Autocar reports that the entry-level Mercedes-Benz A-Class has been granted an extension, with company executives opting to continue its production until 2026.
Initially slated for discontinuation in the United States earlier this year to make room for new battery-electric models, the decision to retain the A-Class comes amid Mercedes-Benz’s reassessment of its electric vehicle (EV) strategy, prompted by shifting market demands.
Previously committed to becoming an all-electric brand by 2030, with 50% of global sales derived from plug-in hybrids (PHEVs) and EVs by next year, Mercedes now aims to expedite this transition, targeting achievement between 2025 and 2030.
CEO Ola Kallenius emphasized that customer preferences and market dynamics will dictate the pace of this transformation, foreseeing a period of fluctuations during this transitional phase.
The decision to preserve the A-Class reflects Mercedes-Benz’s acknowledgment of robust demand for electric vehicles in the entry- to mid-level segments.
Despite the traction gained by EVs, a significant portion of consumers remain hesitant to fully embrace battery-electric cars. Thus, retaining offerings like the A-Class becomes crucial for sustaining customer engagement and preserving profit margins.
Notably, Mercedes-Benz faces the challenge of affordability in the EV market, with its most accessible electric offering, the EQB SUV, starting at a substantial $52,750. To incentivize broader EV adoption, the automaker must develop more economically accessible options akin to the base GLA-Class, priced at $41,850.
However, Kallenius underscored the persistent disparity in cost between EVs and internal combustion engine (ICE) vehicles, a challenge confronting the entire automotive industry.
The A-Class’s continued production will coincide with Mercedes-Benz’s preparations at the Rastatt assembly plant, adapting it for manufacturing vehicles based on both the MFA and MMA platforms.
While the MFA platform currently underpins models like the A-Class, GLA, and EQB, the forthcoming MMA platform is positioned as its successor, promising versatility to accommodate electric, plug-in hybrid, and combustion drivetrains.
Expected to debut with the third-generation CLA four-door coupe in 2024, the MMA platform heralds a new era for Mercedes-Benz, offering electrification alongside traditional powertrains.
Also read: Mercedes-AMG Introduces the 2025 E 53 Hybrid: Blending Performance And Eco-Friendliness