Plans to retire the Mercedes-Benz A-Class line-up as soon as this year have been rolled back, and its CEO Ola Källenius clarifies that the model will be produced well into 2026, Autocar reports.

This news comes the carmaker's recent retargeting of its BEV-only stance in favour of what Källenius says as a more flexible arrangement to "cater to different customer needs", in which it will continue to produce models with internal combustion engines alongside its BEV ambitions.

To recap, Mercedes-Benz' 2023 earnings call outlined the manufacturer's projections that 50% of its sales within the 2030s will come from xEVs – electrified vehicles, like hybrids and plug-in hybrids (PHEVs), backtracking on its 2022 and 2021 goals of being a BEV-only carmaker by 2030.

However, Källenius pointed that the price disparity is one reason for the slower-than-expected EV adoption rate and suggests that they will remain pricier than their ICE equivalents for a while more. Mercedes-Benz projects EV demands will mainly be centred in the small and medium car segments.

Also read: "Customers will set the pace": Hybrids back in focus as Mercedes-Benz scales back EV-only by 2030 goal

“I don’t think anyone had ever thought that the once-in-a-century transformation of the auto industry will be a straight line. We have to realise there's going to be peaks and throughs in this transition," he said. 

"We are ushering a new era, and we are not abandoning our fresh and competitive combustion portfolio; we'll keep that fresh as well," he continued.

In September last year, the company unveiled its new electric-first (but not electric-only) MMA architecture that will underpin its upcoming compact models. The platform can also accomodate ICE engines and hybrid powertrains, and the Concept CLA Class will be the first product to ride on this new chassis.

To facilitate the production of A-Class vehicles, Mercedes has modified its Rastatt manufacturing plant in Germany. The adjustments now allow the facility to manufacture cars based on both the MFA compact car platform and its electric-focused MMA successor.

Certain variants of the next-generation A-Class will also feature Geely-developed hybrid engines, owing to the Chinese company's stake in the automaker.

For the time being, things remain status quo in Malaysia, in which the locally-assembled (CKD) A-Class range is priced as below:

• A200 Sedan: RM 238,888
• A250 Sedan: RM 263,888
• A45 AMG: RM 509,888

Also read: New vs old, here are the changes you are paying for in the facelifted 2023 Mercedes-Benz A-Class sedan (W177) in Malaysia