Mercedes-Benz will launch the third-generation GLA crossover late next year, chairman Ola Källenius has confirmed.

The smallest member of the brand’s MMA-based compact car family will be sold in both electric and hybrid forms, replacing the first-generation EQA EV and the second-generation ICE GLA.

The entry-level EV is seen as a key model for the German firm to compete with some of the best selling compact electric cars on the market, such as the Volkswagen ID 3 and MG4. The petrol model will take on the Volkswagen Golf.

Speaking at the launch of the new Mercedes GLC EQ ahead of the Munich motor show, Källenius said the GLA "will be coming by the end of next year". "We will continue to offer it as an entry point into Mercedes's brand," he added.

Pictures of the new GLA testing reveal that it will have a sportier, more coupé-like silhouette than today’s model, with a distinctive front end featuring Mercedes' new 'Iconic Grille' which was debutted by the GLC.

Autocar understands the car is expected to grow in size to just over 4500mm in length, allowing for a more spacious interior. For comparison, the current GLA is 4410mm and EQA is 4463mm.

Although pictures have yet to be taken of the new GLA’s cabin, i'is expected to mirror the designs of the recently revealed CLA saloon and incoming GLB crossover.

They feature a free-standing full width display, AI-supported infotainment functions and more upmarket materials than today’s model – all of which aims to outclass rivals in the segment.

The electric version will also receive a frunk, something not present on today’s EQA.

Underneath, the electric GLA will use the same 800V electrical architecture as the new CLA.

That car is offered with either a 58.5kWh LFP or 85kWh NMC battery and a top-end range of 484 miles.

Drive comes from either a single-motor or dual-motor powertrain, which deliver 268bhp and 349bhp respectively.

As with its MMA siblings, the GLA is planned to receive at least two AMG performance models featuring axial flux motors from British firm Yasa in 2027. 

ICE versions of the GLA will also draw directly from the new CLA, using a hybridised 1.5-litre four-cylinder turbo petrol engine with 134bhp, 161bhp or 188bhp, mated to an eight-speed dual-clutch automatic gearbox. 

Production will take place alongside the CLA saloon at Mercedes' recently refitted Rastatt plant in Germany.