Mercedes-Benz to reveal new compact luxury models in late 2023

Mercedes-Benz is readying a slew of updated compact luxury models that are expected to break cover sometime later this year. The German luxury car brand's XCEO Ola Kallenius has hinted that the company will have a streamlined product lineup and under this product strategy, it will have fewer models in the entry-level luxury segment, claims a report by Automotive News.

The German automaker is ready to start production of a CLA-like compact sedan in 2024, which will be a key product under this strategy. This upcoming model will be one of the four members of the Entry Luxury class, as the automaker aims to axe three of its current compact models. This model will be based on the new Mercedes Modular Architecture (MMA), which will be electric first but not an electric-only platform. The car brand is likely to axe the A-Class hatchback, A-Class sedan and B-Class minivan from the lineup. This will leave only the CLA, CLA Shooting Brake, GLA and GLB in the segment.

Speaking about the future prospect of compact luxury cars in the brand's product lineup, Mercedes-Benz CEO said that the company will focus on the models that it believes are the most successful on a worldwide basis. "The short answer is yes. But we will focus on the models that we believe are the most successful on a worldwide basis. We might later this year even tease what that future would look like," he added.

The report claims that the new wave of compact cars would come with higher prices, while at the same time, they will come elevating the technological substance. The technological upgradation includes a new MB.OS software architecture and adopting innovations from the Vision EQXX project. The automaker also claims to have revealed that while it will be committed to compact cars, 75 per cent of its total future investments are reserved for larger models. These include the C-Class and other models above in the lineup since they bring higher profit.