Mercedes likely to develop sub-brand to rival BMW i division

Mercedes' head of Sales & Marketing, Ola Källenius believes Mercedes could consider creating an eco-focused sub-brand to rival the likes of BMW’s i division. However, he thinks the company should first continue to focus on expanding its fleet of plug-in hybrid and zero-emissions models.

He revealed that the company has started to invest heavily in the development of alternative powertrains and electrification, as the company looks to develop further towards zero emissions. The investments are likely to see returns by end-2017, with Mercedes expected to feature a plug-in hybrid line-up with 10 models. Out of this, three models are due by year-end.

“By the end of this year, we will have three electric cars, with the B-Class and the two Smarts,” he said.

He also revealed that the company is set to launch its next-gen fuel-cell vehicle based on the GLC platform towards the end of 2017 as well.

“We could choose for the purpose-made electric vehicles to create some sort of sub-brand but, right now, Mercedes is focused on investing tremendous resources into the path towards zero emissions. It’s something that will affect the whole portfolio.”

BMW's i brand has seen quite a bit of success with the i8 hybrid having proved quite popular for the brand. Last year, the i8 became the world’s largest-selling hybrid sportscar with 5,456 units recorded. The figures exceeded the combined figure of all other hybrid sportscars by other manufacturers. BMW is also set to expand its i brand with a third model due by 2020, and an open-top iteration of the i8 due by end-2017.