Toyota Finally Blinks As Europe’s EV Market Closes In

Toyota will reportedly commence building EVs in its Czech Republic plant as early as 2028, with an annual target of 100,000 units

                                        https://www.carscoops.com/author/sam-d-smith/                                    

by Sam D. Smith

45 minutes ago

A new chapter has been written in Toyota’s love-hate relationship with EVs. The company finally seems to be embracing the way of battery-electric, albeit slowly, with the introduction of the all-new C-HR+ alongside their initial toe-in-the-water experiment of the bZ4X that is currently known as the bZ.

Likely in an effort to up its game, a new report claims that Toyota will be increasing its European EV production as early as 2028, with the company’s Czech Republic facility set to become an electric vehicle manufacturing hub. A lofty target of 100,000 EVs per year is being touted for the new facility, according to Nikkei Asia.

Read: Subaru Plans To Win Europe With Rebadged Toyotas, One Of Which Is An E-Outback

This move follows Toyota’s broader commitment to offering a comprehensive lineup of 14 EV models in Europe by 2026, including the upcoming electric versions of the C-HR+ and Urban Cruiser,and the updated bZ crossover.

Localizing EV Production To Europe

The decision to localize EV production aligns with Toyota’s long-term sustainability goals and the European Union’s upcoming ban on new combustion engine vehicle sales by 2035. Despite a recent 1% dip in European EV sales, electric vehicles maintain a significant market presence, accounting for 15.4 percent of new car sales in the Old Continent.

The decision to make EVs in Europe makes more sense when you realise that the market for battery electric cars is much larger than in Japan. There, EVs make up only 2 percent of new car sales.

Meanwhile, Toyota, like many legacy manufacturers, is feeling the pressure from Chinese manufacturers, including the likes of BYD, Jaecoo, and Xpeng, which collectively hold a 5.1% share in Europe.

A Sign Of Things To Come

Despite Toyota’s traditionally cautious outlook, its new plan is indicative of a broader change in the industry. Some may say that it’s also a move being made to address the growing demand for electric options in Europe, as well as the regulatory landscape and the looming ICE ban.

However, even though the company will be bringing more EVs to the market, don’t expect a seismic shift in its strategy, as it will continue to be cautious regarding fully electric vehicles due to practical challenges like battery weight and range limitations. Rather than a full-on pivot towards EVs, Toyota is likely to integrate more hybrid solutions and range-extender technologies to maintain real-world usability and appeal, especially for larger vehicles.