ARE you sitting comfortably? I am. But then I am in the new Mercedes C-Class, voted by readers of Business Car as their Car of the Year and looking a lot like the bigger E-Class and S-Class models from the German premium brand manufacturer.

This is the AMG Line version, too, which means you get and awful lot of kit and some sporty touches that are easy on the eye.

The seat upholstery may be an artificial leather, but it sure feels comfortable and expensive, while the cabin ambience cleverly mixes cool with quality. I feel at once calmed and excited as I slip the steering wheel stalk into Drive mode and listen to the slight diesel rumble gradually fade as the Merc gets into its stride.

The ground-up revamp of this affordable compact executive saloon has resulted in a noticeable step-change, with Mercedes keen to raise the car’s standing in the fiercely competitive small premium saloon market.

And not content with styling the car to compliment the flagship S-Class, Mercedes has lavished the C-Class with comparable levels of equipment. Granted, some of it is optional, but the trickle down effect is evident, with intelligent safety systems and high-end infotainment kit present.

The AMG version tested here came with an extraordinary list of more than 70 standard features and only one optional extra - the special paint finish. At £35,000, you get a magnificent car that, depending on engine size, will both thrill and cosset you.

The new C-Class, with a starting price of £27,270, boasts an engine range with an increased focus on reduced fuel consumption and emissions. Four-cylinder petrol and diesel units dominate, while diesel-electric hybrid power is now available.

With Mercedes keen to ramp up the overall ‘premium’ feel of the C-Class, it’s hardly surprisingly that the new car looks a lot like the current E and S-Class models. The soft curves and uncluttered sheet metal of the C-Class do much to add a welcome sense of occasion.

Crucially there’s more space then before, too. And if you want performance there are always models sporting the AMG badge.

As you’d expect from a car promising an improved ownership experience, the C-Class is a little bigger in all the right places. Cabin space has been boosted thanks to an increase in the car’s wheelbase, and there should be no complaints from adults sitting in the back.

Cabin storage space is also good, what with the ample oddment storage options, while the option of a split rear seat expands the potential of the already capacious boot. It might be a saloon, but the car’s rear can swallow a surprising amount of stuff, while the low load lip ensures heavy or bulky items can be handled with relative ease.

With the accent most definitely on luxury, it’s no surprise that the C-Class driving experience is largely a smooth and refined one. The steering wheel and driver’s seat offer ample adjustment, while all-round visibility is good. Steel springs are the default set-up but, in a class first, you can opt for air suspension, which delivers a plush ride akin to that in the larger S-Class.

Overall economy is up on the preceding models, and the 168bhp C 220 BlueTec oil burner is expected to be the key model for business users.

The engine choice also includes the C 200 BlueTec, which can return up to 72.4 mpg combined, and the C 250 BlueTEC, capable of 0 – 62 mph in only 6.6 seconds.

So there's something of a trade-off here between pace and economy, and the Merc you choose will reflect your priorities.

But will need to pick the more powerful C 250 BlueTec AMG variant (204bhp) - tested here - if you want to hustle the car along at a decent pace. With all cars gaining a driver selectable driving mode control, switching it to Sport helps boost the car’s agility, and should please keen drivers.

In this sector of the premium car market, you have to be at the top of your game to win over or retain customers. The new C-Class has thrown down the gauntlet.

Stats

Mercedes-Benz C 250 BlueTec Saloon AMG Line
Price: £35,510
Engine: 2143-litre four-cylinder diesel with two turbo-chargers producing 204bhp
Transmission: 7G-Tronic Plus seven-speed automatic transmission with direct  select
Performance: 0 to 62mph in 6.6 seconds; top speed 153mph
Economy: 65.7mpg combined
CO2 emissions: 113g/km