Perfection. It's an extraordinary target to aim for but, according to Mercedes-Benz's engineering and design elite, it was a benchmark theme during the development of the new C-Class passenger range.

"I'm a perfectionist - that's why Mercedes put me on the project," affirms the car's chief engineer, Christian Fruh.

It's a statement testament to what the C-Class means at Stuttgart headquarters - an intended hallmark of Mercedes heritage and a key plank of how the car maker will be perceived in the future - but also in the way the new vehicle drives.

The previous-generation C-Class yielded more than 2.7 million sales globally since its 2007 introduction, sometimes holding second place for mid-size passenger sales in Australia behind Toyota's Camry. It even displaced the Holden Caprice as the best-selling luxury car model, ahead of the BMW 3-Series (see breakout for details).

Led by Fruh, Mercedes-Benz has spent the past five years - and billions of development dollars - building and finessing the all-new model, amassing hundreds of thousands of testing kilometres in the process.

The result purports to be a product that not only elevates the C-Class blueprint, but moves it into a different paradigm.

In any case, current C-Class owners should look away now. The new model line inherits, predictably, new equipment, safety technology, efficiency and overall refinement over its predecessor.

About 100kg in weight has been shed thanks to a newly developed structure that uses up to 48 per cent aluminium - up from 9 per cent - with an 80mm-longer wheelbase, lowered centre of gravity and a more rigid body for improved ride and handling characteristics. These changes, Mercedes claims, bring a level of structural integrity "unparalleled" when compared with the rivalling BMW 3-Series and Audi A4.

The weight reduction has helped in achieving efficiency gains of up to 20 per cent in some variants.

The new C-Class also scores a more dynamic appearance than the model it replaces, with strong hints to the striking S-Class in the detailing of its bold front end, purposeful body lines and a gently sloping rear. Depending on specified grade (Classic, Avantgarde, Exclusive and AMG line), buyers will get to choose between a soft-nose treatment that aims to provide it with a more sporting air, or a more traditional chromed grille that includes the Mercedes-Benz star on the bonnet and grille louvres that close to minimise drag.

The interior has been thoroughly reworked to suit. A freestanding colour monitor dominates the top half of the dashboard, joined underneath by three stylish circular air vents and a less cluttered switchgear layout.

The sumptuous new look is bolstered by a range of engines designed to accommodate fuel- conscious motorists as much as those with a penchant for performance.

Four powertrains will be initially offered when the C-Class arrives around July – followed by at least another three in due course.

Early allotments will be anchored by the volume-selling C250 running a four-cylinder turbocharged petrol engine with 155kW and 350Nm. It will be joined by the 150kW/500Nm diesel- powered C250 Bluetec, 170kW/ 760Nm (combined) diesel-hybrid 300 Bluetec, and the C400 fitted with a twin turbocharged V6 producing 245kW and 480Nm.

A seven-speed automatic transmission is standard.

All four engines exhibited a happy mix of sportiness, efficiency and refinement during the global C-Class launch in southern France, where Drive was among the first media outlets to sample the new iteration.

Taking off in the 300 Bluetec Hybrid coincided with the sound of silence, its 20kW electric motor shouldering the load in part as we built speed through Marseille’s narrow side streets. The drivetrain is smart and intuitive, even reverting to electric-only mode during a 130km/h descent on a four-lane highway.

A more meaningful prod of the accelerator softly woke the diesel engine to life. After a faint hesitation, the four-cylinder drivetrain offers pleasant and linear forward surge, all the while returning a respectable claimed fuel consumption reading of 3.6L/100km combined on a European cycle.

The C250 Bluetec (which shares the same 2.1-litre diesel as the hybrid) felt less urgent in its acceleration, with a more noticeable diesel grumble and an accentuated hesitation in the lower end of the rev range. But it performed admirably in urban and highway duties, proving the ultra-frugal diesel formula still has its place in modern drivetrains.

