Electrifying growth: Mercedes-Benz Kecskemét’s billion-euro bet on EVs

In total, Mercedes-Benz paid approximately 43.2 million euros in taxes and contributions to the Hungarian state and the city of Kecskemét

The Mercedes-Benz manufacturing plant in Kecskemét rolled out a total of 146,000 vehicles last year, according to the company’s annual business report. Notably, in H2 2024, celebrated the production of its two-millionth vehicle – a fully electric EQB model.

Despite these advancements, the company reported a 17.8% decrease in revenue, down to 4.2 billion euros compared to the previous year. This decline was primarily attributed to reduced export sales. Operating profit still experienced a significant drop of 22.9%.

Kecskemét Mercedes-Benz is expanding and restructuring its production portfolio

The factory’s footprint will expand significantly by approximately 400 hectares. Throughout 2024, construction efforts advanced strongly and on schedule. In October, a new occupational health clinic and fire station were commissioned.

Installation and commissioning of production lines began in the new body shop and assembly halls, while the existing paint shop underwent comprehensive modernization. Additionally, a new battery assembly building was completed for the final assembly of high-voltage batteries used in fully electric models, with equipment installation underway.

Later in the year, production of fully electric models based on the MB.EA platform (Mercedes-Benz Electric Architecture) commenced, with approximately 3,000 new jobs expected to be created in the medium term.

The plant also established conditions for constructing a solar power park during 2024, with implementation scheduled to start in 2025. Upon completion, this facility will be among the largest energy-producing solar installations in the Hungarian automotive industry, boasting a peak capacity of roughly 40 MW.

Since 2022, the Kecskemét plant has operated as carbon-neutral on a balance sheet basis and aims to cover more than 70% of its energy needs with renewable sources by 2030. Globally, the Mercedes-Benz Group targets exclusively renewable energy use in production by 2039.

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