You can’t afford to be mediocre any more –not in India, and especially not in the super-hot compact luxury segment. Since its Indian launch in 2001, the Mercedes C-Class was the automate choice (and for a long time, the only choice) for anyone who wanted in on a slice of entry level German luxury, performance and class. It's been through a facelift and two new engines along the way, but in our comparison test (September 2007), the newer and more modern BMW 3-series and Audi A4 comprehensively beat it.

Mercedes knows this only too well and this third-generation C-classis its answer. On sale in international markets since April, the new C is here not a moment too soon. It's fresh, it looks good and seems to have the requisites to match the luxury car requirement here. Should BMW and Audi be worried?

DESIGN & ENGINEERING

The old C-class was starting to get the reputation of being the preferred mode of transport for gentlemen of a certain vintage, no doubt fuelled by its slightly tired looks. This car simply wipes that slate clean. The old C's soft, organic lines have been stretched to deliver a more bold and confident shape, with strong straight lines dominating. The earlier C-Class borrowed styling cues from the S-class of the time and this car has stolen a few lines from its current big brother as well. The massive slatted grille and the angular headlamps give it formidable road presence and make it look bigger as well. It looks bigger because it is. Larger in every direction than the car it replaces 55mm longer, 42mm wider and 18mm taller - but what's interesting is the wheelbase, up by a not-so-inconsequential 45mm - this helps address one of the earlier C's biggest shortcomings - its poor rear legroom.

Mercedes has had to package in more safety structures and a lot of comfort and refinement- enhancing materials, and this is another reason why the car had to be bigger.

There's nothing revolutionary in the suspension design though. You get conventional MacPherson struts at the front and a multi-link set-up at the rear. But Mercedes is offering trick dampers as standard on this new C. Dubbed the Agility Control suspension, the dampers have the ability to alter the ride depending on road conditions and driving style (see box).Complementing the suspension is the speed-sensitive rack-and-pinion steering that Mercedes claims is six per cent more direct than the old C-class.

And it's obvious that Mercedes is keen to pinch driving enthusiasts from BMW this C boasts of an almost perfect 52.5/47.5 front/rear weight distribution. For India, the C-class comes with a 'rough road' suspension that has been raised and tweaked for our conditions. Also present is an air-con booster package and underbody protection.

INTERIORS

At this level, the C needs to be well equipped and should feel expensive on the inside. Since owners will probably spend as much time in the rear seats as they will behind the wheel, comfort at the rear should be good too.

As far as the quality of the interiors is concerned, the new C-class is a big step up from the outgoing car. General fit and t finish is far improved and the dashboard plastics have a nice, soft feel. Buttons and controls are built with the heft possessed by Mercs of yore, and the dark wood finish and hints of chrome lend an air of elegance to the cabin. After years of lagging behind BMW and Audi, Mercedes has come out with a cabin that can rival the best. However, we do feel the design is a little too conservative and not as fresh as the BMW 3- series.

Comfort and space are also up from the outgoing car. The increased exterior dimensions and longer wheelbase have made the cabin more spacious there's more rear legroom and shoulder room is up as well. The Merc is now a tad wider than the 3-series too, however it is still best to use this car as a four-seater, due to the design of he seats. Rear seat comfort is also clearly better than the old car, with more legroom and better support, but the seat is a bit short on thigh support. And we would have liked the backrest be more reclined; it is a little upright. As for the front seats, they are really comfortable and have adequate thigh support; long stints behind the wheel didn't have any adverse effects on our backs. Visibility is great too, with the slim pillars making it quite an easy car to drive at intersections.

What's really nice about the Mere, however, is the way this car blankets you from the outside world. Shut the doors and he almost church-like serenity s astonishing. Wind and tyre is a noise are minimal and only get audible once you get past 150kph.

And this cabin has all the Merc trademark bits too - the generous front seat travel, the foot-operated parking brake and the single stalk that controls headlamps and wiper functions. Unfortunately, the traditional Mere cost-cutting measures are present as well the seats aren’t fully powered, the mirrors don't fold electrically and the left door mirror is not convex, limiting visibility. Mercedes has even omitted the electric fold for the rear headrests that was present on the outgoing C-class.