The pick of the bunch, in terms of the all-important value versus performance equation, is the new C250 petrol. It offered the effortless attributes of a larger-capacity engine while also exhibiting sharp, turbocharged bursts of power (0-100km/h in 6.6 seconds) and excellent economy (5.3L/100km claimed).

By comparison, the power-laden C400 brings a larger emphasis to the kilowatt count and is the pick for anyone after a more potent package without the excess of the heroic V8-powered C63 AMG, due to be released next year. The C400 conquers the 0-100km/h blast in about 5.5 seconds and then surges with indecent haste to a claimed top speed of 250km/h.

Where the C250’s dual exhaust outlets emitted a subtle blip between gears under hard acceleration, the brutish C400 screamed a wonderfully coarse engine note, adding to the fast-paced excitement.

It was the latter drivetrain that seemed to make best use of the seven-speed automatic, too, with precise, well-timed shifts and evenly-spaced ratios.

Our drive took in the precipitous cliffs of the famous Route des Crates, where the C-Class’ new Airmatic suspension package offered intuitive steering and ride and handling adjustability.

The suspension has been heavily revised, with the front end receiving a new wishbone arrangement that is allied to a new electro-mechanical steering system. There’s an automatic self-levelling feature for improved high-speed stability and added towing ability.

In comfort mode, the steering felt less direct and somewhat soft (particularly off the straight-ahead), but became noticeably more responsive once Sport was selected using the Agility toggle switch.

The low-speed ride of the Airmatic suspension was compliant, even considering the 18-inch wheels fitted. However, it seemed a little floaty at speed.

With help from the accompanying Continental tyres, the C-Class is an adept cornering machine with excellent road-holding and compliancy.

With the Airmatic suspension package likely to be offered as a $3000 option in Australia, the standard steel suspension should be a serious consideration for buyers. It was equally engaging and accommodating, though it offers fewer variables for fine-tuning.

Both suspension grades conquered small imperfection with barely a grumble, with larger obstacles felt but never becoming crashy or disturbing the cabin.

With Mercedes’ claimed aerodynamic benchmark of 0.24 (drag co-efficient) at play, the C-Class is one of the slipperiest and quietest cars on the road. Tyre roar is terrifically insulated even at highway speeds, heightening the cabin’s natural sense of occasion.

For the driver, that feeling extends to the instrument cluster, which has been refreshed with sharper gauges separated by a middle graphic display, plus the option of a head-up display for the first time.

The use of a column-mounted gear shifter and a new electric park brake have freed up space for a large oddment bin and a fingertip-controlled touch pad within the centre console. The accompanying infotainment software is soon to be taken care of by Apple’s CarPlay system, which will begin filtering into Mercedes products at the end of the year. The new systems are decidedly intuitive, but the installed satellite navigation proved to be temperamental at times, and the head-up display system is easily undermined by polarised sunglasses.

Brushed aluminium, piano black and woodgrain inserts were available in the test cars we drove, dependent on choice of grade. Each derivative was tasteful and, with the use of discrete ambient lighting, helped reinforce the elegance of the new design.

In all guises, the C-Class’ stitched leather seats were soft and supportive, and overall cabin packaging and quality raised the bar for this segment. The extended wheel base has helped garner further front and rear passenger space, plus a larger 480-litre boot. However, a puncture repair kit still resides underneath.

Reassuredly for brand purists, Australian models will be shipped from Benz’s factory in northern Germany, one of four centres around the world.

From there the C-Class will inherit the very latest in safety technology, including Distronic Plus – radar based semi-automated traffic jam assistance that operates at speeds under 60km/h and allows the new C-class to follow the vehicle ahead; and Brake Assist Plus – a camera-based system capable of detecting stationary vehicles as well as pedestrians – to provide automatic braking if the driver fails to react.

Together with traditional airbags in front, the new car also offers pelvis bags for the driver and front passenger, a kneebag for the driver, new window bags and sidebags for outer rear seat passengers.

Automated parking, a 360-degree camera and front and rear parking sensors complete the safety suite.

