The Mercedes Brand

I. Origins: Birthplace of the Automobile

Mercedes’ story begins long before modern luxury cars. Its roots stretch back to the invention of the automobile itself a moment commonly dated to 1886, when Karl Benz patented the Benz Patent‑Motorwagen, widely regarded as the first true automobile. Shortly afterward, Gottlieb Daimler and Wilhelm Maybach developed their own petrol engine and car designs. The two strands of automotive innovation eventually converged.

In 1926, the two companies Benz & Cie. and Daimler Motoren Gesellschaft formally merged, creating Daimler‑Benz AG and giving rise to the Mercedes‑Benz brand. Ever since, the company’s three‑pointed star — representing land, sea, and air mobility has symbolized engineering excellence. Today, Mercedes celebrates its legacy as not just a manufacturer of cars but as a pioneer shaping the future of transportation itself.

II. Brand Identity and Philosophy

From its earliest days, Mercedes has positioned itself at the pinnacle of automotive engineering:

Luxury and Comfort: Interiors that blend craftsmanship with cutting-edge technology.
Engineering Precision: Engines, chassis, and safety systems built for performance and reliability.
Innovation Leadership: From ABS braking to advanced digital cockpits, Mercedes often sets industry standards.
Global Prestige: Beyond cars, the brand stands for social status, cultural presence, and engineering leadership worldwide.

Over time, Mercedes’ identity expanded from traditional luxury sedans and coupes to SUVs, AMG performance vehicles, commercial vans, and electric mobility — all while preserving a core focus on premium experiences.

III. A Modern Turn: Strategy Through 2025 and 2026

1. Product Offensive — Largest in History

As part of an ambitious growth and innovation push, Mercedes announced its most extensive product launch plan ever: more than 40 new models between 2025 and 2027. This is arguably the most significant product offensive in the company’s history, blending electrified vehicles and modern combustion variants.

This offensive includes:

A new generation of electric vehicles and electrified versions across segments.
Hybrid, plug‑in hybrid, and mild‑hybrid models alongside traditional combustion engines.
The modernization of flagship series like the S‑Class, GLE, and GLS.
Expansion in commercial and utility segments with electric vans and transporters.

This strategy reflects two imperatives: adapting to tightening emissions regulations worldwide, and meeting evolving customer expectations for sustainability, performance, and digital connectivity.

IV. Electrification and Sustainability: Re‑Inventing Mobility

1. Electrification Goals

Mercedes has committed to a future where a significant portion of its vehicles are fully electric or electrified. By 2030, the company aims for at least 50 % of sales to consist of fully electric or plug‑in hybrid vehicles. In parallel, all newly developed van models from 2026 onward are designed to be exclusively electric, underlining a push toward zero emissions in commercial mobility.

2. Real‑World EV Market Dynamics

Despite this commitment, electric vehicle sales in 2025 declined compared to the previous year, with total battery‑electric vehicle deliveries dropping by about 4 % year-on-year to roughly 197,300 units. This was driven primarily by weaker EV demand in passenger technologies, although growth in electric vans helped offset this trend.

However, signs of momentum emerged toward the end of the year: EV deliveries in Q4 2025 rose by 3 % year-on-year and 18 % quarter-on-quarter, largely attributed to strong demand for the new all-electric CLA.

V. Key 2025–2026 Model Launches and Technologies

1. Mercedes‑Benz CLA — A Breakthrough

One of Mercedes’ most strategic launches in 2025 was the third‑generation CLA, built on the new Modular Architecture (MMA) platform. For the first time, both internal combustion and electric versions share the same design and architecture — a departure from Mercedes’ previous approach of differentiating electric (EQ) models with distinct designs.

The CLA’s electric variant incorporates an 800‑volt electrical system, enabling ultra‑fast charging and strong performance. It’s also been critically acclaimed: in early 2026, the new CLA garnered significant positive attention and was recognized by industry awards for its blend of luxury, efficiency, and technology.

2. All‑Electric GLC and Other EVs

The all‑electric GLC EQ celebrated its world premiere in late 2025 and has been met with strong orders extending into 2026 — evidence that demand for next-generation electric SUVs remains resilient.

