering competitive pricing and advanced technology.
The announcement suggests Toyota recognizes that importing EVs from Japan may no longer provide the cost structure needed to compete effectively in Europe’s price-sensitive electric vehicle segment.
