The Mercedes-Benz A-Class is ready to be produced effectively into 2026, plans to retire the fourth-generation hatchback as quickly as this yr having been cancelled.

News of the transfer comes after Mercedes-Benz confirmed it was abandoning its EV-only stance in favour of what its CEO Ola Källenius describes as a extra “flexible” mannequin technique, below which it can continue to produce ICE models primarily based on current platforms effectively into the subsequent decade.

The agency had been making ready to make its line-up totally electrical by 2030, as a part of a so-called “electric first” technique. However, Källenius has now revealed that its newest research venture PHEVs and EVs will possible make up simply half of its international gross sales by then.

“I don’t think anyone had ever thought that the once-in-a-century transformation of the auto industry will be a straight line. There will be peaks and troughs,” he stated.

Källenius pointed to the continuing worth disparity as one motive for the slower-than-expected take-up of EVs, suggesting they are going to stay dearer than their ICE equivalents for a while.

According to Mercedes’ research, demand for EVs will primarily be within the small and medium automobile segments.

Cost parity between EVs and ICE automobiles “is many years away”, Källenius stated. “You can see that in the pricing.”

In preparation for the continuation of A-Class manufacturing, Mercedes has altered its Rastatt manufacturing plant in Germany to allow it to provide automobiles atop the MFA compact automobile platform and its electric-biased MMA successor. 

The MMA platform has been conceived as a hybrid construction able to accommodating ICE, PHEV and EV drivetrains.

It will first be used for the third-generation CLA compact saloon, the primary prototype for which was accomplished in September final yr, Autocar has realized.