Mercedes Hits the Brakes on the A-Class, Prepares Budget SUV Instead
When Mercedes-Benz starts talking about “affordability,” you can be sure it’s less about charity and more about strategy. Stuttgart has realised that not everyone dreams of an S-Class. Some simply want a three-pointed star without surrendering their entire paycheck.
The A-Class, the compact hatchback that once introduced Mercedes to Europe’s thinner wallets, will soldier on until 2028. After that, it bows out, making way for something entirely different: a budget-friendly SUV. The name remains under wraps, but the concept is crystal clear—deliver something small, practical, and priced to fit comfortably into the mainstream.
According to German reports, Mercedes has no intention of reinventing the wheel. The newcomer will be pieced together from existing components, allowing engineers to cut costs without cutting corners. Lower development spending should translate directly into a more palatable sticker price, which is exactly what the European market is clamouring for.
Compact cars accounted for more than a quarter of all sales last year, a stark reminder that affordable Mercedes models remain essential. Demand is forcing the brand to stay in a segment it was previously prepared to abandon.
The plan until recently had been clear: retain only the new CLA and channel resources toward more profitable, high-end models. And there is reason for that—Mercedes has promised more than 40 new or refreshed models over the next three years, most aimed squarely at the luxury end of the spectrum. But as much as champagne fuels the brand’s image, you cannot live on champagne alone. Sometimes, even Mercedes has to serve sausage rolls.
The upcoming “people’s Mercedes” is designed to be exactly that: a well-bred wolf in sheep’s clothing. Affordable enough to capture the mass market, but polished enough that no one forgets under which star it was born. If all goes to plan, it will serve as a new gateway into the Mercedes-Benz world—only this time without the golden key.
