Mercedes-Benz Group AG: Postcard from Hungary: Some genuine positives/opportunities - but also facing market realities

Research evidence excerpt

Mercedes-Benz Group AG: Postcard from Hungary: Some genuine positives/opportunities - but also facing market realities

Equity Research

European Autos & Auto Parts

14 July 2026

Mercedes-Benz Group AG

Postcard from Hungary: Some

genuine positives/opportunities -

MBGn.DE/MBG GY EQUAL WEIGHTbut also facing market realities

European Autos & Auto NEGATIVE

MBG hosted an analyst and investor event in Hungary on the Parts Price Target EUR 55.00

occasion of its plant extension opening. Highlights included Price (13-Jul-26) EUR 44.29

CEO/CFO discussions, BEV C-Class test, rightsizing/efficiency Potential Upside/Downside +24.2% Source: Bloomberg, Barclays Research

updates and automation/AI/humanoid updates. Lowlight

remains persistent China weakness. European Autos & Auto Parts

Henning Cosman

+44 (0)20 3134 3106

We attended an MBG analyst and investor event on Sunday and Monday with top henning.cosman@barclays.com

management on the occasion of the opening of its plant extension to 400,000 units from Barclays, UK

200,000 units in Kecskemet (Hungary). The event was attended by high-profile Hungarian

Erwann Dagornepoliticians including Prime Minister Peter Magyar and MBG top management including the CEO

+33 (0)1 4458 3664

and CFO. MBG had already said in February that its factor costs in Hungary are 70% lower than erwann.dagorne@barclays.com

in Germany. As such, ‘going East’ continues to represent a significant pillar in MBG’s cost saving BBI, Paris

and efficiency strategy for Europe, with c40% of its EU production coming from Kecskemet

Wei Jiaeventually. MBG has reduced production cost by 10% from 2022 to 2024 and confirm that it

+44 (0)20 3555 6740

remains on track to reduce a further 10% by 2027. If anything, cost savings efforts are being wei.jia@barclays.com