Toyota to Start Electric Vehicle Production in Czech Republic by 2028

According to a report by Nikkei on July 29, Japanese automaker Toyota plans to begin production of electric vehicles in the Czech Republic as early as 2028, with a target annual production capacity of approximately 100,000 units. This will mark the company's first electric vehicles produced in Europe. Toyota aims to launch a total of 14 electric vehicle models in Europe by 2026, including new products like the C-HR+ SUV and an upgraded version of its first mass-produced electric vehicle, the bZ4X. Despite a sluggish demand for electric vehicles in the European market, where sales are expected to see a slight decline of 1% year-on-year to 1.99 million units in 2024, the popularity of electric vehicles in Europe still surpasses that in Japan, where the market share remains below 2%. Notably, the European Union plans to ban the sale of new gasoline passenger vehicles starting in 2035, with exceptions for models using renewable synthetic fuels. Toyota believes that localizing electric vehicle production is the best strategy to prepare for its long-term environmental policy, with a goal of achieving carbon neutrality in Europe by 2035. Currently, electric vehicles account for less than 2% of Toyota's total sales. The company is making efforts to accelerate electric vehicle development, with plans to increase the number of in-house developed electric vehicle models to 15 by 2027, including some from its luxury brand Lexus, and to achieve an annual production target of 1 million units. Currently, Toyota has five self-developed electric vehicle models, produced only in Japan and China. To mitigate the impacts of tariffs and foreign exchange risks, and to shorten delivery times, Toyota plans to expand production to the United States, Thailand, and Argentina. Additionally, due to slowing market demand, Toyota recently adjusted its short-term targets, with expectations to produce approximately 800,000 electric vehicles by 2026, a significant reduction of nearly 50% from its original plan. Toyota has previously stated its aim to reach annual sales of 1.5 million electric vehicles by 2026 and 3.5 million by 2030, although these figures are seen more as shareholder benchmarks than specific targets.