Mercedes will continue to produce its cheapest gasoline car because electric cars are still very expensive

by alex

The life cycle of the Mercedes A-Class has been extended by a couple of years

Mercedes A-Class was supposed to retire in 2024, but now its life cycle has been extended until 2026. The compact hatchback is the most affordable Mercedes in the lineup, its price in Europe starts from 37,400 euros.

CEO Ola Källenius admitted that price parity between cars with internal combustion engines and pure electric models is still “many years away.” The executive also noted that customers can see this in the price difference between cars with internal combustion engines and electric vehicles.

Mercedes is working on a new family of compact cars that will also be powered by internal combustion engines. The CLA, CLA Shooting Brake, GLA and GLB will be replaced on the newly developed MMA platform, which will support both petrol engines and all-electric powertrains. The company did not say a word about whether the A-class hatchback, A-class sedan and B-class minivan will be updated.

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Mercedes believes that by 2030, hybrids and plug-in electric vehicles will account for up to 50% of total deliveries. That's a big change from a forecast a couple of years ago, when the firm said it would go all-electric in some markets by the end of the decade.

The company now aims to continue producing gasoline-powered vehicles into the 2030s in response to weaker-than-expected adoption of electric vehicles. In a document prepared for investors, the Stuttgart-based automaker says it is “taking the necessary steps to transition to an all-electric vehicle” but admits that “customers and market conditions will determine the pace of transformation.”

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