Prices and specifications for the new Mercedes-Benz E300 Bluetec Hybrid have been announced with saloon models priced from £39,645 OTR while the estate variant starts at £41,435.

The BIK rates start at 12% with the lowest CO2 at 109g/km although the figure varies according to body style and specificaion.

Standard equipment includes 17-inch alloy wheels – 16-inch wheels can be fitted as a no-cost option to achieve the lowest possible CO2 and economy figures. Also included is leather upholstery, Becker Map Pilot Navigation and LED daytime running lights.

The E300 Bluetec Hybrid uses a twin-turbo 2.1-litre four-cylinder diesel engine developing 204bhp and 369lb-ft of torque, linked to a 20kW electric motor mounted within the automatic transmission powered by a 19kW lithium-ion battery.

It will acceleratr from 0-62 mph in 7.5-seconds (estate: 7.8-seconds) and reach a maximum speed of 150 mph (144 mph). When fitted with the 16-inch wheels, the E 300 BlueTEC Hybrid is capable of returning 65.7 mpg (62.8 mpg) on the combined cycle while emitting as little as 109 g/km of CO2 (116 g/km).

The Hybrid system is packaged within the vehicle so as not to impact on the versatility or load capacity of the E-Class in any way. The electric motor is mounted within the 7G-TRONIC PLUS automatic transmission and adds on 65mm to the total length of the transmission, while luggage space is the same as in standard E-Class saloons and estates. UK deliveries will start in November.