2026 Mercedes-Benz C350e review: Australian first drive

Mercedes-Benz has introduced a plug-in hybrid variant to its regular C-Class line-up, but if it feels like you’ve heard this story before, it’s because you have.

In 2015, the car maker launched the C350e locally, followed by the C300e four years later. But it was quickly withdrawn after being axed from the range in 2021.

Ten years after it first arrived, though, the Mercedes-Benz C350e is back, and it re-enters the world of plug-in hybrid (PHEV) rear-wheel-drive mid-size sedans, after BMW gave its 300e the chop last year.

Here’s our first look at what the latest plug-in hybrid C-Class has to offer.

The C-Class line-up consists of six grades, opening with the C200 for $87,800, followed by the C200 Sport Edition for $88,400 and the C300 for $98,200. Prices before on-road costs.

This C350e PHEV variant, based on the C300, now has price parity with the petrol grade for the first time, costing $98,200.

Above the regular C-Class variants are two AMG grades, the C43 and C63 S E Performance Hybrid, which cost $123,800 and $193,100, respectively. Prices before on-road costs.

In Australia, options for a plug-in hybrid medium sedan are slim, with the C350e’s only direct competitor now being the Audi A5 Sedan e-hybrid quattro S line, which costs $89,900. 

As a reference, the petrol-hybrid-powered Lexus ES300h sedan line-up starts from $65,540 for the Luxury, rising to $74,920 for the F Sport and $80,170 for the Sports Luxury.

Meanwhile, the fully-electric BMW i4 sedan costs $88,900 for the single-spec eDrive 35.

All prices are before on-road costs.

The Mercedes-Benz C350e features standard equipment similar to the C300, including AMG Line styling both inside and out – including 18-inch AMG alloy wheels – leather upholstery, sports front seats with heating and memory functions, a panoramic sunroof, a head-up display, rear privacy glass, and digital matrix LED headlights.

It also features a 15-speaker Burmester 3D surround-sound system, an 11.9-inch infotainment screen, and a 12.3-inch digital instrument cluster, as well as wireless Apple CarPlay and Android Auto, a wireless phone charger, a 360-degree camera, dual-zone climate control, augmented-reality navigation, and 64-colour ambient lighting.

Options include two Manufaktur paint colours for $1230.90 each, and 19-inch AMG multi-spoke alloy wheels. All other paint choices, including six metallic options and non-metallic white, are included in the asking price.

From the outside, you wouldn’t know to look at it that there was anything different about this C-Class, except for it having a flap on either side – one for petrol and the other for a plug – rather than just one.

The sculpted bonnet, LED lights and diamond-block grille remain the same, while the rear end is characterised by signature Mercedes LED tail-lights.

Inside, the Artico Neva grey and black leather power-adjusted seats are very comfortable and soft. Although the colour is called grey, in reality it appears more like white.

Unlike in the related GLC350e, where it is clear that comfort is the priority over performance, in the C350e, it’s the best of both worlds – more on that later.

The portrait-style 11.9-inch MBUX infotainment system is excellent. The picture quality is clean, and its reaction to input is slick. The wireless CarPlay connection was fine, but I did find that it occasionally lagged in areas with poor reception.

Everything within the unit makes sense, and it’s easy to use while driving without struggling to find anything or repeatedly tapping virtual buttons.

Although the heating and ventilation controls are not accessible via physical buttons, they are always available at the bottom of the screen, making them easy to access when needed.

There are haptic touch buttons for the drive modes, volume, and parking cameras situated just underneath the main screen, which is also handy. 

It would be nice to have some physical buttons; however, where haptic touch controls are present, such as on the steering wheel and the roof for the sunblind, they work well.

The 12.3-inch cluster is also highly customisable, and can be used to display driving data, as well as safety information and maps.

There are four USB-C ports in the front and two more in the back.

The 15-speaker Burmester audio system is a delight, too. The quality is very crisp and clear, providing a good sound no matter where you are in the car.

There is ample space in both the front and second rows for occupants. I had several inches of leg room in front of me when I sat behind the driver’s seat, and I’m around 167cm tall. 

You can fit medium-to-large water bottles in all of the doors, and there are two extra spots in the centre console and two more in the rear centre armrest as well. 

There are map pockets on the backs of the front seats, but they are the hard plastic/retractable kind, which is good for storing documents but not really suitable for smaller items that would likely get squashed.

The C350e has markedly less boot space than the C300 – down from 455L to 315L due to the inclusion of the hybrid battery. It’s still a reasonably sized area for a sedan, and could easily fit plenty of shopping bags, or even a couple of large suitcases. 

The opening is slim, but it is quite deep and runs pretty far back. The location of the battery under the rear bench means that there is no step in the boot, making it easier to load through larger items.

If you do need to fit child seats on occasion, there are two ISOFIX anchor points for the outboard seats, and three top-tether positions accessible from behind the rear headrests.

Comparatively, the A5 Sedan PHEV has 331L of boot space, and the BMW i4 has 470L on offer, while the Lexus ES offers 454L.

The broader Mercedes-Benz C-Class range has a five-star ANCAP result going back to when the new model arrived in 2022, and it covers all variants.

