Mercedes Targets the Affordable EV Market with a New Entry-Level Electric Car

Mercedes-Benz plans a new electric A-Class with updated design, 800V tech, and multiple powertrains, targeting the growing affordable luxury EV segment.

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Mercedes Targets the Affordable EV Market with a New Entry-Level Electric Car - © Mercedes-Benz

The announcement comes as several premium automakers accelerate their push into more accessible electric vehicles. Brands such as Audi, BMW, Rivian, and Lucid are all preparing models aimed at lower price points within the EV market.

Mercedes had initially planned to phase out the A-Class in favor of higher-margin vehicles, but shifting market conditions led the company to extend its lifecycle. Production is now expected to continue until at least 2028, when a new generation, offered in both electric and hybrid versions, will be introduced.

A Familiar Design Adapted for Electrification

The upcoming electric A-Class will retain its hatchback silhouette rather than transitioning into a crossover format. According to Autocar, insider sources indicate that Mercedes aims to “evolve” the current design rather than replace it entirely, keeping a traditional shape with more modern detailing.

The model will sit slightly higher than the current A-Class, a change driven by the need to accommodate the battery pack beneath the floor. Sources emphasized that the vehicle will not be repositioned as a crossover, noting that models like the GLA and GLB already serve customers seeking a higher driving position.

Design updates are expected to align with newer Mercedes models such as the CLA and GLB, including a revised front end and grille treatment.

Mercedes-Benz A-Class – © Mercedes-Benz

New Platform, Powertrains, and Interior Layout

The electric A-Class will be built on Mercedes’ MMA platform, the same architecture underpinning the upcoming CLA EV. According to Electrek, this platform supports both electric and hybrid configurations, and all variants of the next-generation A-Class will feature a higher ride height for design consistency.

Inside, the vehicle will offer a five-seat layout, with the possibility of a rear sliding bench similar to what is planned for the Kia EV2. The model may also adopt the name CSA, short for compact sport A-Class, though this has not been officially confirmed.

Powertrain configurations will vary depending on the version. The electric model will feature rear-wheel drive as standard, while hybrid or gasoline variants will use front-wheel drive. All versions will offer all-wheel drive as an option.

Kia EV2 – © Kia

Battery Options and Growing Competition in the Segment

Mercedes plans to equip the A-Class EV with an 800V electrical architecture, aligning it with the new CLA EV. Two battery options are expected: a 58 kWh lithium-iron phosphate pack and an 85 kWh nickel-manganese-cobalt unit.

A high-performance AMG version is also in development, with output potentially reaching up to 500 horsepower.

Audi A2 E-Tron Teaser -© Audi

This model enters a rapidly evolving segment. Audi is preparing the A2 e-tron, expected to debut in the fall, while Rivian and Lucid are targeting late 2026 for their midsize electric vehicles. The Audi A2 e-tron could start below £30,000 (around $40,000), suggesting that Mercedes may position the A-Class EV in a similar price range.

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