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Mercedes just pulled back the curtain on its most affordable sedan yet — and it’s electric. With an estimated sticker price of USD 55k to USD 65k depending on trim and options, the German automaker seeks to compete with Tesla’s Model 3 and expand its EV lineup, Bloomberg reports. Mercedes is betting that its latest model will help it claw back its market share in China and Europe, where it has been long losing ground to BYD and other Chinese automakers.
What’s so special about the new CLA? The new CLA is designed to be “the most efficient and the most intelligent Mercedes we’ve ever made,” CEO Ola Källenius said at a launch event in Rome. This will be Mercedes’ first EV built from the ground up on a dedicated electric-first platform, rather than adapting a combustion engine design — it’s also the automaker’s first non-luxury EV. The sleek design is tech-packed, boasting an industry-leading 492-mile range, reportedly outpacing competitors in this segment. “There is no Chinese car with the same range in this segment,” said Mercedes’ technology chief Markus Schäfer. The CLA will also feature next-gen software, AI-powered voice assistance, and a UV-filtering glass roof designed to enhance cabin comfort.
The new release hedges against uneven consumer patterns: While EV sales surged in China — almost 35% in January — and parts of Europe, growth has been slower in markets like the US, where hybrids remain popular. That’s why Mercedes is offering a hybrid version of the new CLA alongside its fully electric model. “If the world is not dominant electric by 2030, we […] cannot walk away from a significant part of our revenues,” Källenius admitted. By keeping one foot in both worlds, Mercedes is ensuring it doesn’t get left behind if the EV transition takes longer than expected.
What’s going on in the EV market? Despite a very publicly volatile week for Elon Musk’s Tesla, which saw shares in the US tumble by 15% — marking its steepest drop since 2020 — and German registrations for the vehicle plunging 70% over the past two months, the rest of the EV market is having a good year, with an almost 50% global uptick y-o-y as of February. While Mercedes' CLA carries a roughly EUR 10k premium over Tesla’s Model 3, Musk’s stock market slump has created an opening for Mercedes to attract disillusioned buyers seeking a premium EV alternative.
Chinese EV continue to flex their dominance even as tariff tensions rise: Xiaomi, Geely, NIO, and Xpeng have all reported surging deliveries in 2024, shrugging off a sluggish domestic economy and newly imposed US and EU tariffs, Bloomberg writes. China’s auto exports jumped 46% in early 2025, while EV sales at home soared 85% in February, according to the China Passenger Car Association.
Meanwhile, Egypt’s EV market is heating up with new arrivals. Chinese automaker Zeekr debuted its Zeekr 001 and Zeekr X models this month, priced at EGP 2.7-3.3 mn and EGP 2.1 mn, respectively. Meanwhile, Raya Auto expanded its XPENG lineup with the launch of the G6, joining the P7 and G9 last month. These new models expand the existing lineup of EVs available in Egypt. Still debating whether or not to hop on the bandwagon? We did the thinking for you in this edition of the Enterprise Guide.
