Mercedes-Benz, one of the world’s leading luxury car manufacturers, is gearing up to unveil its new compact family, known as “Entry Luxury,” by the end of 2023. The company plans to launch four models on its new MMA architecture, which can support both electric and combustion engines. The upcoming compact cars are expected to have premium features, with high-end materials and state-of-the-art technology, including the new Mercedes-Benz Operating System (MB.OS).
Despite shifting its focus towards high-end, more profitable models, Mercedes-Benz CEO Ola Kallenius has affirmed the company’s commitment to smaller cars. However, he emphasized that the company will concentrate on the models that have been the most successful globally. As part of its restructuring plan, Mercedes-Benz aims to reduce the number of compact models from seven to four, which would allow the company to increase profit margins.
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According to recent reports, the CLA, GLA/EQA, GLB/EQB, and a new rugged-looking SUV, nicknamed the “baby G-Class,” are the models that are most likely to survive in the new era. In line with this, the A-Class and B-Class are expected to be discontinued after 2025.
The new MMA architecture was designed primarily for electric powertrains, but it is also compatible with combustion engines, enabling Mercedes-Benz to offer hybrid options for its models alongside electric vehicles. The company is expected to move towards pure electric vehicles in the coming years, but ICEs will still have relevance in Europe for a while.
Mercedes-Benz’s compact models accounted for 29% of the overall sales of the Mercedes-Benz Group in 2022, with 595,916 units sold. However, the company predicts that sales of the “Entry Luxury” models will account for a smaller percentage of overall sales by 2026 as the focus shifts towards profitability.
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While Mercedes-Benz is excited about its upcoming “Entry Luxury” models, the current compact lineup will receive mid-cycle facelifts in 2023. The updated A-Class and CLA models have already been unveiled, and the B-Class, GLA, and GLB models are expected to follow in the next few months.
The first model from the “Entry Luxury” lineup is expected to be a sleek four-door sedan, with production slated to begin in 2024. As the automotive industry continues to evolve, Mercedes-Benz is poised to remain at the forefront, delivering exceptional luxury vehicles that cater to the ever-changing needs of customers worldwide.
