Mercedes Starts Electric C-Class Production in Hungary
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- Mercedes-Benz kicked off production of its all-electric C-Class at the Kecskemét, Hungary factory — the first battery-electric model from its core lineup to be built there.
- Mercedes invested roughly €1 billion expanding Kecskemét, which grew from 200 to 440 hectares to become Hungary's largest automotive manufacturing site, now employing more than 5,000 people.
- One new production hall at Kecskemét is dedicated entirely to EVs while existing lines can switch between ICE and battery-electric models, reflecting Mercedes' hedge against fully committing to electric.
- Mercedes built a digital twin of the new assembly hall on NVIDIA's Omniverse platform, using AI to simulate production changes and inspect vehicles for defects in real time.
- The site runs a 42.3 MW solar array (including a new 27.4 MW farm) supplying about 25% of annual electricity, while the new paint shop uses roughly 20% less energy and cuts CO2 emissions by about 80%.
- The smaller G-Class will be built exclusively in Kecskemét, and the plant will coordinate with Mercedes' Rastatt, Germany factory to flex production of the electric GLC based on demand.
Why it matters: Mercedes' €1 billion Hungarian bet signals a pragmatic EV ramp — building core-lineup EVs in Europe while keeping ICE lines switchable hedges against uncertain demand. Exclusive build rights for the smaller G-Class plus flex coordination with Rastatt give Mercedes the ability to shift electric output between Hungary and Germany wherever demand runs hottest.
