Mercedes-Benz has officially kicked off production of its upcoming all-electric C-Class at its factory in Kecskemét, Hungary, as the automaker expands EV production in Europe ahead of a wave of new electric models.
To make that happen, Mercedes has spent around €1 billion expanding the site, adding new production halls, a battery assembly plant, a second press shop, and a new paint shop. The factory has more than doubled in size, growing from 200 to 440 hectares, making it the largest automotive manufacturing site in Hungary.
The electric C-Class is the first battery-electric model from Mercedes’ core lineup to roll off the production lines in Kecskemét, and the company says the plant will play a major role in its next generation of EVs.
One thing Mercedes is trying to avoid is shipping major components around the world. Batteries, body parts, and other key components for the electric C-Class and electric GLB are now being built on-site, which shortens supply chains and gives the automaker more flexibility if demand changes.
Like many legacy automakers, Mercedes is still hedging on going fully EV. One of the new production halls is dedicated entirely to EVs, while existing lines can switch between ICE and battery-electric models.
The Hungarian plant will also work closely with Mercedes’ factory in Rastatt, Germany, giving the company the flexibility to build vehicles such as the upcoming electric GLC wherever demand is strongest. Mercedes also confirmed that the smaller version of the G-Class that’s on the way will be built exclusively in Kecskemét.
Mercedes is also using the factory to test some of its most advanced manufacturing technology.
The company has created a full digital copy of the new assembly hall using NVIDIA’s Omniverse platform, allowing engineers to simulate production changes before making them on the factory floor. AI is also helping inspect vehicles for defects in real time and analyze production data to improve quality.
Mercedes is also leaning into renewable energy at the site. A new 27.4 MW solar farm, along with rooftop solar, gives the factory a total solar capacity of 42.3 MW. The automaker says that it will supply around 25% of the plant’s annual electricity needs.
Meanwhile, the new paint shop uses around 20% less energy than the previous facility and cuts CO2 emissions by roughly 80%, according to the company. It’s also added water-saving and waste-reduction measures across the site.
The Kecskemét plant now employs more than 5,000 people and is becoming one of Mercedes-Benz’s key EV production hubs.
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