Mercedes Shifts EV Strategy, Phases Out EQ Lineup for a Hybrid Future

Mercedes-Benz is overhauling its electric vehicle strategy, phasing out the EQ lineup while committing to both electric and internal combustion engine (ICE) models. The upcoming CLA will be available in both BEV and ICE variants, marking the start of the company’s most extensive product launch campaign to date. By 2027, Mercedes plans to introduce several new models, with a focus on high-margin luxury vehicles rather than mass-market EVs.

Mercedes

The German automaker is also investing in diverse battery technologies to improve cost efficiency and profitability. Alongside the CLA, all-electric GLC and C-Class models are expected by 2027. Meanwhile, its MB.OS infotainment system, featuring AI driven MBUX Virtual Assistant, aims to rival Chinese market leaders. Mercedes is also pushing for Level 2++ autonomous driving in China and the U.S., with Europe following pending regulatory approval.

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