Toyota plans to produce battery electric vehicles in the Czech Republic from 2028
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Toyota plans to produce battery electric vehicles in the Czech Republic from 2028
- Toyota, the world's leading carmaker since 2020, does not have a very strong position in the market of battery electric powertrains, as its sales of models equipped with this type of powertrain currently represent only 1.3% of its total production. Its current battery electric models range is limited, with only the BZ4X SUV and its more luxurious version Lexus RZ, plus a compact SUV from the Lexus brand (the UX) as well as pickup trucks from Stellantis, the ProAce and the ProAce City available with a combustion engine but also in battery electric.
- In the fall of 2025, two models will be added to Toyota's battery electric range: the CHR+ SUV produced in Turkey and the Urban Cruiser SUV produced in India (in cooperation with Suzuki).
- But Toyota, aware of the increasingly restrictive regulatory context which condemns thermal cars by 2035, wants to accelerate its electrification program with an assembly program for a new battery electric SUV which will be produced from 2028 in the Czech Republic, in the Kolin factory, where the Aygo X hybrid and the Yaris hybrid are currently produced.
- The carmaker aims to produce 100,000 units per year, in a factory that has a production capacity of 300,000 vehicles per year, which means that Toyota plans to produce 100,000 units of this model there in addition to the 100,000 Aygo X hybrid and 100,000 Yaris hybrid each year. Ultimately, this factory is expected to produce only battery electric vehicles.
Western European carmakers have relocated a third of their production to Eastern Europe, Morocco and Turkey
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Western European carmakers have relocated a third of their production to Eastern Europe, Morocco and Turkey
- The European automobile industry, located mainly in the West of the continent in the 20th century France, Germany, England, Italy, Belgium, the Netherlands), decided to gradually relocate part of its production to countries with lower labour costs, firstly to make more profits and secondly to invest in these new markets where the motorization rate was very low. We thus saw part of this automobile production being relocated to Spain and Portugal in the second half of the 20th century, then after the fall of the USSR in 1991, to the countries of Eastern Europe, former satellites of the USSR, such as Poland, the Czech Republic, Slovakia, Romania and Hungary. These relocations were especially favoured after the entry of these countries into the European Union in the early 2000s.
- This production located in Eastern Europe has become increasingly important, increasing from 2 million vehicles (PC+LUV) in 2005 to 4 million in 2019 and 3.5 million in 2024. At the same time, production in Western Europe decreased from 16 million vehicles (PC+LUV) in 2005 to 13.5 million in 2019 and 10.5 million in 2024.
- Turkey and Morocco have emerged as new locations for the European automotive industry. Production in these two countries has grown from 800,000 units in 2005 to 1.75 million units by 2024.
- In total, Western Europe has relocated a third of its production to Eastern European countries, Turkey, and Morocco. Indeed, by 2024, 5.25 million vehicles will be produced in these offshoring countries, compared to the 10.5 million vehicles produced in Western Europe.
The Renault plant in Oran has not produced vehicles since 2023
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The Renault plant in Oran has not produced vehicles since 2023
The Renault plant in Oran (Algeria) has been at a standstill since 2023, and several factors explain this situation:
1. New local requirements : The Algerian government now requires a local integration rate equal to or greater than 30% of parts in produced vehicles. Renault, which used semi-assembled kits (SKD) from Turkey, with a local integration rate of less than 10%, struggled to adapt to this constraint. Between 2020 and 2023, the Oran plant therefore operated at a reduced capacity.
2. Administrative blockage : Renault has been waiting for several years for official approval from the Algerian Ministry of Industry to restart its activities. Despite investments to comply with the new regulations, authorization has been slow in coming.
3. Diplomatic tensions : relations between France and Algeria have been experiencing a new period of tension for several months (the Western Sahara affair), which is hampering bilateral industrial projects, such as that of Renault.
4. Increased competition : other carmakers such as Stellantis have established themselves in compliance with the new rules (local integration rate equal to or greater than 30%), which has put Renault in difficulty on the local market.
Despite rumors of the permanent closure of its Oran plant, Renault has submitted a new application for approval and implemented a redundancy plan to preserve jobs in preparation for a possible restart. The carmaker hopes to restart production with new models and an adequate integration rate, but everything will depend on the decision of the Algerian authorities. Positive signals seem to be emerging: recent meetings between Algerian and French officials have revived hopes of a restart. The Algerian Minister of Industry even mentioned an imminent resumption of the plant. Renault therefore hopes to be able to resume production by the end of 2025.
Review of the Munich Motor Show 2025
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Review of the Munich Motor Show 2025
The Munich Motor Show 2025 was a good year, with many new products on display.
Three distinct groups could be discerned within this Salon.
- First group: the three major German carmakers (Volkswagen, BMW, Mercedes).
• The Volkswagen Group has made a special effort by introducing battery electric B-segment cars: VW ID Polo (ex-ID2), VW ID Cross (ex-ID2X), Skoda Epiq, Cupra Raval. These four models could boost the battery electric market in Europe, which has not yet reached 18% of the European passenger car market.
• Porsche (a subsidiary of the Volkswagen group), BMW and Mercedes have each unveiled a battery electric SUV: the Porsche Cayenne EV, the BMW iX3 and the Mercedes GLC EV. The particularity of which is to have an exterior design different from that of their thermal equivalent models, the Porsche Cayenne, BMW X3 and Mercedes GLC currently sold on the European market.
- Second group: a set of representative Chinese brands.
Thus, we could see the Polestar 5, Deepal S05, Xpeng P7, GAC Aion, Leapmotor B05 and NIO Firefly.
- Third entity: non-German and non-Chinese carmakers such as the French Renault which unveiled the new Clio VI marketed from the beginning of 2026, the Korean Hyundai which unveiled the concept car of what will become the Ioniq 3 and the Turkish Togg present for the first time at a European Motor Show.
Current plans for Chinese factories to set up in Europe
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Current plans for Chinese factories to set up in Europe
Even before the introduction of surcharges on imported electric cars from China, several Chinese automakers announced plans to expand into the European market through assembly plants to be built or acquired. Here are the confirmed or ongoing projects:
1. BYD is completing construction of its Hungarian plant in Szeged , which is expected to roll out its first models next fall. Four different models for the European market could be assembled at this plant in 2026-2027, including the Dolphin Surf (B segment). A second plant is planned in Turkey, and a third is reportedly under consideration in Italy.
2. Chery has been using the former Nissan plant in Barcelona (Spain) since the end of 2024. Several models for the European market are assembled there, under the Ebro and Omoda brands.
3. MG of the SAIC group is the leading Chinese seller in Europe . This carmaker therefore plans to manufacture its models for the European market in Europe. It is actively looking for a production site, and Spain is apparently the favorite.
4. Geely plans to assemble its Smart and Polestar models in Europe for the European market. Its choice could fall on Hungary, the Czech Republic, or Slovakia. According to the latest news, Slovakia has been chosen. The plant is expected to open in 2028.
5. Dongfeng has still not abandoned its plan to produce cars in Italy . And Nissan is opening the doors of its British plant to it.
6. Xpeng plans to assemble its models in Europe . This carmaker could take advantage of its ties with VW to use some of its factories, particularly those that VW plans to close (Osnabrück and Dresden).
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