Mercedes-Benz’s parent company Daimler is closing in on the launch of a new all-electric brand to rival BMW i, according to reports in the German newspaper Handelsblatt.

The brand would feature new all-electric models produced by Mercedes and sister brand Smart, but wouldn’t include hybrid versions of existing models.

Autocar UK revealed last month that Mercedes was considering such a brand, but sales and marketing boss Ola Källenius said increasing its range of all-electric models was the first priority.

If Handelsblatt’s claims are to be believed, it suggests this decision has been reversed and that Mercedes will now launch its new zero-emissions cars under the new marque from the off.

Already confirmed for this year are three electric models, comprised of a zero-emissions B-Class and two electric Smarts. An all-electric SUV based on the Mercedes GLC is also due to be revealed at this year’s Paris motor show, before going on sale next year. Handelsblatt says the new brand will be launched alongside that reveal.

Källenius confirmed the launch of the electric SUV when he told Autocar UK: “At the end of next year we will launch a next-generation fuel cell vehicle, which is a zero-emissions vehicle based on the GLC platform”.

Mercedes has so far declined to comment on today’s news.