Mercedes Announces Plans to Build Hungary’s Largest Car Factory

Péter Szijjártó and Mercedes team principal Toto Wolff at the 40th Hungarian Grand Prix on 3 August 2025
Ministry of Foreign Affairs and Trade (KKM)
Mercedes will establish Hungary’s largest car factory in Kecskemét, with production of next-generation models starting early next year. The investment secures Hungary a strategic position in Europe’s automotive and battery manufacturing scene.

At the 40th Hungarian Grand Prix in Mogyoród, Foreign Minister Péter Szijjártó announced that Mercedes will create Hungary’s largest car manufacturing plant in Kecskemét. Speaking at the Hungaroring, Szijjártó revealed that the German automaker’s investment is progressing well and the production of entirely new Mercedes models using cutting-edge technology is expected to begin in the first quarter of next year.

‘This investment will make the Mercedes plant in Kecskemét Hungary’s largest car factory,’ the minister stated. With an annual capacity of 300,000 vehicles, the country’s total automotive output will reach one million units per year, placing Hungary in a select group of European manufacturing nations.

Szijjártó emphasized the exclusivity of the development, noting that Kecskemét will be the only location in Europe where a Mercedes vehicle assembly plant operates directly alongside a battery manufacturing facility. ‘Mercedes has similar setups only in the US and China. In Europe, this is unique, and it gives both Hungary and the company a very special status,’ he said.

The announcement comes at a time of global economic uncertainty. Szijjártó praised the long-standing, mutually respectful partnership between Hungary and Mercedes, which he said now plays an even more critical role.

‘In this challenging environment, we’re working with Mercedes and our other strategic partners to turn global economic difficulties to Hungary’s advantage,’ he said. He also took aim at EU leadership, referencing ‘the difficult situation created by the incompetence of Ursula von der Leyen and the European Commission.’

Still, the minister expressed confidence that Hungary will emerge stronger, as it has in past crises. ‘Our aim is to ensure that, like before, Hungary comes out of this situation as a winner,’ he concluded.


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Mercedes will establish Hungary’s largest car factory in Kecskemét, with production of next-generation models starting early next year. The investment secures Hungary a strategic position in Europe’s automotive and battery manufacturing scene.

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