Toyota will build its next battery-electric car at the Aygo X and Yaris factory in the Czech Republic, the company has confirmed.

An investment of €680 million (£592m) will be used to expand the factory from 152,000m2 to 173,000m2, adding a new battery production line, paint shop and welding facility.

The new development will increase the plant’s capacity beyond its current 220,000 cars per year, said Toyota, and the majority of components used for the new model will be sourced from within the Czech Republic. 

The company has yet to confirm what form the new model may take. The company referred to “multi-pathway” production, suggesting it might be a Europe-focused EV based on the same TNGA-B structure as the Yaris. 

However, it could occupy an altogether different market segment. Toyota Europe product and marketing boss Andrea Carlucci told Autocar earlier this year that an electric car in the vein of the Yaris was not yet viable. "We have deliberately decided to start [our electric car sales] in the fastest-growing segments [C, D and E],” he said. “The right moment will arrive, but this is not quite now.”

Toyota’s investment in the factory is backed by €64m (£56m) of funding from the Czech government. Czech prime minister Petr Fiala described the development as “crucial” for the future of the nation’s car industry, adding it will create 245 new jobs.