In the face of slowing demand for electric vehicles, Mercedes-Benz plans to keep its current A-Class on sale until 2026 instead of a previous plan to axe the gas-powered compact this year.

The information was first reported last week by The Sun, which cited comments made by Mercedes CEO Ola Källenius. Only the hatchback is expected to remain in production and not the sedan which was discontinued in the U.S. after 2022.

The news comes just weeks after Källenius said slower than expected EV sales has caused Mercedes to delay its plan to exclusively sell EVs in most markets by 2030, and that the company will now continue offering gas-powered cars well into the next decade.

The much higher cost of producing EVs is also another reason Mercedes will keep gas-powered cars on sale longer than previously planned. Källenius said the cost parity between EVs and gas-powered cars is “currently miles away,” The Sun reported.

The Sun also reported that the A-Class will be given a redesign, likely on the new MMA platform that debuts in a redesigned CLA-Class recently spotted testing in prototype form and due on sale next year. The MMA platform is designed for both hybrid and electric powertrains, and it's possible both options will be offered in any future A-Class.

The A-Class nameplate was set to be scrapped this year, together with the B-Class compact van which doesn't appear to be getting a stay of execution. Mercedes last year even teased a next-generation compact range which was to consist of new versions of the CLA-Class, CLA-Class Shooting Brake, GLA-Class, and GLB-Class only.