Toyota's investment in electric car production in Czechia

Toyota has decided to significantly expand production at its Kolín plant and prepare it for the production of electric cars. The investment itself is having a significant impact on the Czech economy. The investment is expected to reach CZK 16.65 billion. However, the total impact, including indirect and induced effects, exceeds CZK 34 billion, with a gross value added of CZK 12.8 billion and support for approximately 1,750 jobs. Household incomes will increase by more than CZK 6.5 billion and public budgets will receive an additional CZK 5.3 billion, mainly thanks to higher social security and corporate tax revenues.

The model of the functioning of the new production capacities after their commissioning shows an even more significant benefit. The annual impact on the Czech economy exceeds CZK 117 billion in production and generates gross value added of more than CZK 36 billion. The new production capacities will create 245 new jobs, but production will support several thousand more jobs in the related supply chain. For the public sector, this means additional revenues of over CZK 15 billion per year, with social security, corporate income tax, and VAT being the key items.

Toyota is thus not only strengthening its production base in Czechia, but also confirming the strategic importance of the automotive industry for the domestic economy. Car manufacturers are the largest exporters and investors in research and development in Czechia, and thanks to the new production line, Kolín is becoming one of the key centers of the transformation towards zero-emission mobility. The benefits of the investment and subsequent operation are not limited to Toyota itself – they also significantly benefit an extensive network of suppliers, local services, and the regional economy. Higher employment and wage growth also mean stronger household purchasing power, which in turn translates into higher consumption and the development of small and medium-sized enterprises in the surrounding area.

Furthermore, Toyota's move shows that Czechia is capable of attracting and implementing investments in technologies of the future. Ensuring long-term production of electric cars in Kolín contributes not only to maintaining a strong industrial tradition, but also to modernizing the economy towards sustainable growth that is in line with European climate goals and strengthens the country's position in global production chains.