Mercedes-Benz will continue producing the current A-Class hatchback until at least 2028, reports Autocar.

The move comes despite repeated statements from CEO Ola Kallenius that the popular hatchback, along with the B-Class MPV, would cease production at the end of 2025.

Mercedes originally touted a future compact car strategy built around four new models, all based on the new MMA platform: the CLA, CLA Shooting Brake, GLA and GLB—all of which will offer a choice of combustion and electrified drivetrains.

The decision is understood to have been driven by continued demand for the seven-year-old ICE model, in combination with a slower than expected take up of Mercedes' newer electric models.

Production of the A-Class Saloon ended earlier this year. Production of the A-Class hatchback is now expected to continue beyond the introduction of EU7 emissions regulations in late 2026.

However, the A35 and A45 AMG hot hatches will be taken off sale because their M139 2.0-litre turbocharged engine does not comply with EU7.

Production is likely to shift to the Kecskemet plant in Hungary.

But Mercedes will stick to its original plan and cease production of the B-Class at the end of 2025.