Using the manufacturer’s new modular hybrid system, the car features a 20kW (25bhp) electric motor located between the engine and transmission and a compact lithium ion battery fitted under the bonnet. This allows the hybrid drive to be used with a petrol engine for Asian and North American markets, a diesel engine for Europe, and to be scaled up or down to fit other models and power outputs.

The E300 BlueTEC Hybrid, which will be sold in Europe, uses the same four-cylinder, 204bhp 2.1-litre diesel engine as the E250 CDI, which with the assistance of the electric motor offers 229bhp. Because the hybrid system requires no body modifications, the E-Class is available as a saloon or estate with no loss of boot or interior space.

Saloon models reach 62mph in 7.5 seconds from rest and have a top speed of 150mph, while the estate takes 7.8 seconds on the way to 144mph. The hybrid drive means this is the most efficient model in its class, at 65.7mpg and 109g/km CO2 for the saloon, and 62.8mpg and 116g/km for the estate. Benefit in Kind banding starts at 12% and 14% respectively.

At £39,645 for the saloon, the E300 BlueTEC Hybrid also under-cuts its petrol-electric rivals on price – the BMW ActiveHybrid 5 starts at £46,865, the new Lexus GS 450h starts at £44,995, and the Infiniti M35h £42,020. Mercedes-Benz also has the only hybrid executive estate car, which starts at £41,435.

Standard specification is similar to the AvantGarde, including 17-inch wheels, leather seats and Becker Map Pilot satellite navigation, which usually adds £795. Hybrid models are around £4,500 more expensive than an equivalent E250 CDI BlueEFFICIENCY AvantGarde, and Mercedes-Benz is offering 16-inch wheels as a no-cost option for those seeking maximum fuel efficiency.

For more information:

Click here for a first drive of the E300 BlueTEC Hybrid 

Click here to explore the Mercedes-Benz modular hybrid system