Then are also new tech features, such as the climate control system using GPS to block out pollution in tunnels and congested areas, or the presumably costly option of Burmester surround sound.

It is sum of all these parts, according to Fruh, that helps distinguish the new range from those before it, though he concedes there will always be scope for improvements.

“You have to push the limit,” he says. “We’re never ready to sit down, we’re never done.

Mercedes-Benz C-Class pricing and specifications

Price: From $68,000-$90,000 (estimated) plus on-road costs

Engines: 2.0-litre turbo petrol four (C250), 2.1-litre turbo diesel four (C250 BlueTec), 2.1-litre turbo diesel four hybrid (C300 BlueTec Hybrid), 3.0-litre twin turbo V6 (C400)

Power: 155kW/150kW/170kW/245kW

Torque: 350Nm/500Nm/760Nm/480Nm

Transmission: 7-speed automatic, rear-drive

Consumption*: 5.3L/ 6.6L/ 3.6L/ 8.0L a 100km (claimed average)

*Based on European specification. Australian figures may vary slightly.

Rise and rise of the C-Class

BMW invented the compact luxury sedan class in 1975 and dominated it for the next 30 years.

But the competition between the 3-Series and C-Class has intensified in recent years, and in 2008 the three-pointed star's small sedan overtook its arch-rival in the Australian sales charts.

The swap coincided with the release of the last all-new C-Class midway through 2007, making 2008 the first full year it was on sale.

The Audi A4 has consistently remained behind both of its rivals and has suffered a steady decline in sales since 2009.

The competition between the C-Class and 3-Series has driven both models higher up the medium-sized car segment.

In 2006, the 3-Series was the fifth-best-selling mid-sizer (and the C-Class was seventh) behind the Toyota Camry, Mazda6, Honda Accord Euro and Subaru Liberty.

Since then, both have outsold their mainstream models.

The zenith came in 2012 when the C-Class was the second-best-selling medium car here, beaten only by the fleet-friendly Camry.

The C-Class was the third-most-popular medium car in 2013, behind the Camry and 6, with the 3-Series one spot behind - underlining how popular these compact cars have become.

It is also worth noting that sales of both the C-Class and 3-Series have remained strong, despite both brands expanding into newer and cheaper areas of the market.

BMW has added the cheaper 1-Series, as well as the X1 and X3 SUVs that cross over with potential 3-Series buyers.

It's a similar story at Mercedes, with the addition of the A-Class and B-Class small cars and CLA-Class compact sedan - and the upcoming GLA-Class SUV will further fragment the market at the low end of the luxury car segment.

The plan to take on Audi and BMW

The new C-Class sedan is just the first variant in an expanded family of mid-size models to come from Mercedes-Benz.

The four-door will be followed by replacements for the coupe and wagon, but the German car maker has bigger plans to combat rivals BMW and Audi with a number of niche spin-offs. The company's board member in charge of research and development, Thomas Weber, told Drive the new lightweight underpinnings will spawn ''much more than 10 models, because all the vehicles we have in the C-Class will have successors and, of course, we will add some vehicles to this class''.

''We can do SUVs, coupes, limousines and so on, and some vehicles you don't even know at the moment,'' he said. ''The question is how much of a niche and in which sequence will we meet these niches.''

The first of those models will be a replacement for the company's GLK soft-roader. While the original was not sold in Australia because it was only built in left-hand drive, its successor has been confirmed to arrive in local showrooms next year - providing a competitor to the likes of the BMW X3 and Audi Q5, and filling the gap in Benz's line-up between the coming compact GLA and its popular ML SUV.

Mercedes is understood to also be developing a sportier version of the GLK with a coupe-style roof - reportedly dubbed GLC - to go up against the new BMW X4, as well as a spacious but sleek five-door hatchback that could revive the CLC badge to rival the 3-Series GT and A5 Sportback.

Mercedes-Benz's high-performance division, AMG, will follow suit with a larger family of C63 models, starting early next year with the conventional four-door sedan, which is set to be powered by a new-generation 4.0-litre twin-turbo V8.