Mercedes fear "difficult" Hungarian Grand Prix

Mercedes are aware that Ferrari are set to improve their performance in the next race this weekend and admit they could struggle this weekend.

A dramatic victory for Lewis Hamilton last weekend ensured Mercedes took control of both of the championships.

Ferrari looked in control in Hockenheim, but rather fortuitously for the Silver Arrows, Sebastian Vettel crashed out of the German Grand Prix - leaving the chance to Hamilton.

Mercedes boss Toto Wolff was keen to stress that his team should try to stay level-headed about proceedings and try to not get carried away.

"Even though we have taken the lead back in both championships, I still think Ferrari has a very strong package at the moment and they will be the enemy and the competitor to beat," Wolff told Sky Sports F1.

Wolff confirmed that Ferrari were gaining 0.5s on the straights in Germany following their latest tweak to their engine power.

"This is a very difficult championship with a competitor that is going from strength to strength," Wolff added.

As F1 goes to Budapest this weekend - it's a track that's predominantly full of twists and turns and doesn't focus too much on straight line speed.

Ferrari seem to be excelling in both areas at the moment, whereas Mercedes have always been a power-dominant team in recent years.

"Budapest was always a difficult one for us," Wolff added.