ENGINE, GEARBOX & PERFORMANCE

Let’s get the specs out of the way. The 2.2-litre turbocharged common-rail diesel puts out 170bhp and a staggering 41.8kgm of torque from 2000rpm. That's 27bhp and a massive 9.7kgm up on the previous C.

To get to these figures and to improve overall levels of refinement on the engine, Merc has gone to town, fine-tuning its four-cylinder diesel like never before. Up to 90 mods have been carried out on the motor. They lowered the compression ratio to make way for added boost and better smoothness; shorter are used for added punch; and the airflow of the motor has been improved towards this cause as well. Sadly, India doesn't get the 7G-tronic seven-speed gearbox; the normal five-speed auto box is provided instead. But even with this gearbox, the difference in power is immediately noticeable. The new C220 CDI takes 9.3 seconds to get to 100kph - a whole second quicker than the old C's time, and that's a lot. If are wondering why the less powerful and considerably less torquey BMW 320d matches the C220 CDI's performance, it is partly down to the weight of the Mere. It's a full 130 kilos heavier than the BMW and that's a penalty that none of the C's extra torque or clever engineering can overcome. The BMW also has the advantage of a six-speed auto and its considerably shorter gearing helps it in the flat-out sprint.

And while flat-out acceleration has improved, it is overall responsiveness as well as smoothness and refinement that have made the biggest leap forward. This Merc unit is now silky-smooth, probably the smoothest and most refined four-cylinder diesel around, with a tap on the throttle causing the silver needle on the tachometer to jump up instantly.

There is very little turbo-lag and 2000rpm upwards, the motor pulls forward keenly. There is staggering punch available in the midrange and the well-matched gear ratios always drop the engine into this band when you require a sudden burst of power for overtaking, and it's only over the last 500rpm that power delivery flattens out. Compared to this, BMW's 320d sounds noisy and it's not much more responsive either.

While the 7G-tronic would have been the gearbox of choice, the five-speed box acquits itself quite well. It kicks down almost instantly for those quick bursts of power and the shift is quick and pretty seamless as well. Braking is impressive too. Big discs and the usual assortment of safety systems hauls this 1575kg car down straight and true.

RIDE & HANDLING

You wouldn't be too far off the mark if you thought the current C-class was pretty composed and poised. The new C-class takes the game ahead, considerably improving both ride and handling. How does it manage this sleight of hand? The key element is the amplitude-dependant dampers that vary their resistance to the springs in accordance with surface conditions German and loads. So, over a rough road, the dampers are pliant and soft, giving the C-class a pillowy ride quality. Compliance is almost E-class good, and though there is a hint of choppiness over some surfaces, you are generally carried forward on a silent carpet of comfort.

Few rough patches upset the composure of the chassis and this means the car has that much-sought-after Benz blend of good bump absorption and incredible body control. Easily the best ride in its class. Also impressive are straight-line stability and those strong brakes that can bleed speed with little drama.

The new C also offers a lot more driver involvement. Merc has paid particular attention to the steering system that is now is lighter and more direct at low speeds, but delivers quick responses and loads up nicely when the car is cornered. There is an all-new steering rack, forged of high-strength steel for greater rigidity and the speed-sensitive system varies the assistance provided continuously till 200kph.

It also has a very direct ratio and, as a result, steering is delightfully positive and precise. At low speeds, the steering feels light enough to be an electrical unit, and this makes city driving and parking a breeze. The unit does lack some feel into some low speed corners though, especially as you turn in. However, once the suspension is loaded up, the driver gets a lot more feel and a good sense of what is going on. While this is a good compromise, it still can't match or compare with the BMW 3-series' steering and chassis feel when driven hard.

FUEL EFFICIENCY

Despite the increased power output Mercedes-Benz claims an improvement in fuel efficiency. And surprisingly it is – a marginal one – but 9.5 kpl in the city and 12.6kpl in the city and 12.6kpl on the highway is quite good.