Mercedes-Benz will extend the production period for the A-Class model, selling it until 2028.
Mercedes-Benz is making significant changes to its compact car lineup, with the next generation of the A-Class hatchback taking a backseat. The German automaker has announced that it will not be releasing a successor for the A-Class hatchback on the new Modular Modular Architecture (MMA) platform. Instead, the company is focusing its compact car strategy on the new-generation CLA and CLA Shooting Brake, as well as the GLA and GLB models, all built on the MMA platform with both internal combustion and electric powertrains.
The current A-Class hatchback (chassis code V177) will continue to be produced until at least 2028, with upgrades to comply with EU7 emissions regulations. A late 2026 facelift is expected for the model. The production of the A-Class sedan ended earlier in 2025, and performance hatch variants like the A35 and A45 AMG are expected to be discontinued due to emissions standards non-compliance, though timelines are not confirmed.
The Audi A3 and BMW 1 Series continue as direct competitors in the premium compact hatchback segment. However, the new-generation CLA will challenge models such as the BMW 2 Series Gran Coupe and Audi A3, especially as it moves into sedan and shooting brake body styles with updated tech and electric options.
In a move to further consolidate its production, Mercedes plans to shift A-Class production to Kecskemet, Hungary. The German plant will produce Mercedes' new compact range under the MMA platform, including the CLA sedan, CLA Shooting Brake, GLA, and GLB.
Despite the shift away from the A-Class hatchback, Mercedes is re-evaluating its decision to discontinue the entire A-Class lineup due to the continued demand for Internal Combustion Engine (ICE) vehicles. The A-Class hatchback will continue to compete with the BMW 1 Series, Audi A3, and similar models in its segment.
In the Indian market, the new CLA will be available, competing with the recently launched BMW 2 Series Gran Coupe in its segment. The Skoda Superb 2025 is expected to be priced between ₹ 55 - 60 Lakhs, while the Audi A4 is available for ₹ 47.93 Lakhs. The Mercedes-Benz C-Class is available for ₹ 55 Lakhs, and the A-Class Limousine is available for ₹ 46.05 Lakhs. The A-Class Hatch will continue to be produced until 2028, and the A-Class range will be replaced by the new-generation CLA in India next year.
Jorg Burzer, head of production at Mercedes-Benz, confirmed the extended production of the A-Class lineup. The concept version of the new CLA was showcased at the 2025 Bharat Mobility Global Expo. However, the demand for Mercedes-Benz's new electric offerings is slower than expected.
Sources: [1] https://www.autocarindia.com/mercedes-benz/news/mercedes-benz-to-discontinue-a-class-hatchback-in-india-next-year-261737 [2] https://www.autocarindia.com/mercedes-benz/news/mercedes-benz-a-class-hatchback-to-continue-until-2028-261739 [3] https://www.autocarindia.com/mercedes-benz/news/mercedes-benz-to-shift-a-class-production-to-kecskemet-261741
- The shift in Mercedes-Benz's compact car strategy, focusing on the new-generation CLA and CLA Shooting Brake, as well as the GLA and GLB, marks a significant change in the automotive industry, as these models compete with the BMW 2 Series Gran Coupe and Audi A3 in the luxury compact segment.
- Finance experts predict that the continued production of the current A-Class hatchback until 2028 will have a steady impact on the transportation sector, due to the substantial demand for Internal Combustion Engine vehicles in the lifestyle market, particularly the A-Class hatchback, Audi A3, and BMW 1 Series.
- Despite the slow demand for Mercedes-Benz's new electric offerings, the company's decision to extend the production of the A-Class hatchback has a considerable effect on the finance and industry sectors, as the model will remain in competition with its premium compact hatchback counterparts in various markets, such as India.
