Mercedes-Benz is enhancing its Kecskemét facility and will commence production of the new electric C-Class.

Mercedes Benz is all set to ramp up its global production network and is updating its Kecskemet site in Hungary, by increasing its global footprint from 200 to 400 hectares. This means that the Kecskemet facility will be the largest automotive production facility in Hungary and the brand's largest global production network.

According to Mercedes, there are investments of €1 billion expansion of Kecskemét facility as a part of the Mercedes-Benz Business Plan 2022-2026. With this, Mercedes is committed to strengthening the efficiency and future viability of its entire production network.

Mercedes Electric C-Class Production

With the increase in the manufacturing capacity of the Kecskemet plant, Mercedes is all set to start the production of the new all-electric C-Class. They will be also manufacturing an all-electric model in order to set up the brand’s electrification strategy. 

In order to achieve this, there is a strong push for ‘Local-for-Local’ strategy. These components include body parts and high-quality batteries for the GLB and C-Class electric models manufactured at the facility. The production is also becoming more flexible due to shorter supply chains. 

The strategy of Kecskemet follows a dual approach. The vehicles with internal combustion engines and battery-electric models are produced in a single line in the existing hall, while the newly built hall is specifically designed for the production of fully electric vehicles. 

Thus, this close integration within the global Mercedes-Benz production helps in increasing efficiency and reliability and at the same time strengthens the responsiveness towards global market demands. The upcoming compact version of the G-Class will be produced specifically at the Kecskemet facility in future, thus reflecting the strategic importance of the site.