3. S‑Class Facelift and Flagship Updates

In January 2026, Mercedes marked the global debut of the facelifted S‑Class, its flagship luxury sedan. The update includes extensive technical, comfort, and design upgrades, reaffirming the S‑Class position as a benchmark for automotive luxury and technology. This model is also slated for local assembly in key markets like India, reflecting Mercedes’ global manufacturing strategy.

4. Vans and Commercial Mobility

Mercedes’ commercial division is also pushing electrification: for example, the VLE electric van — a fully electric multi-purpose vehicle — is expected to start production in early 2026. Such models represent Mercedes’ bid to bring electric technology into segments beyond traditional passenger cars.

5. Future Concepts — Vision Iconic

Mercedes continues to explore advanced design and futuristic technologies. The Vision Iconic concept, unveiled in 2025, blends nostalgia with advanced EV design and autonomous capabilities. Concepts like this illustrate Mercedes’ long-term vision for both aesthetic innovation and next-generation mobility.

VI. Cutting-Edge Technologies at Mercedes

1. Digitalization and MB.OS

Mercedes is unifying vehicle software around its MB.OS platform — a proprietary operating system that integrates digital experiences, advanced driver assistance, connectivity, and user personalization. This represents a strategic shift toward software-defined vehicles.

2. Updated Infotainment — MBUX 3.3 OTA

In late 2025, Mercedes began rolling out over-the-air (OTA) updates to its MBUX 3.3 infotainment system in hundreds of thousands of vehicles worldwide. This update brings enhanced audio (including Dolby Atmos), expanded media integration, new productivity tools, and improved voice assistant capabilities — underscoring Mercedes’ focus on digital lifestyle features in modern vehicles.

3. Driver Assistance and Autonomy

While most Mercedes vehicles currently offer advanced driver assistance systems (ADAS), the company continues investing in higher levels of autonomy. As traffic infrastructure and regulations evolve, Mercedes aims to integrate more robust automated driving technologies in future models.

VII. Motorsport: Formula 1 and Premium Engineering

While Mercedes is often associated with luxury road cars, it also competes at the highest level of motorsport via the Mercedes‑AMG Petronas Formula 1 Team. In 2026, the team unveiled a new livery and car design for the F1 season — a combination of black, grey, and green — that drew strong reactions from fans. Despite design controversies, the team continues to innovate in response to technical regulation changes and remains a centerpiece of Mercedes’ performance engineering reputation.

Formula 1 serves not just as a platform for brand visibility, but as a laboratory where advanced materials, aerodynamics, hybrid powertrain technologies, and data-driven engineering practices are tested and refined before potentially influencing production vehicles.

VIII. Sustainability Beyond Vehicles

1. Renewable Carbon Initiative

In 2025, Mercedes became the first automaker to join the Renewable Carbon Initiative (RCI), a global program dedicated to reducing reliance on fossil carbon in manufacturing and replacing it with renewable sources like captured CO₂ and biomass. Mercedes’ participation aims to accelerate the development of carbon-neutral production processes across the automotive sector.

2. Production and Supply Chain Decarbonisation

Mercedes’ factories have operated on 100 % renewable electricity since 2022, and production emissions have fallen significantly. The company plans to increase recycled material usage and utilize green steel in its vehicles — representing a systemic shift toward sustainability throughout the vehicle lifecycle.

These actions go beyond regulatory compliance; they position Mercedes as a leader in sustainable manufacturing, supply chain accountability, and circular-economy practices.

IX. Business Strategy and Global Presence

1. Headquarters and Global Investments

Mercedes reaffirmed its commitment to its historical home in Stuttgart, Germany, rejecting a high-profile proposal in 2025 to relocate its headquarters to the United States. The CEO emphasized the importance of deep-rooted regional heritage while maintaining significant manufacturing and investment footprints worldwide.

At the same time, Mercedes continues to expand in key markets like North America. For example, the company is establishing a North American headquarters expansion in Metro Atlanta, Georgia, bringing hundreds of new jobs and an R&D center, underlining the importance of a localized presence in major markets.

2. Sales Dynamics and Market Position

Mercedes’ global sales remain robust with around 2.2 million vehicles (cars and vans) delivered in 2025, including strong electrified variants and traditional models.

However, certain regions such as China and the United States faced sales headwinds in 2025, reflecting broader market volatility. In response, Mercedes is pivoting toward a blend of product diversification, electrified offerings, and targeted market strategies all designed to strengthen its competitive position in the luxury segment.