Prices and specs have been released for the new Mercedes E-Class hybrid.

The E300 BlueTec Hybrid, which boasts efficiency figures of 65.7mpg and 109g/km of CO2, will start at £39,645 on the road for the saloon.

Using an advanced diesel-electric hybrid system in the same style as PSA Peugeot Citroen, the hybrid E-Class will also be available as an estate at a cost of £41,435.

Economy does suffer in the heavier estate though, with fuel consumption at 62.8mpg and emissions increasing to 116g/km of CO2, dropping the estate into the next road tax band and increasing benefit in kind (BIK) costs.

Another caveat is that to achieve the best emissions possible the standard 17-inch alloy wheels need to be replaced with 16-inch no-cost options. Without the change, even the saloon drops into VED band C and increases the associated BIK payments.

The best-case scenario for the E300 Hybrid is a 12% BIK rating, which makes it little more expensive to keep as a company car than many efficient superminis.

Performance figures are far from shabby, with a top speed of 150mph and a 0-62mph sprint time of 7.5 seconds.

The drivetrain brings together the 2.1-litre four-cylinder diesel engine well known from Mercedes' `250 CDI' models with a 20kW electric motor mounted within the seven-speed automatic gearbox. A compact lithium-ion battery feeds the motor and is automatically recharged by the system on the move.

So cleverly integrated into the gearbox is the motor that it adds only 65mm onto the length of the transmission assembly.

The only standard kit that has been defined includes leather upholstery, sat-nav and LED daytime running lights.

Deliveries are to start in November, with order books open now.