MERCEDES-Benz has cut prices across its C-class range to make the cars more accessible to fleet customers, with the saloon range now starting at below £20,000 - the psychological pricing threshold beaten by the Jaguar X-type 2.0.

In addition, the manufacturer has included popular options as standard on C-class saloons, estates and Sports Coupes.

There is also a new SE trim level above the existing Classic, Elegance and Avantgarde.

The C-class saloon range now starts at £19,995 for the C180 Classic, the C180 estate Classic is priced at £20,945, while the entry-level Sports Coupe comes in at £18,795.

Mercedes wanted to offer a sub-£20,000 car as an entry point to the C-class saloon range to take advantage of the increasing number of company car drivers who are ditching volume manufacturers for premium brands.

Nick Ratcliffe, head of DaimlerChrysler corporate sales, said: 'This whole strategy has been driven by the needs and requirements of the corporate market.

'We have put in a lot of effort, time and resources over the last two years into corporate sales, and we have worked with the product planning teams to make them aware of the needs of corporate customers and their importance in the UK.'

The price realignment sees £1,145 cut from 2.0-litre and 2.2 CDI Classic trim saloons and estates, albeit with the removal of automatic climate control.

Ratcliffe added: 'We have talked the strategy through with CAP Network and other wholelife cost experts and they are happy about the cars' lower running costs.'

The new Mercedes-Benz E-class range will start at £24,940 on-the-road - an increase of £900 over the previous model, but with improved specification and revised engines.

Five engines will be available from launch - the 2.6-litre V6 E240, the E320 and E500 (which replaced the previous E430), and two diesel engines: the E220 CDI and E270 CDI. The entry-level E200 Kompressor, E320 CDI and E55 AMG will join the range later in the year.

Diesel engines feature increased power and torque and greater efficiency, while six and eight cylinder models have a five-speed automatic transmission as standard.

Entry-level Classic models feature alloy wheels, automatic climate control, rain-sensing wipers, heated windscreen washer jets and a leather-trimmed wheel.

Despite the average 3.6% price increase over the previous model, Mercedes claims customers get better value from increased standard specification.

Sample prices: E200K – £24,940, E240 – £28,040, E320 – £33,440, E220 CDI – £25,985, E270 CDI – £27,435, E320 CDI – £32,795.