Mercedes-Benz A-Class to be replaced after all as luxury brand pursues volume – report

First, the Mercedes-Benz A-Class was set to die without replacement. Then it was set to live on for a couple more years. Now, it’s reportedly getting replaced after all.

Autocar reports Mercedes-Benz has scuppered its plan to axe its most affordable model entirely, part of a strategy announced in 2023 that was to see its range of Entry Luxury models shrunk from seven models to four.

The A-Class hatchback and sedan and B-Class MPV were set to be retired, leaving only the CLA, CLA Shooting Brake, GLA and GLB on the new MMA platform, each offered with a choice of petrol or electric power.

The A-Class replacement will become the fifth body style on the new MMA platform, according to insiders, and will also be offered with petrol and electric power.

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At this point, it’s unclear what it will be called, though the A-Class nameplate has a lot of equity given it’s been in use since 1996.

The new entry-level Benz will reportedly debut around 2028 when production of the current A-Class ends, and Autocar reports it will share key dimensions with the next GLA crossover which is set to continue to have a rather hatchback-like appearance.

It’s possible, then, the fifth-generation A-Class and third-generation GLA could be as visually similar as the first-generation GLA was to the third-generation A-Class.

In 2022, Mercedes-Benz announced it would put a greater focus on high-end products – including Maybach models – in the pursuit of higher margins.

It planned to allocate more than 75 per cent of its investments to develop products for the most profitable market segments.

“It’s not our goal to be a competitor of the volume producers. That’s not what the Mercedes-Benz brand stands for… We would rather be looking up than down,” said Mercedes-Benz CEO Ola Källenius in 2022.

The following year, it confirmed its Entry Luxury strategy, spelling the end of the A-Class despite it being an extremely popular vehicle in markets like Europe.

However, in July, German outlet Automobilwoche reported word from Mercedes-Benz officials that the A-Class would stay in production until 2028 due to strong sales in Europe.

Mercedes-Benz Cars’ overall sales were down by 9.0 per cent year on year in the second quarter of 2025, with sales in the Top-End category down by 8.0 per cent, albeit still accounting for roughly the same overall share of the company’s sales.

Additionally, sales in the Entry category were down by 16 per cent year on year amid Mercedes-Benz’s overhaul of its offerings.

Overall revenue for Mercedes-Benz Cars was down by 11 per cent, and for the first half of this year was down by eight per cent.

Mercedes-Benz cited troubles in the Chinese market and US tariff uncertainty as the reasons for its sales and revenue drops.

In Australia, the A-Class is Mercedes-Benz’s fourth most popular model line behind the GLC, GLE and GLA SUVs.

To the end of August, the brand has delivered 1329 A-Classes this year, down 12 per cent on the same period last year and fractionally behind the Audi A3 (1332, down 36.2 per cent) but ahead of the BMW 1 Series (1173, up 59.2 per cent).

MORE: Explore the Mercedes-Benz A-Class showroom