Mercedes-Benz Begins All-Electric C-Class Production at Hungary Kecskemét Plant

Mercedes-Benz has officially begun Mercedes-Benz all-electric C-Class production at its expanded Kecskemét manufacturing facility in Hungary. The production milestone, announced on July 13, represents the first time a battery-electric core model has been manufactured at the site. The launch forms part of the automaker's broader strategy to strengthen its European electric vehicle manufacturing footprint while maintaining production flexibility for both conventional and battery-electric vehicles.

EUR 1 Billion Investment Expands Manufacturing Capacity

The production launch follows a EUR 1 billion investment under the company's 2022–2026 business plan. Through this expansion, the Kecskemét facility has doubled its overall footprint to approximately 440 hectares. New body, paint, assembly and battery production facilities have been added, allowing the plant to support a broader mix of vehicle programs while reinforcing the company's flexible manufacturing network across Europe.

Key Highlights of the Kecskemét Plant Expansion

The investment introduces significant upgrades across manufacturing operations to improve production flexibility, efficiency and future electric vehicle capacity.

• Production of the new all-electric C-Class begins at the site.
• Factory footprint expanded to approximately 440 hectares.
• New body, paint, assembly and battery production facilities added.
• Internal combustion engine and battery-electric vehicles will be produced together.
• Flexible manufacturing supports demand-based production across European plants.
• Localized battery manufacturing improves supply chain resilience and production efficiency.

Flexible Manufacturing Supports Future Vehicle Programs

The Kecskemét facility will manufacture both internal combustion engine and battery-electric vehicles on flexible production lines. Coordination with other Mercedes-Benz manufacturing facilities will enable demand-based production of models such as the electric GLC. In addition, the plant has been selected as the exclusive production location for the upcoming compact version of the G-Class, further expanding its strategic role within the company's European manufacturing network.

Advanced Digital Technologies Enhance Production Operations

The expanded facility also incorporates several advanced manufacturing technologies designed to improve operational performance. These include the MO360 production ecosystem, AI-supported quality control systems and a Digital Factory Twin developed with NVIDIA Omniverse. Together, these technologies are intended to improve manufacturing accuracy, optimize production processes and support more efficient factory operations as vehicle production continues to evolve.

Mercedes-Benz Kecskemét Plant Expansion at a Glance

The expansion highlights Mercedes-Benz's continuing investment in flexible manufacturing, localized component production and advanced digital technologies. By combining internal combustion engine and battery-electric vehicle production at the same site while integrating AI-driven manufacturing tools and localized battery production, the company aims to strengthen supply chain resilience, improve production efficiency and support changing market demand across Europe.

Frequently Asked Questions

Why is Mercedes-Benz starting all-electric C-Class production at the Kecskemét plant important?
The start of all-electric C-Class production marks the first time a battery-electric core Mercedes-Benz model has been manufactured at the Kecskemét facility in Hungary. Supported by a EUR 1 billion investment, the expansion strengthens the company's European manufacturing network through larger production capacity, localized battery manufacturing, flexible production of electric and combustion-engine vehicles, and advanced digital technologies including MO360, AI-supported quality control and a Digital Factory Twin developed with NVIDIA Omniverse.