Electric Mercedes EQE sedan, EQE SUV and flagship EQS SUV on way

Mercedes-Benz has confirmed that it will launch a new EQE sedan, EQE SUV and large EQS SUV to capitalise on the growing demand for pure-electric vehicles.

Announcing the three new EQ models to investors during a conference overnight in Europe, the German car-maker said the new Mercedes-Benz EQE, EQE SUV and flagship EQS SUV will all be based on the latest version of the company's dedicated Electric Vehicle Architecture (EVA) that will make its debut with the upcoming EQS luxury sedan due in 2021.

The current Mercedes-Benz EQC electric SUV already on sale in Australia is built on an early version of EVA, which derived from the X253 GLC-Class platform and can accommodate combustion engines.

As well as the three new electric EQ models build on EVA 2.0, Mercedes also confirmed a new dedicated electric car platform that it has created for small and medium models that will be called MMA.

It's not been disclosed which vehicle will first benefit from the new architecture, but Benz says the first MMA-based vehicle will roll off the production line in 2025.

As part of the presentation, Mercedes execs said 2022 will be a crucial year for the EQ range with both the EQE sedan as well as the flagship EQS SUV to be introduced.

Described as the "business limousine of the future", the EQE sedan will, Mercedes says, be only "slightly smaller than the EQS".

The EQS SUV, meanwhile, is being groomed as a natural rival for the Tesla Model X.

The smaller EQE SUV's launch timing was not disclosed but it is expected to be available in 2023.

As well as the EQ news, Mercedes bosses confirmed the rumours that it would create a new sub-brand out of its iconic G-Wagen model, cashing in on the unprecedented demand for the latest G-Class.

Other headline news announced by the German car-maker was that the electrification of the AMG performance models will begin as soon as 2021.

It also revealed that the ultra-luxury Mercedes-Maybach brand would double its current model line-up, suggesting the GLS 600, S 650 and S 650 Pullman could be joined by another upmarket take on the G-Class and, possibly, a large coupe and convertible inspired by the Mercedes-Maybach 6 concept.

Crucially, instead of being powered by V8 and V12 engines, Mercedes-AMG told investors that the AMG, Maybach and G-Class brands would all "go electric".

With the arrival of the Mercedes-Benz EQE sedan and EQE SUV, plus the EQS SUV, the new models will join the current EQC and EQV, plus the upcoming EQA, EQB and EQS limo.

This takes the EV tally to eight battery-powered vehicles, not including Smart which is now co-owned with Geely that only makes electric versions of the ForTwo, ForTwo Cabriolet and ForFour hatch.

Mercedes chairman Olla Källenius has previously announced that the car-maker would invest €10 billion ($A16.5b) in a 10-strong EQ model range that will be all on sale by 2025.

It's believed the missing models will be two small or mid-size cars based on the new MMA platform that will launch in 2025.

It's also rumoured engineers are secretly developing a small A-Class sedan that will bag the EQA's pure-electric powertrain.

Finally, as part of the presentation, Benz revealed that the EQS limo's development had already surpassed two million kilometres of testing, with the brand confirming its production will take place in the same factory at Sindelfingen, Germany, as the new seventh-generation Mercedes-Benz S-Class.

As well as the EV product onslaught, Benz's boss slipped some bad news to investors, with Källenius announcing the German car-maker planned to cut fixed costs 20 per cent by 2025, compared to 2019 levels.

This would be achieved by reduced spending, 'capacity adjustments' and lower personnel costs, suggesting mass job losses.

Mercedes' R&D costs would also be one of the victims of the cuts, with spending slashed 20 per cent by 2025, compared with 2019.