Camilla Jessen
Mercedes relocates A-Class in 2026.
Mercedes-Benz is making a major change to its European manufacturing footprint.
The company will move production of the A-Class out of Germany and into Hungary from the second quarter of 2026. The compact hatchback, long built in Germany, will no longer be produced at the Rastatt plant.
Instead, manufacturing will be concentrated at Mercedes’ factory in Kecskemét, Hungary. Management says the shift is necessary to free up capacity in Germany for future models.
The A-Class had previously been expected to be discontinued, but Mercedes has now extended its lifespan until 2028.
Electric focus at home
The main reason for the relocation is electrification. The Rastatt factory is being prepared to focus exclusively on electric vehicles, starting with the new electric CLA.
According to Automobilwoche, Mercedes needs additional production space for models based on the new MMA platform. This architecture will underpin the brand’s next generation of premium electric cars.
By moving combustion-engine production abroad, Mercedes can modernise its German plants without disrupting electric vehicle output.
Why Hungary
The Kecskemét factory offers significantly lower labour and operating costs than Germany. Under the new plan, the Hungarian site is expected to produce up to 400,000 vehicles per year.
The A-Class will continue largely unchanged in design and engine options, despite the relocation. Mercedes has opted to keep familiar petrol technology alive while demand still exists.
Company sources say the move is about efficiency rather than abandoning the model.
Sources: Automobilwoche, Boosted
