Mercedes-Benz working on an entry-level car to replace A-Class

**Mercedes-Benz Developing New Entry-Level Model to Succeed A-Class**

*By Dwaipayan Roy | Sep 24, 2025, 01:35 PM*

Mercedes-Benz is gearing up to introduce a new entry-level vehicle as part of a strategic move to boost sales volume. This announcement comes following the decision to extend the life cycle of the current A-Class hatchback and sedan models by an additional two years, keeping them in production until 2028. This extension underscores the challenges automakers face in accurately predicting customer preferences and market trends.

### Shift in Strategy: Embracing Hybrids Alongside Combustion Engines

Previously, Mercedes-Benz had committed to a fully electric lineup by 2030, where market conditions permitted. However, their updated approach now incorporates a continued focus on combustion engines, which are expected to remain relevant well into the next decade and possibly beyond. This evolved strategy also includes the development of a new entry-level vehicle aimed at filling a noticeable price gap within their product range.

### Filling the Pricing Gap Between A-Class and Electric CLA

The upcoming entry-level model is designed to bridge the price divide between the existing A-Class and the forthcoming electric CLA. In Germany, the A-Class currently starts at approximately €34,400. Although the combustion-powered CLA offers a price point lower than its electric counterpart, it remains pricier than the A-Class, leaving a significant gap in Mercedes-Benz’s entry-level market segment. When the A-Class is eventually phased out, the brand’s base model pricing is expected to start from the mid-€40,000 range.

### Official Confirmation from Mercedes-Benz Leadership

Mathias Geisen, member of the management board for marketing and sales at Mercedes-Benz, has officially confirmed that the new entry-level car is under development. He assured customers and enthusiasts alike, stating, “Believe me: in the long term, there will be an entry-level model in the Mercedes-Benz world.”

### Balancing Volume and Profitability in the Premium Segment

While producing a cheaper model may not yield the same profit margins as Mercedes’ higher-segment vehicles, increasing sales volume is a crucial strategy to maintain overall financial health. This approach is echoed by other premium manufacturers such as BMW and Audi, which continue to offer more affordable models to attract a broader customer base. The launch of the new entry-level model makes particular sense given the substantial price gap emerging between the A-Class and the new electric CLA.

### Design and Features: What to Expect

Details regarding the design and feature set of Mercedes-Benz’s upcoming entry-level model remain under wraps. Industry publication Automobilwoche speculates that the new vehicle could adopt a crossover form factor. However, many enthusiasts hope for a more traditional approach, such as a CLA hatchback or a similar design, rather than another SUV variant.

For now, the current A-Class—available as both a five-door hatchback and a four-door sedan—will continue serving global markets until the new model arrives.

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Stay tuned for more updates as Mercedes-Benz progresses with its exciting new entry-level offering.
https://www.newsbytesapp.com/news/auto/mercedes-benz-to-develop-new-entry-level-model-ditching-ev-only-strategy/story

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