Mercedes is moving the production of the current generation of A-Class from Germany to Hungary in order to improve manufacturing efficiency.
After the Mercedes A-Class had been on the list of models that Mercedes intended to discontinue, alongside the B-Class, Mercedes CEO Ola Källenius announced at the Munich Motor Show in September 2025 that production of the current generation would continue until 2028.
Now, the German manufacturer has announced that it will move A-Class production from the Rastatt plant in Germany to the Kecskemét plant in Hungary in the second quarter of 2026. The two factories currently work in tandem on the production of entry-level Mercedes models from both the previous and the current generations.
At the Rastatt plant, which has been modernized for the new generation of compact-class models based on the MMA platform, production includes the third generation Mercedes CLA from mid-2025, the second-generation CLA Shooting Brake from the end of 2025, as well as the previous-generation GLA and EQA.
New models manufactured in Rastatt
Mercedes has moved A-Class production to Hungary to make room at Rastatt for production of the newly launched Mercedes GLB, as well as the future GLA in both electric and mild-hybrid internal-combustion versions, which is set to debut toward the end of 2026.
Relocating production to Hungary will likely improve efficiency, as labor costs are lower in Hungary than in Germany.
The current generation Mercedes A-Class (W177) was unveiled in April 2018 and received a facelift at the end of 2022. It is available with gasoline, diesel, plug-in hybrid, and sporty AMG powertrains (AMG A 35 4MATIC mild hybrid with 306 PS and AMG A 45 with 421 PS).
Hungary has been an attractive location for automotive manufacturers for many years. Audi operates the world’s largest engine plant in Győr, BMW has opened a plant in Debrecen where it produces the new BMW iX3, and BYD has begun construction of a factory to produce electric models for the European market in order to avoid the high customs duties imposed on electric cars imported from China into Europe.
