Mercedes is going all out at the German International Auto Show (IAA 2023) in Munich this year, where it will unveil two new models. In addition to the E-Class All-Terrain that will complete the new E-Class lineup, the automaker will also unwrap a new entry-level, compact sedan concept car at the show.

The automaker has divulged little about this upcoming concept car, saying only that it will “redefine the Mercedes-Benz entry segment.” To that end, the model will be a “vision for class-leading innovation, design, and digital experience.”

To give us a taste of what to expect, Mercedes released darkened teaser image of the concept, revealing that it will be a sedan, rather than a hatchback. It also appears to have extensive LED lighting elements that go beyond the front-end, onto the forward and rear quarter panels, and even into the doors. It is understood that the CLA-sized study will be an electric model.

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Read: Redesigned Mercedes CLA Spied With Evolutionary Looks And ICE Power

According to a report from Autonews, the production version of the study is expected to be based on the MMA platform that will allow it to accommodate both all-electric and combustion powertrains.

Mercedes’ commitment to the entry-level segment has been questioned as the brand seeks to focus on premium vehicles with high margins. However, the automaker’s CEO, Olla Kallenius, believes that a simplified compact model range can work. Earlier reports suggest that it will be limited to a new CLA, GLA, GLB, and a baby G-Class.

In addition to its compact offering, Mercedes will also unveil the final model in the E-Class lineup. The “All-Terrain” model will build on the E-Class Estate model, which was revealed on June 19, and add extra ride height, off-roady design cues, as well as some new tech to help it challenge off-road trails.

Both the E-Class All-Terrain and the entry level concept car, as well as models from across Mercedes’ stable, likely including the facelifted EQA and EQB, will be shown at the “Open Space” Mercedes-Benz pavilion at IAA 2023. The event is scheduled to take place from September 5-10, 2023, in Munich.

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