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The new Mercedes-Benz GLA has been added to the brand’s updated compact-car range, with company boss Ola Källenius insisting it is “better in all dimensions” than its best-selling predecessor.

Set to arrive in electric form in November, with a hybrid version due early next year, the third-generation rival to the Audi Q4 and Volvo EX40 is based on the Stuttgart firm’s compact MMA architecture, which it shares with the CLA saloon and the seven-seat GLB SUV. As with those models, the new GLA brings together EV and combustion-engine model lines, with the electric version effectively taking over from the EQA.

It adopts Mercedes’ latest design language, including a retro-inspired grille, and Källenius said one of the main aims was to give it a more dramatic appearance. “If you look from the side it’s like a sports car SUV,” he said, “but still on a compact footprint. It’s the ultimate sporty city SUV.”

Measuring 4565mm in length, the new GLA is 143mm longer than the model it replaces, while its wheelbase has been extended to 2790mm to free up more cabin room. The car also gets a wider rear track, although the roofline sits 20mm lower than before. Wheel sizes range from 18in to 20in.

Inside, the longer wheelbase brings more space for both front and rear passengers than in the previous GLA. Despite the lower overall height, Mercedes says head room has also improved. Boot capacity stands at 410 litres, while the electric version also gains a 107-litre frunk.

The cabin follows current Mercedes practice with a dashboard led by touchscreens, including an optional MBUX Superscreen that stretches across the width of the car and integrates three displays. Like Mercedes’ latest models, it uses the newest version of the company’s MB.OS software, powered by an advanced Nvidia chip, and includes AI-enabled voice control along with advanced driver assistance systems and other features.

The GLA Electric will be available with three power outputs matching those of the related CLA. The entry-level 200 produces 221bhp from a single rear-mounted motor, drawing energy from a 58kWh lithium-iron-phosphate (LFP) battery. The 250+ raises output to 268bhp, while the initial range-topping all-wheel-drive 350 delivers 349bhp through a pair of electric motors. Both the 250+ and 350 use an 85kWh nickel-manganese-cobalt (NMC) battery.

The longest-range version of the GLA will deliver 408 miles, compared with 484 miles for the sleeker CLA and 379 miles for the more upright GLB. As with the CLA, the MMA platform has been engineered for efficiency, with the most efficient version capable of an official 4.2mpkWh. Thanks to its 800V architecture, the GLA can charge at speeds of up to 320kW.

The hybrid variant will arrive early next year and will use the same Horse-produced 1.5-litre turbo engine already seen in the CLA. That engine is supported by a 30bhp electric motor integrated into the eight-speed automatic gearbox and powered by a 1.3kWh battery. Mercedes has not yet released full performance figures, but styling differences between the EV and hybrid are minimal.

The GLA is expected to start at around £45,000 when it goes on sale in the UK. It will be offered in four trim levels, including AMG Line and AMG Plus, both of which feature bespoke styling elements.