Mercedes-Benz has unveiled a new electric compact SUV, the EQA, as part of its plan to take on Tesla Inc; the move also sees the carmaker increase its lineup of emission-free vehicles as it races to meet targets in Europe and China.

The EQA is the first of several electric models the company plans on launching this year. It will have a mile range of 265 (426 kilometres); it will follow up this model with another one which will have a mile range of 500km, said the carmaker in a video presentation.

The EQA will go on sale in Europe on February 4, at what the board of management at Britta Seeger described as “very attractive price points”.

Electric vehicle (EV) sales took off in Europe in 2020 as carmakers scrambled to meet European Union CO2 emissions targets. EV sales received a boost from subsidies included in economic stimulus measures rolled out in France and Germany. Sales of fully electric and plug-in hybrid models rose 122% across the EU through the first three quarters of 2020. Mercedes-Benz has placed the EQA as an “urban entry model” with board member Seeger describing it as packed with “sustainability, versatility and fresh look”.