Mercedes-Benz is gearing up for its most ambitious product and tech launch campaign, rolling out dozens of new or refreshed models by 2027 while implementing a comprehensive performance enhancement plan to boost competitiveness and resilience.
The company is introducing a refined, status-oriented design language across all models, allowing customers to choose their preferred vehicle first and then select their powertrain—whether battery-electric (BEV), hybrid, or a high-tech electrified combustion engine (ICE).
READ MORE: BMW Group Tests Hydrogen Trucks for Zero-Emission Logistics
This strategy debuts with the all-new CLA, available in both electric and ICE variants, showcasing flexible drivetrain options while maintaining identical design. Mercedes-Benz will also expand its luxury segments, including a new, smaller G-Class and an upgraded Mercedes-AMG lineup featuring a next-gen electrified V8 and dedicated high-performance electric models.
A major step forward in technology, the proprietary Mercedes-Benz Operating System (MB.OS) will be integrated into all new vehicles, enhancing infotainment, automated driving, and vehicle performance.
MB.OS enables full control over sensors and actuators, scalable software tailored to different markets, and cutting-edge AI-powered features like the MBUX Virtual Assistant. The system supports Level 2++ autonomous driving for complex urban traffic in select regions, with Level 3 speeds expected to reach 130 km/h by the decade’s end.
The BEV portfolio will be underpinned by highly modular electric drive units and scalable battery options, including cost-efficient Lithium-Iron-Phosphate (LFP) and high-performance Nickel-Manganese-Cobalt (NMC) batteries.
The cost per kilowatt-hour in the new CLA battery has been reduced by 30% compared to its predecessor. Meanwhile, Mercedes-Benz will continue to refine its high-tech ICE vehicles, with EU-7 compliant engines ranging from four to twelve cylinders.
China remains a key market, with dedicated R&D efforts ensuring region-specific innovations in navigation and automation. Seven China-specific models are planned as part of the launch campaign.
Mercedes-Benz is also working on cost efficiencies, targeting a 10% reduction in material costs through localization and supplier collaboration. The company aims to streamline operations by increasing local-for-local production, reducing global manufacturing capacity, and making strategic adjustments to its dealer network and production footprint.
Investment levels will peak in 2025 due to the aggressive product rollout but will ease from 2026 onward. By 2027, major investments in the CLA, electric GLC, C-Class, and AMG.EA models will be complete. The company also plans further fixed-cost reductions, including digitization, AI-driven efficiencies, and closer collaboration between sales and financial services.
With these strategic moves, Mercedes-Benz positions itself to navigate a challenging market landscape while maintaining its legacy of luxury, innovation, and performance.
READ MORE: Child size replica of iconic racing car for sale at £8,000
Subscribe today for the freshest car news delivered to your inbox
