Mercedes-Benz has approved plans for a new entry-level hatchback that will indirectly replace the A-Class when it is axed in 2028.

The move represents a significant reversal of the German marque's recent new model strategy, which heavily favoured more expensive offerings positioned further up its line-up.

Insiders have told Autocar that the new five-door model will be the fifth bodystyle based on Mercedes' versatile new MMA platform, following the CLA saloon, CLA Shooting Brake and incoming GLB and GLA crossovers.

The new hatchback will be sold with choice of both combustion and electric drivetrains to target the upcoming Audi A3 and BMW 1 Series.

It will therefore effectively fill the gap that will be left by the existing fourth-generation A-Class – a car whose life was extended to 2028 following pressure from its global dealer network amid continued demand.

Autocar understands the new hatchback will be unveiled around the same time as the A-Class bows out, with sales to begin soon after.

​While the new car's final design remains under wraps, insiders have suggested to Autocar that the new entry-level Mercedes may retain a traditional hatchback silhouette and share key dimensions – including track widths and wheelbase – with the third-generation GLA crossover (pictured below), due to be launched in the second half of 2026. 

Indeed, the choice of the MMA platform is critical to the hatchback's business case. Capable of accommodating both ICE and EV drivetrains, it provides crucial drivetrain flexibility amid uncertain EV adoption rates in key global markets, allowing Mercedes to avoid the cost of developing a dedicated EV platform.

The new hatchback will enter a fiercely contested segment, battling established rivals while also facing pressure from the upcoming Volkswagen ID Golf.

This news signals a clear retreat from the luxury-focused model strategy championed by Mercedes CEO Ola Källenius over recent years. That approach, which prioritised high-profit models over volume sellers in mainstream segments, was called into question after the German firm's half-yearly results revealed a 6% drop in overall global sales, driven by a significant 19% decline in EV sales.

It is also a belated admission that this luxury pursuit during the transition to electrification came a high price, namely market share. The new hatchback is not just a strategic reversal but also an acknowledgement that, in uncertain times, drivetrain flexibility and volume are now more crucial than pure profit margin.