Mercedes Benz is the new player to jump on the electric car bandwagon. In an apparent face off against the rivals like Tesla and the BMW’s sub brand ‘i’, the German car manufacturer announced the launching of its own sub brand to create Mercedes electric vehicles.

The name of the sub brand has not been finalised yet by the company. Two electric SUVs as well as two electric sedans will be marketed under the new flagship. The production of the electric cars will commence at the Mercedes-Benz factory in Bremen, Germany. The company has earlier confirmed that it will be unveiling its electric car at the Paris Motor Show this September. The ride will be rendering 310 miles range (500 kilometres.) The commercial production of these electric cars is expected in 2021.

The launching of the Mercedes electric vehicles sub brand implies a strategic shift for the German automaker. Until now, Mercedes has been focusing on the development of electric motors and batteries for its existing models. Analysts believe that Tesla’s phenomenal success with its electric car models S and X has compelled other manufacturers to venture in to this fast expanding niche.

After all said and done, it’s the customers that will be the eventual winners of enhanced competition.