Yahoo Autos Mercedes-Benz Is Planning an Electric CLA SUV to Fight Tesla: Report
Mercedes-Benz is set to revamp up its EV output next year, following up on its early EQ electrified model lineup. According to reports by Automotive News, an all-new electric version of the brand's CLA-Class four-door coupe will arrive in the U.S. late next year, with a crossover variant allegedly following in early 2026.
Specifically, according to Automotive News, four entry-level EVs are on the way, all riding on Mercedes-Benz's new Modular Architecture platform: a coupe, a wagon, and two crossovers. The alleged EV CLA-Class crossover — reportedly code-named X174, according to AutoForecast Solutions — is expected to replace Mercedes-Benz's most diminutive EV currently available, the EQB.
Functioning as the entry-level vehicle for Mercedes, the CLA nameplate is responsible for bringing in a significant number of new buyers to the brand, with one dealer telling Automotive News that over half of CLA-Class buyers haven't owned a Mercedes before. For that reason alone, expanding the badge into the fast-growing compact electric crossover market could bring in a slew of conquest customers.
"Providing more choices in sporty and lower-priced crossovers gives younger buyers more of a reason to shift to the brand where the more family-friendly utilities will keep them engaged for years to follow," AutoForecast Solutions vice president Sam Fiorani said to Automotive News.
Mercedes declined to comment on future product plans, meaning no official specifications exist, but we can estimate range and powertrain figures from previous teasers of the electrified CLA lineup. A concept version of the EV CLA Coupe shown at the Munich Auto Show last year boasted a 235-horsepower electric motor paired to a two-speed transmission, an 800-volt electrical system, and a claimed 466 miles of range.
In order to woo new buyers, however, Mercedes will have to find a way to be more affordable, Edmunds analyst Ivan Drury said to Automotive News. With an average transaction price of $76,195 in the second quarter of 2024, the German brand is reportedly looking for a way to slash that number in favor of increased sales. While vehicles priced under $60,000 make up only a third of Mercedes sales, 47 percent of its luxury competitors' sales happen under the $60,000 mark. Notably, taking on Tesla's ever-popular Model Y crossover, which can be bought at the lowcend for $44,990, will require some aggressive pricing and competitive range figures.
"The tremendous leap in average transaction price is double-edged — selling at the upper echelons brings more prestige to the brand, but it's in danger of flying too high and getting burnt by unaffordability," Drury said to Automotive News.
This new line of electrified models will reportedly be produced in three separate facilities. While some production will stay close to home in Rastatt, Germany, facilities in Kecskemet, Hungary, and Beijing, China, will also be responsible for broader global manufacturing.
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