The three-pointed star brand will launch these cars under a new electric car sub-brand, said a source in a Bloomberg report. Chief executive Dieter Zetsche said in June that the company planned to unveil an electric car at the Paris Motor Show in September and it is expected to be an SUV, capable of driving about 500 km on a single charge.

The cars are set to sport a completely new design language that will set them apart and impart a standalone identity of a Mercedes electric vehicle. This set of cars is also likely based on the MEA platform and will be powered by up to three electric motors.

READ: Merc 2017 car lineup highlights

The source in the report also claims that Mercedes will make the upcoming electric cars at its factory in Bremen, Germany. The Hanseatic facility will also manufacture the fuel-cell electric version of the Mercedes-Benz GLC SUV that can be charged with electricity from a wall socket and hydrogen, from next year. While a high-performance all-electric sedan is expected to be unveiled in September, a concept version of an upcoming electric SUV could also make its debut.

The global rise of electric carmaker Tesla has given luxury carmakers a tough time of late. As a result, various carmakers, including Mercedes and BMW, are making roadmaps for a successful electric future. Even Volkswagen has also jumped the bandwagon and is preparing around two dozen electric and plug-in hybrids by the turn of this decade.