Mercedes-Benz Plans to Create New Sub-Brand to Foray into Electric Cars

The growing popularity of environment friendly vehicles like electric cars is prompting many manufacturers to announce plans for new models. According to a Bloomberg report, Mercedes-Benz is one automaker that is planning to launch a sub-brand to deal with the development and sale of electric vehicles. With the Tesla Model 3 attracting almost 400,000 bookings even before production begins, it is clear that electric cars are all the rage and offer plenty of scope for growth, not just when it comes to PR and credibility, but also when it comes to the bottomline.

Mercedes-Benz will create the sub-brand to take on leading players in the field like BMW and Tesla. The German automaker will initially be launching two SUVs and two electric sedans. Earlier in 2016, Mercedes-Benz had announced that it would be debuting an electric car at the Paris Motor Show which is scheduled to be held in September. This is likely to be a high-performance all-electric sedan concept vehicle. Based on previous reports, the model will be an all-wheel-drive concept having a range of about 300 miles on a single charge and will come with a hefty price tag of USD 200,000.

The new electric cars will be manufactured at the company’s plant in Bremen, Germany. The company also plans to begin production of a fuel-cell electric variant of the Mercedes-Benz GLC SUV that can be charged with electricity from a wall socket and hydrogen. Another vehicle that could possibly be unveiled in September is the concept version of an electric SUV.

Mercedes had ventured into the fuel-cell segment with a version of its B-Class, but the model evoked mixed reviews and the company then limited the model to electricity only. Volkswagen too has announced grand plans for expanding its range of electric vehicles by adding as many as 20 electric cars and plug-in hybrids by 2020.