Report: Mercedes Will Continue Making Entry-Level Small Cars With New A-Class Replacement

by Chris Teague

Published: September 23rd, 2025

report mercedes will continue making entry level small cars with new a class

Not that long ago, Mercedes announced that it would move upmarket, aiming to shift toward more expensive, exclusive vehicles. That plan didn’t last long, and the brand is now reportedly considering updating its small car with a replacement for the entry-level A-Class in the U.S. market.

The A-Class is still on sale in Europe, where it has seen strong demand, and a move to revive the nameplate in the United States would give Mercedes a much lower starting price. It costs a little over 34,000 euros in Germany, compared to almost 56,000 euros for the next cheapest model in Mercedes’ catalog, the CLA. The automaker said it is still committed to the smaller format, with an executive saying, “In the long term, there will be an entry-level model in the Mercedes-Benz world.”

Smaller cars aren’t as profitable as their more expensive counterparts, but they offer a cheaper starting point to attract younger buyers to the brand. The A-Class’ subcompact hatchback and sedan body styles haven’t been the most popular here, but a more affordable Benz likely won’t be a bad thing for sales.

Mercedes originally wanted to become an all-electric car brand by 2030, but it has since backed off on the most aggressive parts of that plan, favoring internal combustion and hybrid power for many new models. Expensive EVs haven’t resonated with buyers as strongly as automakers had hoped, so an entry-level model could help offset some of the lower sales.

[Images: Mercedes-Benz]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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2 of 10 comments

FreedMike on Sep 23, 2025

These guys used to sell the p*ss out of the CLA, despite it being trash.

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Original Guy on Sep 23, 2025

Dumb.

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