The upcoming third generation A-Class is one of the most interesting new vehicles currently being prepared by Mercedes-Benz and all for good reason as the only common factor it has with the current model is its name.

You see, the Stuttgart-based company decided to compete more directly with the BMW 1-Series and even the higher-end versions of the VW Golf and as a result, opted for a sportier looking hatchback body built on a conventional platform instead of the tall, minivan-like shape and sandwich floor of the first two generations of the A-Class.

These latest spy shots of a five-door prototype of the A-Class testing in Europe suggest that the development of the car is nearing its end as engineers have removed much of its camouflage. If you want to see what the final model will look like, you can check out the patent images we posted earlier this year.

Our spy photographers also captured a shot of the interior. Even though it’s slathered in cladding, the design appears similar to that of the new B-Class that made its debut in Frankfurt.

The latest B-Class will also lend its powerplants to the A-Class including a 1.6-liter turbocharged gasoline four-pot in 122HP and 156HP guises, and a 1.8-liter common rail turbodiesel with 109HP and 136HP.

A 2.0-liter turbocharged gasoline unit producing around 200-horses and a high performance version developed by AMG featuring a four-cylinder turbo engine with close to 300 ponies will follow down the line.

The new A-Class hatchback will make its debut next year.

Photo credits: CarPix

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