Mercedes-Benz is launching today the EQB, an electric SUV with up to seven seats, ahead of the IAA Mobility show in Germany. It might be viewed as the German automaker’s answer to the increasingly popular Tesla Model Y. Earlier this year, Mercedes-Benz announced that it would have its own entry in the segment with the EQB. Today, at IAA Mobility in Munich, the German automaker is launching the new electric SUV.

There’s no questioning that the Model Y is rapidly becoming the most popular electric vehicle in the world. Tesla is seeing strong demand for the compact electric SUV in the US and China, where it is currently being produced. So much so that the automaker is also adding production at its new factories in Berlin, Germany and Texas, USA.

Earlier this year, Mercedes-Benz announced its €40 billion ($47 billion) EV breakthrough plan, a target that will push the company to become more vertically integrated, retrain its workforce and ensure uninterrupted supplies of the Li-Ion batteries. Back in 2017, Mercedes said it would electrify — which means gas-hybrid, plug-in hybrid or battery electric — its entire lineup by 2022. The German automaker said in July that by next year it will offer battery-electric vehicles in every segment that it serves.

Mercedes aims to launch three electric-only architectures in 2025 that will form the basis of all of its new vehicles. Its so-called MB.EA platform will be used for its medium to large passenger cars, while AMG.EA will underpin its performance Mercedes-AMG cars and the VAN.EA will be dedicated architecture for electric passenger minivans and light commercial vehicles. The company has already announced its “electric first” compact car architecture, known as MMA, which will launch in vehicles by 2024.