Mercedes-Benz has introduced its latest plug-in hybrid vehicle (PHEV) to the Australian market—the new C 350 e sedan—offering an elegant blend of traditional C-Class luxury with the benefits of modern electrification. Priced at $98,200 (MRLP), the C 350 e sits well above the typical fleet or novated lease budget. However, it demonstrates how manufacturers are expanding their hybrid offerings in response to Australia’s New Vehicle Efficiency Standard (NVES) and the global shift toward zero-emissions mobility.
This new model reinforces the role of PHEVs as a transition technology, giving drivers the chance to reduce fuel use and emissions while retaining the convenience of an internal combustion engine for longer trips. And with more plug-in models expected to hit the market, especially from premium brands, PHEVs will continue to play an important role before a full battery-electric vehicle (BEV) future becomes mainstream.
A Hybrid Powerhouse
Under the bonnet, the C 350 e combines a 2.0-litre four-cylinder turbocharged petrol engine (150 kW and 320 Nm) with a punchy electric motor (95 kW and 440 Nm). Together, they deliver a system output of 230 kW and 550 Nm—enough to sprint from 0 to 100 km/h in just 6.1 seconds. Power is sent to the rear wheels via a smooth-shifting nine-speed automatic transmission.
The 25.4 kWh battery provides a substantial NEDC-tested electric-only range of 104 km, allowing for emissions-free commuting on most urban drives. The hybrid system supports over 100 kW of energy recuperation when slowing down or descending, further enhancing efficiency.
Smart Driving Modes and Intelligent Energy Use
The C 350 e’s advanced energy management system uses a route-based strategy to determine the most efficient mix of petrol and electric power. When a destination is entered into the navigation system, the vehicle analyses topography, traffic, and speed limits to optimise battery use.
Drivers can also manually select one of three regenerative braking levels via steering wheel paddles, including a ‘D-’ mode that enables one-pedal driving for smoother, low-speed control.
The integration of regenerative and mechanical braking is seamless, and the car communicates with assistance systems to further support efficient driving.
Exterior Elegance, Interior Intelligence
On the outside, the C 350 e wears the refined styling of the C-Class with modern AMG Line touches: sculpted bonnet, LED headlamps, diamond-block grille, and 18-inch AMG alloys. It looks every bit a premium sedan.
Inside, the cabin showcases Mercedes-Benz’s signature attention to detail. The dash features a 12.3-inch digital cluster alongside a high-resolution infotainment screen running the latest MBUX system, offering voice, touch, and gesture control.
The placement of the battery under the rear bench preserves cabin and boot space. There’s no step in the boot floor, enabling through-loading and practical cargo flexibility—a rare achievement for a PHEV sedan.
Premium Features as Standard
Compared to the C 300, the C 350 e adds an impressive list of extras as standard:
- Burmester® 3D surround sound
- DIGITAL LIGHT Package with Adaptive Highbeam Assist Plus
- Augmented reality navigation
- Driving Assistance Package Plus
- Self-levelling Comfort Suspension
These build on an already strong base of features: panoramic sunroof, heated and memory front seats, ambient lighting, head-up display, 360-degree parking camera, and KEYLESS-GO Convenience Package.
Charging Convenience
Mercedes-Benz includes two charging cables: one for standard domestic outlets and another for wallbox/public AC charging. Standard AC charging supports up to 11 kW, giving a full charge in around two hours.
For faster turnarounds, an optional DC charging upgrade is available for $1,500 (MRLP), enabling charging speeds up to 55 kW. This delivers a 0–80% top-up in approximately 20 minutes—useful for longer trips or high-mileage users.
Pricing and Market Fit
The Mercedes-Benz C 350 e is now available to order, with a Manufacturer’s Recommended List Price (MRLP) of $98,200. While it showcases advanced hybrid technology, premium build, and driving refinement, its pricing places it well above what most fleet managers or novated lease customers would consider viable.
In the novated lease space, the Fringe Benefits Tax (FBT) exemption on electric vehicles (EVs) does not apply to PHEVs—since the government removed this benefit in April 2025. This further erodes its appeal as a salary-packaged vehicle, despite its fuel savings and low running costs in EV mode.
PHEVs Pave the Way to Full Electrification
The C 350 e highlights the value of plug-in hybrids as a stepping stone toward BEV adoption. It offers real-world electric range, premium comfort, and zero tailpipe emissions on short trips, with no compromise on long-distance travel.
As more manufacturers pivot to meet NVES targets, expect an increase in PHEV offerings—especially in the premium market. For fleets seeking to trial electrification or individuals not ready to commit to a full EV, PHEVs still offer a practical compromise. But as BEV infrastructure expands and total cost of ownership continues to improve, the window for PHEVs may narrow.
The C 350 e is a compelling example of the best that transitional technology can offer—but one clearly aimed at luxury buyers, not value-focused fleets or lease customers.
Note: Pricing excludes on-road costs such as registration, stamp duty, and dealer delivery. Contact your authorised Mercedes-Benz retailer for drive-away pricing and local availability.
