- Mercedes could have a Tesla Model Y competitor in 2026
- Production of Mercedes’ Model Y competitor will reportedly begin in October 2025
- The compact crossover will replace the EQB EV in the lineup
Mercedes-Benz isn’t done with the entry-level luxury market yet, and it continues to have its eye on EV buyers.
On Tuesday, Automotive News reported that an electric version of the Mercedes-Benz CLA four-door coupe will enter production. A crossover based on the electric CLA coupe might follow right behind the sedan and arrive in the first half of 2026.
AutoForecast Solutions has said production of this electric CLA-based crossover, which is being viewed as a direct shot at the Tesla Model Y, is expected to begin in Rastatt, Germany in October 2025.
The Model Y-fighting Mercedes carries an internal codename of X174. Mercedes won’t speak to future product plans.
Mercedes-Benz Concept CLA-Class
Mercedes-Benz previewed the upcoming electric CLA coupe in 2023 with the Concept CLA-Class. The concept was meant to show off the engineering of Mercedes-Benz Modular Architecture (MMA), which is to serve as the base for four compact EVs in multiple body styles. One will be the rakish four-door coupe while another will be the compact crossover bearing the codename X174.
The crossover would likely replace the current EQB EV crossover, which is an EV based on today’s gas-powered GLB. AutoForecast Solutions Vice President Sam Fiorani told Automotive News the EQB, which launched in 2022, will not be replaced when production ends in late 2025.
The MMA platform features an 800-volt electrical architecture that was said to enable DC fast charging of up to 250 kw, which would recover up to 248 miles of range in 15 minutes. The electrical architecture also includes vehicle-to-grid (V2G) and vehicle-to-home (V2H) capability.
Mercedes touted that the MMA platform was designed around a “remarkably small” battery pack with multiple chemistries. Base models will use lithium iron phosphate (LFP) chemistry while upper-end models will use an anode made with silicon oxide. The pack design is said to be lighter weight than today’s batteries and provide greater structural stiffness for the vehicle.
Mercedes developed an EQXX concept that went 746 miles on a single charge in 2022. The focus of that car was all about efficiency. The Concept CLA was said to use silicon-carbide power electronics, battery-cell packaging, and heat pump all derived from the EQXX.
In February Mercedes delayed its EV sales targets that would’ve had the automaker going all-electric in some markets by 2030. Automotive News said a new gas-powered CLA will arrive in 2026 after the EV model. The gas and electric CLAs will reportedly share similar styling and both ride on the new MMA platform.
