Mercedes-Benz’s Bold Three-Year Expansion Plan

Mercedes-Benz is gearing up for an unprecedented product offensive, announcing the most ambitious lineup expansion in its history. Over the next three years, the German automaker will launch dozens of new models and updates, balancing its commitment to internal combustion engines—including V8 and even V12 powertrains—with the ongoing shift towards electrification.

Despite the growing emphasis on electric vehicles (EVs) and plug-in hybrids, Mercedes expects xEVs to account for no more than 30% of sales by 2027. The company is taking a unified design approach, ensuring that both fuel-powered and electric vehicles share a cohesive aesthetic. This transition will begin with the all-new CLA debuting in two variants, followed by a major S-Class overhaul and a wave of high-performance releases from Mercedes-AMG.

Upcoming electric models will include versions of the GLC, C-Class, and E-Class, incorporating advanced battery technologies developed for the Vision EQXX concept. These will feature multiple battery chemistries, including LFP, NMC, and hybrid LMO/NMC cells, optimizing both cost and energy density. Meanwhile, all combustion engines will receive varying degrees of electrification to comply with future Euro 7 regulations.

Beyond powertrains, Mercedes plans to introduce a next-generation steer-by-wire system, a liquid-cooled computing platform, and a behavioral AI-powered virtual assistant. The brand’s proprietary autonomous driving technology will also see enhancements.

In parallel, Mercedes aims to cut fixed costs by an additional 10% over the next three years, streamlining management structures and accelerating digitalization with generative AI at the forefront. This strategic shift signals not a complete overhaul, but a calculated pause—balancing tradition with innovation as the industry evolves.