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Mercedes-Benz Inaugurates Factory Expansion in Hungary

D&T
July 13, 2026

German car maker Mercedes-Benz inaugurated an expansion at its manufacturing base in Kecskemét (C Hungary) this Monday to accommodate production of the electric C-Class model.

Prime Minister Péter Magyar drove an electric model with Mercedes-Benz Group chairman Ola Kallenius to the site of the ceremony.

On the way, Péter Magyar said the aim was to raise production at the base in Kecskemét from over 100,000 cars a year to as many as 350,000, while headcount could climb from 5,000 to 9,000-10,000. With the inauguration of the new manufacturing capacity, the base will become Mercedes-Benz's largest in Europe and the second biggest in the world, he added.

In a speech at the ceremony, the prime minister said Hungary's new government aimed to maintain a "predictable" partnership with Mercedes-Benz, as well as any other companies that wanted to invest in Hungary. Hungary is prepared to offer a predictable environment for doing business, a competitive tax system, good infrastructure and a well-trained labour force to stay an attractive target for investment, he stated.

Péter Magyar said the government expected businesses to abide by the rules and give Hungarian workers the respect they deserve. Blue collar workers deserve fair wages, a safe workplace and time off, just as do top managers, he added.

He was of the view that the expansion in Kecskemét paved the way for an enhanced role by local businesses in the supply chain.

The EUR 1 billion expansion will double capacity at the base.

D&T

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