WHEN Mercedes-Benz launched the latest S-Class saloon it was hailed as the best car in the world.

So a trickle down in technology to a smaller model is likely to have sensational results.

That is exactly the case with the new C-Class - a car which is going to transform the executive market.

It is the model which defines Mercedes in Britain, outselling any of its other vehicles by a country mile. It's also a big hitter in the company car market, up against the likes of the BMW 3 Series and Audi A4.

Moving up a league the third generation C-Class is a shot of splendour which for the time being will eclipse all others.

Styled to impress inside and out it is a pure Mercedes in every way looking sporty and potent with luxury appointments - a sea change from the current model.

Despite the move up market the new C-Class will be priced from £26,855 and that is only £395 more than before.

The range kicks off with a two-litre petrol model available in three trims - SE, Sport and AMG Line - and tops out at £31,845.

At launch in June the line up will also include a 2.1-litre diesel engine developing either 170 or 204bhp costing from £29,365.

Later in the year the mix will grow to include a new 1.6-litre diesel and a highly economical diesel hybrid which Mercedes claims is capable of 78.4mpg.

The latest C-Class is packed with flair and is targeting an audience who want to be cool in a premium product.

Inside it has grown to be as big as the last but one Mercedes E-Class and is bang up to date with artificial leather upholstery and a clean cut dashboard complete with seven-inch tablet-style display screen.

New to the C-Class is a touchpad control which allows you to swipe through the system menus or write in commands for the navigation and phone.

There is now a multi-mode drive control allowing the car to be switched from its normal ride and performance settings to sporty or eco driving.

An anti-collision system is standard and can be upgraded to enable the C-Class to drive automatically in stop/start traffic - all the driver has to do is steer.

It can also be fitted with a head up display, a 360 degree camera system and is the only car in this class to offer air suspension.

The options list is so extensive that the C-Class can be fitted out to near limousine grade and still cost less than £40,000.

Overall, the C-Class is a fiesta of design and sets new standards for Mercedes leaving its BMW and Audi rivals in the shade.

On the road the C-Class builds on its strengths with an accomplished ride.

We tried out the C220 diesel and higher powered C250 oil burner as well as getting to grips with the new C300 hybrid.

There is plenty of performance to be had from all three. Rear wheel drive, fine balance and sharp steering are common characteristics and all have a satisfying big car feel.

Stop/start is fitted to every version and while the C220 is the more economical on paper at 70.6mpg with emissions of 103g/km we found the extra work demanded from the 170hp engine less accommodating than the more powerful C250.

The result was we achieved 45.5mpg from the C250 (official fuel return 65.6 and 109g/km CO2) compared to 40.3 from the C220 which was also slightly noisier inside.

The hybrid is a class act and is fitted with the same diesel as the C250 but mated to a 27hp electric motor giving added urge yet much better economy.

We managed to return a splendid 65.6mpg without any trouble which was not far off Mercedes' official figure. Its emissions of 94g/km are incredible for a car of this size and with a price tag in the region of £35,000 it will have huge appeal in the business market.

Smart technology in versions fitted with the top end Comand navigation set up use satellite information to predict the road ahead and optimise performance.

The system can even moderate the car's air conditioning and ventilation to prevent fumes entering the cabin when driving through a tunnel.

At the moment there is nothing which can match the potential of the new C-Class.

It is a breakthrough saloon which is going to have as much impact as when Mercedes introduced the 190 ‘baby Benz' back in 1982.

That was the first Mercedes for the masses, this is a Mercedes that is simply magnificent.