About turn: Mercedes-Benz changes its mind and confirms plug-in hybrid C-Class for Australia to challenge the BMW 330e as demand for PHEVs grow
Mercedes-Benz Australia has pulled an abrupt U-turn and confirmed it will go ahead and import the 2025 Mercedes-Benz C350e after all.
Originally, the latest Mercedes C350e had been ruled out for local delivery following a decision by the car-maker to not bring plug-in versions of the C-Class and GLC mid-size SUV Down Under.
That has now changed following a surge in sales for plug-in vehicles.
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According to the Federal Chamber of Automotive Industries (FCAI) saw the number of sales of PHEVs increase by nearly 130 per cent in the first half of 2024.
Mmuch of that growth was due to business buyers snapping out runout deals ahead of the changes to fringe benefits tax (FBT).
However, there is a campaign udnerway to extend the FBT exemption for PHEVs, so it might turn out to be quite a prescient decision by Benz.
Perfectly positioned to be a natural rival for the BMW 330e plug-in hybrid, the latest 2025 Mercedes C350e blends a 2.0-litre turbocharged four-cylinder with a 95kW electric motor to produce 230kW and 550Nm of torque.
With a large 25.4kWh battery, Mercedes claim the C350e comes with a very respectable pure-electric range of 117km on the Euro WLTP test cycle.
It’s thought that following the confirmation it will bring the C350e to market that the German brand will now green light the plug-in hybrid GLC for our market as well.
You can pretty much guarantee there will be no FBT exemption extension for PHEV. The wholesale FBT exemption for both BEV & PHEV has already cost treasury almost double what they predicted when it was introduced. There are few election votes in this as a policy and zero appetite from the Greens to continue taxpayer subsidies on vehicles with internal combustion engines.