Mercedes-Benz has announced its strategic exit from the small van market, with production of the Citan and T-Class set to end in 2025. This pivotal decision reflects shifting business priorities and a recalibration of the company’s light commercial vehicle (LCV) focus.
The discontinuation of the Mercedes-Benz Citan and T-Class aligns with the brand’s broader strategy to concentrate on the premium and electrified segments of the LCV market. The small van category, long dominated by badge-engineered partnerships and competitive pricing pressures, no longer fits within Mercedes-Benz Vans’ profitability model or strategic vision.
In a statement from Mercedes-Benz Vans, the company confirmed that its long-standing cooperation with the Renault-Nissan-Mitsubishi Alliance will conclude in the small van sector once current agreements expire. The Citan, based on the Renault Kangoo, and the T-Class, its passenger variant, will both reach end-of-life in Q3 2025.
Mercedes-Benz T-Class. Image: Mercedes-Benz Vans
Key Dates and Implications for Fleets
- Production Ends: Q3 2025
- Order Books Close: Expected by early 2025
- Servicing and Parts Support: Guaranteed until at least 2035
Fleet operators and leasing companies currently relying on Citan or T-Class models should begin planning their replacement strategies now. Although Mercedes-Benz has assured continued parts availability and servicing for a decade beyond discontinuation, the lack of incoming models in this segment marks a clear pivot.
Mercedes-Benz Vans will intensify its efforts in the mid-size (Vito) and large (Sprinter) van segments. These vehicles deliver higher margins, wider customisation options, and align with growing demand for electric drivetrains.
The next-generation eSprinter, launched in 2024, exemplifies the brand’s move toward electrification, offering significantly improved range, charging flexibility, and payload capacity.
Mid and Large Van Strategy Highlights
- Expanded electric powertrain offerings across the Vito and Sprinter lines
- Development of modular platforms (e.g. VAN.EA architecture)
- Focus on software-defined vehicles, connected services, and digital fleet management
- Strengthening the Mercedes-Benz Certified pre-owned van programme
Market dynamics have played a critical role in this exit. While the Citan offered solid build quality and a reputable badge, it operated in a segment saturated by value-led competitors such as the Peugeot Partner, Citroën Berlingo, and Ford Transit Courier. OEMs like Mercedes-Benz, which carry higher production and brand costs, have faced increasing pressure to maintain margin in a space heavily reliant on volume.
Mercedes-Benz Citan. Image: Mercedes-Benz Vans
The Euro 7 emissions regulations, set to impact manufacturing costs, further diminish the commercial viability of small diesel vans, accelerating manufacturer exits from the segment.
Looking ahead, Mercedes-Benz Vans will prioritise models built on the VAN.EA (Van Electric Architecture) platform, targeting both commercial and private mobility markets. This modular, EV-first platform will underpin future versions of the eVito and eSprinter, as well as all-new product lines designed with global electrification standards in mind.
By transitioning its focus, Mercedes-Benz seeks to become a leader in premium electric commercial mobility, investing heavily in both product development and digital ecosystem services such as fleet telematics, over-the-air updates, and smart route optimisation.
Operators currently using the Citan or T-Class should explore alternative models offering similar payloads and dimensions. Viable replacements include:
- Ford Transit Connect – Available in petrol, diesel, and hybrid variants with excellent residuals
- Volkswagen Caddy Cargo – Strong brand, new tech, and reliable servicing network
- Renault Kangoo E-Tech – Shares platform with Citan but retains future viability in small EV space
- Peugeot Partner/Citroën Berlingo/Fiat Doblo Electric – Cost-effective and widely supported
For those committed to staying within the Mercedes-Benz ecosystem, transitioning to the eVito or Sprinter may offer long-term alignment with their sustainability and digitalisation goals, albeit at higher initial outlay and scale.
Mercedes-Benz’s departure from the small van segment signifies a calculated move towards high-value, future-ready vehicle classes. As fleet electrification and regulatory pressures reshape the commercial vehicle landscape, manufacturers must realign their strategies to preserve profitability and innovation leadership.
Mercedes-Benz is betting big on the electric, connected van of the future—leaving smaller models behind to focus on scalability, premium build quality, and integrated fleet solutions.
Author: Mark Salisbury, Editor
