Mercedes-Benz launches 1st luxury hybrid model in Japan

TOKYO: Mercedes-Benz Japan Co, an arm of Daimler AG of Germany, released the S-Class hybrid sedan on Thursday, becoming the first foreign automaker to roll out an electric-gasoline model in the Japanese market.

The luxury "S-Class Hybrid Long" is priced at 14.05 million yen and has about 30 per cent better fuel efficiency than its previous model, becoming the first imported car to be eligible for the Japanese government's tax breaks for fuel-efficient cars.

With the Japanese unit of Germany's BMW AG also planning to roll out a hybrid model next summer, foreign automakers are jumping into the heated hybrid race currently being run by Toyota Motor Corp's Prius and Honda Motor Co's Insight.

The S-Class hybrid, which has been available in Europe since June, is equipped with a 3.5-liter gasoline engine and a compact electric motor that is powered by lithium-ion batteries which are lighter than the nickel metal hydride batteries currently used in most hybrid cars.