Japanese automaker Toyota Motor Corp. (TM) is investing $792 million into its manufacturing plant located in the Czech Republic.
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The investment will go toward adding a new production line that will help the world’s largest automaker make a brand new electric car. The Czech plant will become Toyota’s first site to produce electric vehicles in Europe.
The Toyota plant is situated in Kolin, about 31 miles east of Prague. The European plant is being modified to make electric vehicles with an incentive from the Czech Republic’s government of $75 million. Czech Prime Minister Petr Fiala said Toyota’s modified production facility will lead to the creation of 245 jobs at the factory, which already employs 3,200 people.
Electric Vehicle Push
Toyota has not said when production of its new electric vehicle model for the European market will begin, or what type of car it will be. The company currently makes the Aygo X and Yaris Hybrid vehicles at the plant, which built more than 225,000 cars in 2024.
Toyota has a goal of achieving sales of 1.5 million electric vehicles per year by 2026 and selling 3.5 million battery-powered vehicles annually by 2030. The company is also developing a method for mass producing solid-state batteries for electric vehicles and aims to commercialize the technology by 2028. TM stock has declined 1% this year.
Is TM Stock a Buy?
Let’s look at the three-month performance of Toyota’s stock. As one can see in the chart below, TM shares have risen 3% over the last 12 weeks.
