Mercedes-Benz is in the midst of creating a new electric car sub-brand, sources close to the matter have revealed.

The new sub-brand, which Mercedes does not have a name for yet, will launch two full-electric SUVs and two sedans. One of the SUVs will be launched at the 2016 Paris Motor Show in October and will offer a driving range of around 500 kilometres on a single charge.

The SUV to be unveiled in Paris will also debut the unique design Mercedes has given to its electric cars. It seems possible the design of the cars could be inspired by the F 015 concept and Concept IAA – both of which debuted earlier this year with full electric drive systems.

Mercedes’ electric car brand will set BMW’s ‘i’ brand in its sights, along with America electric car giant Tesla. The German automaker also plans to eventually roll out an electric heavy duty commercial truck, a product Tesla also recently committed to with its ‘Master Plan Part 2’ business strategy.

The first of Mercedes’ electric cars will be built at its factory in Bremen, Germany. The plant will also be tasked with building an electric hydrogen fuel-cell powered version of the GLC SUV in 2017.

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