Mercedes plans to expand operations at its plant in Kecskemét, Hungary, by increasing production capacity and hiring thousands of new employees.
Opened in 2012, the Mercedes plant had 4,500 employees at the end of December 2025. The factory produces models from the compact range, and in its 14 years of operation it has produced more than 2 million vehicles. In 2024, the plant produced 146,000 vehicles, generating €4.17 billion in revenue.
In 2025, production of the third-generation Mercedes CLA (electric and mild hybrid) began in Kecskemét. The model is based on the new MMA multi-powertrain platform. Starting in January 2026, the plant also began producing the second model based on the new MMA architecture – the new Mercedes GLB.
At the beginning of 2026, Mercedes also announced that it will move production of the current generation Mercedes A-Class from Rastatt to Kecskemét. Until autumn 2025, the future of the A-Class had been uncertain. At the Munich Motor Show in autumn 2025, Mercedes CEO Ola Källenius announced that production of the current A-Class generation would be extended until 2028, instead of ending in 2026 as previously planned.
Only a few weeks later, Källenius also stated that the A-Class will have a successor after 2028.
The big surprise is that the Kecskemét plant will not produce only the new generation of compact models. Starting in summer 2026, it will also produce the Mercedes C-Class EQ, which is not built on the MMA platform, but on the more complex electric dedicated platform, MB.EA platform, also used for the GLC EQ.
The Mercedes plant in Kecskemét is a modern facility, and the company plans that more than 70% of the energy used there will come from renewable sources by 2030, thanks to planned investments in expanding photovoltaic systems.
On the occasion of the 140th anniversary of the invention of the automobile, Mercedes organized an event at the Kecskemét plant attended by Hungarian Prime Minister Viktor Orbán. During the event, Jens Bühler, Managing Director of Mercedes-Benz Manufacturing Hungary, presented the company’s expansion plans.
The planned investments exceed €1 billion and include the construction of new buildings for body construction and assembly, as well as a battery assembly plant. These investments will double production capacity from 150,000 to 300,000 vehicles per year.
Mercedes will also invest €55 million in a new research and development center, which will cooperate with universities in Hungary.
