Mercedes-Benz will expand the A-Class family to include a new entry-level sedan, says a new report.
According to Autocar, the new four-door is a direct response to the arrival of both the Audi A3 sedan and the BMW 1 Series sedan that's currently on sale in China but could head Down Under.
Like the small BMW sedan, the sales emphasis for the new 1 Series-rival will be the Chinese market but, according to the British mag, the entry-level Benz sedan will also be sold in both North America and right-hand drive markets meaning it is almost certain to be destined for Australia.
Based on the same MFA platform, the new small sedan is currently being developed alongside the fourth-generation A-Class hatch.
That's why it will share its 2.0-litre four-cylinder petrol and diesel engines and come with front-wheel drive with the option of all-wheel drive.
Curiously, and perhaps confusingly, Autocar claims the A-Class sedan will be available with either a standard or long-wheel base.
The reason for the longer version, that's likely to encroach on the C-Class territory, is most Chinese owners are chauffeured and choose not to drive themselves. It's also why the current CLA four-door coupe has been deemed not suitable for a long-wheelbase version over the lack of rear headroom.
From launch a plug-in petrol hybrid is likely to be available that will have a pure-electric range of more than 50km.
Later on, an AMG version will also join the line-up that will have more than 300kW.
New tech introduced by both the A-Class hatch and sedan includes Mercedes-Benz' next generation Command 6.0 infotainment system that includes gesture control.
Set to arrive along with the hatch, the Mercedes A-Class sedan is expected to go on sale in 2018.