Mercedes-Benz (DDAIF) -) on Sunday unveiled a new electric vehicle challenger, the Concept CLA Class, the start of a new family of EVs that will spearhead the carmaker's further expansion into the electric market.
The car, which Mercedes said is close to production, aims to have a range of at least 750 kilometers (466 miles) and will be able to regain up to 400 kilometers of range after just 15 minutes of charging.
The reveal -- made during the IAA Mobility show in Munich, Germany -- comes amid an ongoing EV price war as companies across the industry are working to guide potential buyers over the many obstacles to mass EV adoption, of which price and range are significant factors.
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And following the second quarter, where Tesla (TSLA) -) made up 20% of the global EV market and Chinese EV makers BYD made up 15%, legacy automakers have been forced to play catch-up, inking deals with Tesla to gain access to the company's Supercharging network to help convince buyers to go electric.
"The Concept CLA Class is the forerunner for an entirely new all-electric segment of entry-level vehicles at Mercedes-Benz," Mercedes' CEO Ola Källenius said. "This new model family is inspired by a generation of car buyers who want that unmistakable Mercedes-Benz feel, with more features, even greater comfort and safety and the most advanced technology."
The Concept CLA Class demonstrates our vision to elevate its segment through beautiful design, long-range efficiency, pioneering innovation, sustainable materials and an entirely new operating system, MB.OS.
— Mercedes-Benz (@MercedesBenz) September 4, 2023
Discover more: https://t.co/jLdSB0KrKx#MercedesBenz #ConceptCLAClass
The car offers new battery options and bi-directional charging; it was additionally designed to be a sustainable vehicle, built on Mercedes' modular architecture, which reduces value-chain emissions by more than 40%, according to the company.
Tesla's longest-range model is the 2023 Model S, which offers up to 405 miles, according to EPA estimates. The Model S starts at around $75,000. The more popular Model 3 offers 333 miles and starts at around $50,000.
The 2023 Lucid Air, however, has an EPA-estimated range of 516 miles, with a starting price of just below $80,000.
Mercedes did not say when the new cars might be available, or how much they might sell for.
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Daniel Roeska, a senior research analyst at Bernstein Research, told CNBC that the reveal demonstrates that European OEMs will be able to "create compelling products."
Källenius called the CLA a "revolutionary development" for Mercedes, telling CNBC that he is "not aware of any vehicle, in that class that can match" the range, charging speed or efficiency of the new concept car.
