Mercedes-Benz has officially opened a major expansion of its manufacturing facility in Kecskemét, Hungary, marking an important milestone in the company’s global electrification strategy. The upgraded plant has now started production of the all-new electric Mercedes-Benz C-Class while the automaker also confirmed that the upcoming compact G-Class will be built exclusively at the Hungarian site.
Following a €1 billion investment, the Kecskemét facility has grown from 200 to 440 hectares, making it the largest Mercedes-Benz production site in Europe and one of the company’s most advanced manufacturing hubs worldwide. The expansion adds two new body and assembly halls, a second press shop, a state-of-the-art paint facility, and an on-site battery assembly plant designed to support the next generation of electric vehicles.
The official opening ceremony was attended by Hungarian Prime Minister Péter Magyar along with senior government officials and Mercedes-Benz executives.
Electric C-Class Production Officially Underway
The expanded factory has begun production of the all-electric Mercedes-Benz C-Class, making it the first battery-electric core model to be manufactured in Kecskemét. The symbolic start of production represents another major step in Mercedes-Benz’s transition toward an all-electric future.
Unveiled earlier this year, the electric C-Class is built on Mercedes-Benz’s new MB.EA-M platform and serves as a lower-slung alternative to the electric GLC SUV. The C 400 4MATIC features a 94 kWh battery, up to 330 kW DC fast charging capability, 360 kW of system output, and a WLTP driving range of up to 762 km (474 miles). Power is delivered through a rear-mounted electric motor paired with a two-speed transmission, technology shared with the latest CLA.
Mercedes-Benz says key components for both the electric C-Class and the electric GLB—including body structures and high-voltage battery packs—are produced directly at the Kecskemét site. By localizing production, the company aims to shorten supply chains while improving flexibility and resilience against market disruptions.
Compact Electric G-Class Confirmed for Hungary
Mercedes-Benz also confirmed that the upcoming compact version of the legendary G-Class will be produced exclusively in Kecskemét.
Although the automaker has not yet revealed technical specifications or a launch date, the announcement further strengthens the strategic importance of the Hungarian facility as Mercedes-Benz expands its electric vehicle lineup across both compact and core segments.
Flexible Production for an Electric Future
The Kecskemét plant is designed to maximize manufacturing flexibility.
The original production hall continues to build both internal combustion and battery-electric vehicles on the same production line, allowing Mercedes-Benz to quickly adjust output based on customer demand. Meanwhile, the newly completed assembly hall is dedicated exclusively to fully electric models.
The plant is also becoming more closely integrated into Mercedes-Benz’s European production network. Similar to the company’s Rastatt facility in Germany, Kecskemét will share production responsibilities with other factories. In the future, for example, the electric GLC will be assembled in both Hungary and Bremen depending on market demand.
AI and Digital Manufacturing Drive Efficiency
Mercedes-Benz describes Kecskemét as one of the most technologically advanced plants in its global production network.
The facility operates using the Mercedes-Benz Operations 360 (MO360) digital production ecosystem, which connects manufacturing, quality control, and supply chain data across all production sites worldwide.
One of the plant’s standout innovations is the Digital Factory Twin, created using NVIDIA Omniverse technology. For the first time, Mercedes-Benz has built a complete virtual replica of an entire assembly hall, allowing engineers to simulate production processes, validate manufacturing workflows, and optimize operations before physical production begins.
Artificial intelligence also plays a growing role in daily operations. The MO360 Vision System uses camera-based inspection technology to detect manufacturing defects in real time, while AI-powered analytics help employees monitor production quality and improve efficiency throughout the assembly process.
Sustainability Built Into the Expansion
Environmental sustainability was a key focus during the expansion project.
A new 27.4 MW solar park, combined with rooftop photovoltaic systems installed across the new production buildings, gives the plant a total solar capacity of 42.3 MW. Mercedes-Benz estimates the renewable energy installation will supply approximately 25% of the site’s annual electricity needs.
The new paint shop has also been engineered for greater efficiency, reducing energy consumption by around 20% compared with the previous facility while lowering CO₂ emissions by roughly 80%. Additional investments in water conservation and waste reduction further support the company’s sustainability goals.
Investing in the Local Workforce
The Kecskemét plant currently employs more than 5,000 people, making Mercedes-Benz one of the region’s largest employers.
Alongside its manufacturing investment, the company continues to support workforce development through the Mercedes-Benz Academy Kecskemét, partnerships with Neumann János University, vocational training programs, and employee-focused initiatives including on-site childcare facilities.
With production of the new electric C-Class now underway and the future compact G-Class confirmed for the site, Kecskemét is set to play an increasingly important role in Mercedes-Benz’s next generation of electric vehicles.
