Mercedes-Benz Expands Manufacturing Operations in Kecskemét, Hungary
€1 billion investment to develop new models and expand production capabilities
Mercedes-Benz Manufacturing Hungary Kft.
reported a revenue of €4.2 billion and a net profit of €57.6 million for the year 2024. The company stated that the proportion of raw materials, services, and non-production investments sourced from Hungarian suppliers increased to nearly 44% compared to 2023.
In 2023, the Kecskemét plant produced 146,000 vehicles, with the two-millionth car rolling off the production line in the second half of the year.
This milestone vehicle was an all-electric EQB model.
The company is investing over €1 billion to expand its Kecskemét facility, which signals a strong commitment to this location.
The expansion will significantly increase the plant’s area by approximately 400 hectares.
Construction activities are reported to be progressing well in 2024, with new medical facilities and a fire station expected to be operational by October.
The establishment of new body and assembly shop facilities has begun, along with the comprehensive modernization of the existing painting plant.
Additionally, a new battery assembly plant has been constructed for the high-voltage batteries of the all-electric models, with equipment installation already underway.
The overall construction aims to prepare for a new manufacturing portfolio, with production of models based on the Mercedes-Benz Modular Architecture (MMA) set to commence in early 2026. That same year, production of vehicles based on the Mercedes-Benz Electric Architecture (MB.EA) platform will also begin.
The expansion is expected to create approximately 3,000 new jobs in the medium term.
In 2024, the site established conditions for constructing a solar power plant, with implementation scheduled to begin in 2025. Once completed, this facility will be one of the largest energy-producing installations in the Hungarian automotive industry, with a peak capacity of around 40 MW. The Kecskemét plant has been carbon-neutral since 2022 and aims to source over 70% of its energy needs from renewable sources by 2030.
reported a revenue of €4.2 billion and a net profit of €57.6 million for the year 2024. The company stated that the proportion of raw materials, services, and non-production investments sourced from Hungarian suppliers increased to nearly 44% compared to 2023.
In 2023, the Kecskemét plant produced 146,000 vehicles, with the two-millionth car rolling off the production line in the second half of the year.
This milestone vehicle was an all-electric EQB model.
The company is investing over €1 billion to expand its Kecskemét facility, which signals a strong commitment to this location.
The expansion will significantly increase the plant’s area by approximately 400 hectares.
Construction activities are reported to be progressing well in 2024, with new medical facilities and a fire station expected to be operational by October.
The establishment of new body and assembly shop facilities has begun, along with the comprehensive modernization of the existing painting plant.
Additionally, a new battery assembly plant has been constructed for the high-voltage batteries of the all-electric models, with equipment installation already underway.
The overall construction aims to prepare for a new manufacturing portfolio, with production of models based on the Mercedes-Benz Modular Architecture (MMA) set to commence in early 2026. That same year, production of vehicles based on the Mercedes-Benz Electric Architecture (MB.EA) platform will also begin.
The expansion is expected to create approximately 3,000 new jobs in the medium term.
In 2024, the site established conditions for constructing a solar power plant, with implementation scheduled to begin in 2025. Once completed, this facility will be one of the largest energy-producing installations in the Hungarian automotive industry, with a peak capacity of around 40 MW. The Kecskemét plant has been carbon-neutral since 2022 and aims to source over 70% of its energy needs from renewable sources by 2030.
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