Mercedes expands Kecskemét plant into Europe's largest Mercedes factory
On 13 July 2026 Hungarian Prime Minister Peter Magyar and Economy Minister István Kapitány attended the hand‑over of a new production unit at the Mercedes‑Benz Manufacturing Hungary plant in Kecskemét. The €1 billion expansion adds two new body‑shop and assembly halls, a second press line, a high‑tech paint shop and a battery‑assembly line, allowing the site to start series production of the electric Mercedes‑C class.
The investment doubles the plant’s capacity, raising annual output from more than 100 000 to a target of 350 000–400 000 vehicles and expanding the workforce from about 5 000 to 9‑10 000 employees. With the new unit the Kecskemét facility becomes Europe’s largest Mercedes plant and the second‑largest in the world. Mercedes‑Benz Group CEO Ola Källenius and other senior managers were present.
The ceremony was marked by political debate: social‑media users criticized the current government for claiming credit for a project begun under the previous administration, and Kecskemét’s mayor Klaudia Pataki Szemereyné said she had respected the prime minister’s request to stay away from the event. The expansion is part of a broader strategy to shift more production to lower‑cost European locations.