Mercedes unveils a new electric car to compete with the Tesla Model 3

The new compact electric vehicle will feature technology from Mercedes' EQXX concept.

Mercedes-Benz will redefine the point of entry into its range by introducing an all-new compact luxury vehicle in 2024 and will also mark the debut of the brand's new platform and infotainment system.

The new all-electric compact sedan, based on the company's upcoming MMA underpinnings, will rival the Tesla Model 3 as the most affordable model in Mercedes' lineup.

Mercedes unveils a new electric car to compete

"The entry point for the Mercedes brand in the future will be different than it is today," Mercedes CEO Ola Källenius said last year to investors about the company's future line-up.

In addition, a strategic presentation revealed that the company intends to reduce its portfolio of variants in the entry-level luxury segment from seven to four while raising prices.

Electric Mercedes to compete with Tesla

Expect some technology to leak from the record-breaking Vision EQXX concept car, which focused on maximizing efficiency to deliver range.

This would be critical in a smaller car, such as the first MMA-based model, so some of the EQXX engine technologies (delivering 95% efficiency), power control electronics, and other features may be expanded for series production in the new model.

The car's sleek design could also incorporate aerodynamic cues first seen on the EQXX in order to reduce drag and increase range.

According to Mercedes Chief Technology Officer Markus Schaeffer, the battery, electronic motor, EQXX reflector sides, and some electronic engineering die-cast parts will be used in future series production cars, so there will be a significant carryover from this test bed.

He said of the EQXX: "We wanted something that mirrored what was happening in the real world, we want to take this technology in series production and see the same results."

Will Mercedes make the EQXX?

New MMA architecture for Mercedes electric cars

Kallenius also emphasized that "this new MMA architecture heralds a new generation of technology, both on the drivetrain side in terms of battery chemistry, efficiency, and the drivetrain itself."

Mercedes is explicitly focusing on "a greater range than smaller batteries" with a future target of more than 800Wh/l (for comparison, a Tesla Model 3 battery offers an energy density of around 680Wh/l), with a slim battery in the car helping the floor to free up some space. Expect The new car should top the current EQA SUV's longest range of 324 miles.

This technology transfer will also extend to information and entertainment, as the new car will debut the MB.OS infotainment system from Mercedes. It is almost certain that the new model will include a wide digital screen and an entertainment dashboard as part of the company's goal for advanced graphical interfaces, but the system behind The scenes is most interesting.

New processors from Mercedes

Mercedes has experimented with a new type of processor that performs tasks in "neural shape spurts". Simply put, this means the computer stores tasks and executes them all at once a threshold is reached, saving power and boosting driving range in the process.

Unlike high-end competitors such as Volvo and Polestar, who have teamed up with Google on their infotainment platform, the German company is going it alone with MB.OS development.

"We are the architects of our house company, as it were, it is critical that you take ownership of your operating system for the sake of safety and security," Chief Program Officer Magnus Ostberg told Auto Express.

The new sedan was initially thought to be called the EQA, but the name is now in doubt following reports that Mercedes will discontinue the EQ branding of electric vehicles as its European lineup moves to all-electric models by 2030.

Whatever its name, this new car marks the beginning of a renewed focus on profit per vehicle and sales margins. Rather than volume, the company is working to push its lower-cost models up the market, with a greater focus on higher-margin luxury cars.

Mercedes reduces luxury cars

Mercedes intends to reduce its presence in the 'entry luxury segment' and predicts a 25% decline in market share by 2026; Sales volume in this segment has already fallen from around 680,000 cars in 2019 to around 570,000 in 2021.

Despite this, from 2019 to 2021, the average selling price of Mercedes cars in this class increased by about 20 percent - and the brand says it will rise significantly by 2026, reflecting the more luxury-focused approach it will take, abandoning expansion Prevailing and chasing sales volumes.


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