In comparison, the Audi A5 also achieved a five-star result, dating back to 2024, and the BMW i4 received a four-star result from 2022, primarily due to its performance in the safety assist section of testing. The Lexus ES, however, is unrated as its previous five-star rating expired at the end of 2024.

As we’ve all come to expect from a leader like Mercedes-Benz, the C350e is well equipped with a range of upgraded safety features.

As standard, it comes with 10 airbags, road sign recognition, blind-spot monitoring, a 360-degree camera, forward and rear collision warning, and adaptive cruise control.

Also included are driver attention detection, lane-departure warning, lane-keep assist, parking assist, a driver fatigue warning, rear cross-traffic alert, and a rear-seat occupant reminder, among others. 

It features the more advanced Driving Assistance Package Plus, which includes a broader range of driver-assist features, as well as a fingerprint scanner for added security. This package was previously optional but is now included for both the C350e and C300.

During my brief time with the car, I found all the safety systems did their job without taking over or going off relentlessly.

Like the GLC, the latest plug-in hybrid C-Class has a longer electric-only driving range than its predecessors – and by a considerable margin. 

The original C350e had around 30km, which increased to roughly 50km in the C300e. In 2025, the C350e boasts a healthy 104km (NEDC) EV range, which should suffice for most people's daily commute to and from work. However, this is an NEDC measurement that is less stringent to real-world conditions.

Topping up the battery can be done using an 11kW AC charger in around two hours, or 55kW DC fast charging from 0 to 80 per cent can be achieved in roughly 20 minutes. It’s worth noting, however, that you need to pay $1153.90 extra for the ability to fast-charge.

Mercedes includes two cables as standard, one for a wallbox or public chargers, and a three-pin charger for plugging in at home.

Fuel use is claimed to be just 1.5 litres per 100 kilometres, too, but it requires the use of the more expensive 95RON petrol. 

On test, I found it used a considerably higher 5.7L/100km, which is to be expected given that launch conditions do not reflect normal, everyday driving, with a lot of time spent testing the car’s capabilities rather than trying to preserve fuel economy.

The best direct comparison here is the A5, as the only plug-in hybrid, which is claimed to use between 2.1L and 2.7L/100km, with an electric driving range of 87km.

The electric BMW i4 has a claimed driving range of 448km, while the mild-hybrid petrol Lexus ES300h Sports Luxury has a fuel consumption claim of 4.8L/100km.

Powering the Mercedes-Benz C350e is a 2.0-litre four-cylinder turbocharged petrol engine combined with a 19.53kWh battery and a single electric motor to produce a joint output of 230kW/550Nm. Power is sent to the rear wheels through a nine-speed automatic transmission.

The plug-in hybrid C-Class is capable and quick, and more powerful than its petrol C300 counterpart, which makes 190kW/400Nm from the same engine.

Propulsion from a standstill is swift, the C-Class is light on its feet, and there’s no hesitation to get moving, whatever the speed. 

There are four driving modes: Electric, Hybrid, Sport, and Battery Hold.

In Electric mode, the C350e can travel at speeds of up to 140km/h, though it is most effective in urban environments. If you want to preserve the electric-only driving range, you can switch to Battery Hold and run off petrol until you’re ready to use the electric again. It doesn’t feel like it has the instant torque you get in most full EVs, but it’s still responsive enough.

In Hybrid mode, you can hear the engine cut in when you put your foot down and power is transferred over from electric to petrol, but it’s not unpleasant, and the hand-off itself is relatively smooth thanks to a haptic accelerator that helps manage the process.

If you want to hear a more traditional growly petrol sound and a more urgent throttle response, Sport mode is the best fit – it just feels sprightlier.

Regardless of which mode you’re in, the steering is incredibly agile and intuitive. It glides through corners with ease. 

Grip from the Bridgestone Turanza tyres – 225/45 R18s on the front and 255/40 R18s on the back – is good, and the cabin is as quiet as it is in the GLC despite the more performance-oriented rubber, with the exception of when travelling at higher speeds on the freeway when the road noise can be loud.

Equally, the ride is smooth and untroubled by bumps, pockmarks or potholes, even without chunkier tyres because the C-Class features a comfort-focused suspension at the front and self-levelling at the rear. 

As with most electric or plug-in hybrid vehicles, the regenerative braking through the brake pedal can be adjusted to suit your preferences. In the C350e, this is via the paddles on the back of the steering wheel, with four settings to choose from.

The strongest feedback is D-, which is quite forceful. Above that is D, which is markedly less aggressive, and D+, which is just like driving a regular petrol or diesel car. 

The last is D Auto, which adapts the braking to suit the conditions. Although it’s very clever how it adjusts to things like traffic or navigation, I also found it could catch me out at times because I didn’t know what to expect.

For over 30 years, the Mercedes-Benz C-Class sedan has been a popular option in the luxury sedan segment, offering a more compact alternative to its larger E and S-Class siblings.

What’s really exciting for the modern C-Class, though, is price parity. This C350e has the same engine as the petrol version, but it’s more powerful, uses less fuel, and comes with virtually identical high levels of equipment and presentation. But it costs exactly the same. 

And it comes with the same industry-standard five-year/unlimited-kilometre warranty and servicing every 12 months or 25,000km as its internal combustion counterpart.

The question is, why wouldn’t you?