Mercedes-Benz to build new compact G‑Class in Hungary

Mercedes‑Benz will produce a smaller, lower‑cost version of its G‑Class SUV at its Kecskemét plant in Hungary. The model, dubbed the “mini G”, is slated for launch in 2027 and will sit on the new MMA (Mercedes Modular Architecture) platform.

The company is investing about €1 billion to expand the Hungarian factory, boosting annual capacity to 300,000‑400,000 vehicles and increasing staff from roughly 3,000 to 7,500, creating around 3,000 new jobs. Production will include both electric and mild‑hybrid versions after the original plan for an all‑electric model was adjusted due to reduced U.S. tax incentives. Shifting manufacturing from Germany to Hungary is intended to cut costs and keep the new SUV competitively priced.