Mercedes Is Replacing the A-Class With a New Affordable SUV

German publication Automobilewoche reports that a new model will fill the gap between the outgoing A-Class and the more expensive CLA. The new vehicle is expected to arrive as a smaller SUV with a lower price tag than the CLA.German publication Automobilewoche reports that a new model will fill the gap between the outgoing A-Class and the more expensive CLA. The new vehicle is expected to arrive as a smaller SUV with a lower price tag than the CLA.

This comes as a change from Mercedes’ previous strategy, which involved more upscale vehicles at higher price points. The brand has made an effort to move away from that attitude, removing the word “luxury” from its official strategy. Mercedes has seen a drop in profits in the first half of 2025, helping drive its push toward more volume-friendly models.

The A-Class is a strong seller in Europe, which is behind the automaker’s decision to keep the car around for a few more years. That said, we might see an A-Class replacement after 2028 to keep pace with demand. Mercedes board member Mathias Geisen told reporters that, “We’ll be introducing further models based on our new MMA architecture after the CLA. Believe me: In the long run, there will be an entry-level model in the world of Mercedes-Benz.”

The A-Class and other small cars don’t deliver the meaty profit margins that more expensive models do, but they provide a more affordable entry point that attracts buyers to the brand. Geisen said, the car helps “bind many of our customers to the brand early on.”

While we don’t know anything about the new model’s powertrain or configuration options, some expect the SUV to be more of an updated version of a current model in the Mercedes catalog rather than an all-new vehicle. It wouldn’t be the freshest vehicle on the block, but that approach would help control development and production costs, making the SUV cheaper.