Mercedes Aims to Launch More Affordable SUV to Take the Place of the A-Class | Carscoops

      A new compact SUV is set to be introduced to compete with premium rivals and will take the place of one of the most popular Mercedes models.

      Mercedes is currently developing a new entry-level model built on the MMA platform.

      This model will succeed the existing A-Class, which will remain in production until 2028.

      The new vehicle is expected to feature an SUV design and be priced lower than the CLA.

      Mercedes' strategy for compact cars has taken another unexpected turn, illustrating that long-term plans in Stuttgart rarely remain unchanged for long. The new CLA was initially meant to be the entry-level model after the A-Class was set to be phased out. However, those plans have shifted, as the automaker has confirmed the creation of a new compact entry. This unnamed vehicle will fill the gap below the CLA and replace the A-Class when it ceases production in 2028.

      Originally, the plan was for Mercedes to streamline its small car range, positioning the CLA as the brand’s entry model. Built on the new MMA platform, it brought fresh styling, advanced technology, and a prototype for upcoming GLA and GLB SUVs.

      Pursuing Volume Over Exclusivity

      Nevertheless, Mercedes has recently opted to pivot from its traditional luxury focus, even eliminating the term “luxury” from its official strategy. CEO Ola Källenius indicated a shift towards broader appeal and increased production volumes, following a drop in profits to a mere 5.3 percent margin in the first half of the year. With insiders attributing this decline to an overemphasis on expensive Maybach and AMG models, Mercedes is gearing up for a significant product roll-out featuring more accessible compact cars and SUVs.

      At the same time, robust demand in Europe has led the brand to continue offering the current A-Class hatchback and sedan until 2028. However, even this extension may not suffice, as Mercedes now suggests a new entry-level model to satisfy the growing customer demand for smaller, more affordable cars.

      Mathias Geisen, a member of the Mercedes Board of Management overseeing Marketing & Sales, commented to Automobilwoche about the forthcoming model: “We will be launching more models based on our new MMA architecture after the CLA. Let me assure you: In the long term, there will be an entry-level model within the world of Mercedes-Benz.”

      Compact Reinforcements

      Geisen acknowledged the significant interest in the A-Class, describing it as a “highly relevant vehicle” for Mercedes that helps “engage many of our customers with our brand early on.” He mentioned the extension of production to “prevent a supply gap,” suggesting that the new entry-level model could be available by 2028.

      Details remain limited, with neither the name nor the design confirmed, and powertrain options still undisclosed. German reports suggest that the new model might be a modified and cost-effective version of an existing SUV rather than an entirely new series. This could imply a revamped GLA or a slightly smaller crossover, but Mercedes is keeping specific details under wraps for now.

      Competitively Priced

      Regardless, the new Mercedes crossover is anticipated to be attractively priced, responding to requests from German dealers. The current A-Class starts at €34,252 ($40,400) in Germany. In contrast, the fully electric CLA begins at €53,066 ($62,527), making it more expensive than the C-Class sedan priced at €42,265 ($49,800). A more affordable hybrid CLA is expected to arrive soon to bridge this gap.

      The figures highlight the significance of this entry-level segment. Mercedes’ compact lineup sold 534,800 units in 2024, accounting for a substantial portion of its overall 1,983,000 passenger car sales. In Germany alone, the A-Class represented 17,400 out of 257,900 new Mercedes registrations last year. This consumer interest is likely what prompted Stuttgart to reconsider its strategy and maintain a presence in the lower market segment.

      Farewell to the B-Class

      While the A-Class continues, the B-Class is approaching its conclusion. Sales of the compact MPV have been steadily declining, and production is slated to end in 2026 after a 22-year, three-generation run.

      Referring to upcoming releases, Geisen noted, “We are launching over 40 new models in the next two years. We have never had such an extensive product offensive. Our vehicles will set new benchmarks in their classes.” Mercedes has recently unveiled the new GLC EV, providing a zero-emission alternative to the GLC and a direct competitor to the newly introduced BMW iX3 Neue Klasse.