The electric Mercedes-Benz CLA offers a glimpse at the future of the car industry.

For years, carmakers have tried to solve the biggest hurdle holding electric vehicles back: range anxiety.

Other carmakers are bringing ever-larger cars with bigger batteries to help solve the problem.

But Benz engineers prioritised efficiency when developing the new CLA electric sedan.

The new model is a better choice than its mild-hybrid sibling, and it represents the German brand’s most important addition to its Australian line-up in years.

Wild AI feature in the new CLA electric

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That’s because it is Mercedes-Benz’s answer to the growing wave of Chinese rivals flooding the market with more affordable EVs.

Purely from a financial standpoint, the entry-level CLA 200 is the more reasonable choice if you had to choose between it and the all-wheel-drive CLA 350.

It starts from about $80,000 drive-away and slips under Australia’s Luxury Car Tax threshold for fuel-efficient vehicles, making it a far more attractive proposition than the flagship CLA 350, which cops posh tax that pushes prices to about $100,000 drive-away.

Better still, it never feels like the cheaper model.

You still get the same striking exterior, futuristic cabin, massive panoramic glass roof, and Mercedes-Benz’s all-new operating system.

Most of the technology that makes the CLA feel genuinely next-generation comes standard, meaning you don’t feel like you’re missing out by choosing the more affordable version.

What the entry-level CLA 200 does sacrifice, however, is the larger battery, dual-motor all-wheel-drive system, and extra punch found in the CLA 350.

For another $1800, the optional Premium Package is almost impossible to ignore.

Without it, the front passenger misses out on the MBUX Superscreen, leaving the dash looking noticeably bare and, frankly, unstylish.

The package also adds a crisp head-up display, Burmester surround sound, Multibeam LED headlights, and keyless entry.

Unfortunately for those who refuse to accept that Artificial Intelligence is key to the future, the cabin of this Mercedes-Benz is a clear giveaway of where the motoring industry is heading.

It is a little overwhelming at first.

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Screens dominate the dashboard, physical buttons have largely disappeared, and the new operating system is deeply integrated with Google’s Gemini artificial intelligence.

And it is that AI system Mercedes wants you to use to activate key functions, like changing the temperature and fan speed.

But the AI assistant is a bit ambitious.

When it works, it’s genuinely useful. When it doesn’t, it’s frustrating.

I only found the assistant useful when asking it to turn off lane-keep assist and activate parking assist. It seemed to struggle with other commands I asked it to try.

I’m hopeful Mercedes-Benz can continue refining the system through over-the-air updates.

Today’s shortcomings aren’t permanent.

Beyond an aerodynamic new exterior designed for maximum efficiency, the CLA excelled at providing a truly accurate range estimate, especially when travelling on a 110km/h freeway.

This CLA has impressively been engineered in a way that extracts as much as possible from a relatively modest 58kWh lithium iron phosphate battery.

As a result, expect to be able to travel close to the claimed driving range of up to 470km.

And even though the CLA 200 is wildly underpowered compared to the 350, it still produces a respectable 165kW and 335Nm, with a 0–100km/h time of 7.5 seconds.

There is more than enough performance to overtake on the motorway completely stress-free.

The rear-wheel-drive layout gives the CLA a playful balance through tighter corners, while the steering is well-weighted to inspire confidence without ever feeling nervous.

Unlike the hybrid version, there is also no hesitation waiting for an engine to wake up. Once you press the accelerator, it responds immediately.

Once you dial in your preferred regenerative braking setting, driving the car quickly becomes second nature.

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The overall result from this car is truly impressive.

The CLA 200 is clearly aimed at buyers who embrace technology rather than tolerate it. If you’re someone who loves digital gadgets and wants your car to feel like the latest piece of consumer tech, you’ll feel right at home.

It represents a genuine generational leap for the brand.

And by pricing the CLA 200 below the Luxury Car Tax threshold while leaving almost all of the flagship’s appeal intact, Mercedes-Benz may have created one of the smartest luxury EVs currently on sale.

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