Mercedes-Benz has begun series production of the new GLA at its plant in Rastatt, Germany, bringing the compact SUV into production in both electric and hybrid form.

The fully electric version is already being built, while 48-volt hybrid versions are due to follow later in 2026.

Mercedes has invested a sum in the hundreds of millions of euros in the Rastatt operation, highlighting artificial intelligence, digital twins and its MO360 production system as part of the plant’s modernisation.

Building the electric and hybrid versions within the same manufacturing environment gives the company more room to respond to shifts in demand.

The new GLA matters in Gulf markets because the compact premium SUV remains an important entry point to luxury marques. The segment combines city-friendly dimensions with the raised, practical seating position many buyers in the region prefer.

Mercedes’ flexible production strategy is also notable. Building the electric and hybrid versions within the same manufacturing environment gives the company more room to respond to shifts in demand.

That flexibility has become increasingly important across the industry. Electric adoption is growing, but at very different rates from one country to another, while hybrids have regained the attention of buyers looking for lower fuel consumption without full dependence on charging infrastructure.

For the Gulf states, the next two questions are specification and timing. Mercedes-Benz has not necessarily confirmed that every drivetrain offered in Europe will be sold in every Gulf market.

Local buyers will also want to know the differences in battery range, charging performance, cabin cooling and equipment within the regional specification.

The GLA’s transition illustrates the wider direction of the compact premium segment: electric drivetrains are increasingly offered alongside combustion alternatives rather than as isolated, specialist models.

Gulf Auto will update this article when Mercedes-Benz Middle East confirms the UAE and Saudi line-ups, local prices and delivery dates.