Mercedes-Benz has started building its new all-electric C-Class at its Kecskemét factory in Hungary, marking a significant step in the automaker’s European EV expansion. The site has undergone a major upgrade, positioning it as a central hub for Mercedes’ next generation of electric vehicles.
Major Investment and Factory Expansion
Mercedes-Benz invested approximately $1.1B (~AUD 1.6B) to expand the Kecskemét facility, more than doubling its size from 200 hectares (~494 acres) to 440 hectares (~1,087 acres). This expansion makes it the largest automotive manufacturing site in Hungary.
The upgrades include new production halls, a battery assembly plant, a second press shop, and a new paint shop. The factory now employs over 5,000 people.
Electric C-Class Production and On-Site Manufacturing
The electric C-Class is the first battery-electric model from Mercedes’ core lineup to be produced at Kecskemét. Key components such as batteries and body parts for both the electric C-Class and electric GLB are now manufactured on-site, reducing supply chain complexity and increasing flexibility.
One of the new production halls is dedicated entirely to EVs, while other lines can switch between internal combustion and battery-electric models as needed.
Advanced Manufacturing and Sustainability Initiatives
Mercedes-Benz has implemented advanced manufacturing technologies at the Kecskemét plant, including a full digital twin of the new assembly hall created with NVIDIA’s Omniverse platform. Artificial intelligence is used for real-time defect inspection and production data analysis to enhance quality.
The factory features a new 27.4 MW solar farm and additional rooftop solar, providing a total solar capacity of 42.3 MW. This renewable energy setup is expected to supply about 25% of the plant’s annual electricity needs. The new paint shop uses around 20% less energy than before and reduces CO2 emissions by roughly 80%.
Regional Production Flexibility and Future Models
The Kecskemét plant will collaborate closely with Mercedes’ Rastatt factory in Germany, allowing the company to adjust production locations based on demand. The upcoming smaller version of the G-Class will be built exclusively at the Hungarian site.
Competitor Comparison
The new electric C-Class will compete with other premium electric sedans such as the BMW i4 and Audi Q4 e-tron. These rivals also focus on European production, advanced manufacturing, and sustainability, making the segment increasingly competitive.
Historical Context
Mercedes-Benz sold 2.4 million vehicles globally in 2024, representing a 9% year-over-year increase. The company has gradually increased its market share in Europe since 2009, gaining nearly two percentage points during that period.
Why this matters
The launch of electric C-Class production in Hungary demonstrates Mercedes-Benz’s commitment to expanding its EV lineup and modernizing its manufacturing processes. By localizing key component production and investing in renewable energy, the automaker is aiming to improve efficiency and reduce its environmental footprint.
This move also strengthens Mercedes-Benz’s position in the European EV market, where competition among premium brands is intensifying.
What this means for buyers
Buyers can expect the new electric C-Class to benefit from advanced manufacturing, improved quality control, and a focus on sustainability. With production based in Europe, regional availability should be strong, and the model is positioned to compete directly with other premium electric sedans.
Those considering a luxury EV in Europe should watch for the electric C-Class’s release, as it will offer a new alternative in the segment.
Related coverage from The Electric Viking
For more on Mercedes-Benz’s EV strategy and European production, see Mercedes-Benz’s EV Expansion in Europe: What’s Next? and How Mercedes’ New Factories Are Changing the Game.
Key Specs
- Factory Investment: $1.1B (~AUD 1.6B)
- Factory Size: 440 hectares (~1,087 acres)
- Solar Capacity: 42.3 MW
- Employees: Over 5,000
- Paint Shop Energy Reduction: 20% less than previous
- Paint Shop CO2 Reduction: 80% less than previous
- Annual Electricity from Solar: 25% of plant needs
Source
Images sourced from: autoblog.com, electrek.co, topgear.com
