Mercedes expands Kecskemét plant: E-Class electric is coming

Eastern Competitiveness Enhancer Hungary Is Set to Become a More Productive Mercedes Forge

2026-07-13 Source: dpa | Translated by AI 2 min Reading Time

Mercedes CEO Ola Källenius has highlighted the plant in Kecskemét, Hungary, as a key location, as reported by dpa ...

Largest Mercedes-Benz plant! The Stuttgart automaker has upgraded its plant in Kecskemét, Hungary, with the help of around one billion euros. Ola Källenius' strategy is expected to succeed because production costs in Hungary are drastically lower than in Germany.(Image: Mercedes-Benz) — Largest Mercedes-Benz plant! The Stuttgart automaker has upgraded its plant in Kecskemét, Hungary, with the help of around one billion euros. Ola Källenius' strategy is expected to succeed because production costs in Hungary are drastically lower than in Germany.
(Image: Mercedes-Benz)

The global competition is becoming increasingly intense, according to Mercedes-Benz, both in terms of technology and regarding costs, speed, and quality. Ola Källenius stated this at the opening of the plant expansion. He praised: factories like the one in Kecskemet are a competitive advantage and a powerful testament that top quality and cost efficiency can go hand in hand. The plant costs set benchmarks in Europe. According to previous statements by CFO Harald Wilhelm, production costs in Hungary are about 70 percent lower than in Germany. This is part of a strategy, as the share of production in low-wage European countries is set to double from 15 to 30 percent. In contrast, the maximum possible production in Germany will continue to shrink in the coming years—to a maximum of around 900,000 vehicles. The new Hungarian Prime Minister Peter Magyar also attended the opening. Kecskemet is located about 80 kilometers (approx. 50 miles) southeast of Budapest.

The design of the VW drivetrain. The two electric motors are axially arranged, and a multi-plate clutch enables through-drive for parallel operation. (Image:VW)

Mercedes' Hungary Location Is Already the Most Powerful in Europe

The Mercedes-Benz Group has significantly expanded the site, where vehicles have been rolling off the assembly line since 2012. Not least, it is now reportedly the largest car factory in Hungary. With a potential annual capacity of around 400,000 vehicles, Kecskemet would also become the largest Mercedes-Benz factory in Europe. For approximately one billion euros, two new halls for bodywork and assembly lines were built in the provincial city. In addition, a second press shop, a new paint shop, and a battery assembly facility were constructed. The A-Class and the SUV GLB are already being produced in Kecskemet, and now the electric C-Class is being added. This marks the first time a model from the volume segment (Core) is being manufactured in Hungary. According to the company, a dual-track production concept is being implemented. This means that in the existing hall, combustion and electric vehicles are being flexibly produced on a single line. The new hall, however, is reportedly designed exclusively for fully electric models. A compact version of the G-Class will also be manufactured exclusively in Hungary in the future. Furthermore, the GLC could also be produced there.

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