This year’s choice for Car of the Year may not be the flashiest option available. It’s neither a high-performance electric sports sedan from Germany nor the eagerly awaited revival of a 1960s icon. Instead, it represents decades of evolution focused on making it a better vehicle overall — smoother, faster, more fuel-efficient, and more luxurious in a subtle way. It anticipates driver needs without being ostentatious.

This model stands as a reliable option, always ready to meet your needs without excess. For these reasons, the prestigious Golden Calipers have been awarded to what could be deemed the finest midsize luxury car of the 21st century: the 10th-generation Mercedes-Benz E-Class.

Design Progress

The E-Class has often been overshadowed by its larger counterpart, the S-Class, while also feeling the pressure from the smaller C-Class beneath it. In recent generations, this model appeared to blend features from both — drawing from the design of the S-Class while incorporating elements of the more affordable C-Class.

However, the newly redesigned 2024 E-Class, which comes in both sedan and wagon forms, finally establishes its own identity. Its styling unmistakably reflects the Mercedes brand, yet it distinguishes itself rather than appearing as a mere variant. “The sedan’s silhouette is both simple and classy, avoiding any loudness,” remarked guest judge and automotive engineering expert Chris Theodore. “The subtle strakes near the top of the fenders pay homage to the classic Gullwing while enhancing the sedan’s overall length.” Although the wagon shares the same wheelbase and overall dimensions as the sedan, it visually appears longer due to its sleek design features.

While the front and rear designs don’t dramatically change the automotive styling landscape, they represent noteworthy improvements within the Mercedes lineup and offer a glimpse of future designs from Stuttgart. The new headlights pay homage to the brand’s late 20th-century styling and indirectly acknowledge the influential design era of early 21st-century BMWs, which changed the standard for large executive sedans.

Steps were taken to visually connect the new gasoline-powered E-Class with the latest electric models like the Mercedes EQE sedan. The grille’s layout, which features a black surround, was met with mixed reactions, drawing some comparisons to a raccoon’s face. However, the treatment at the rear was executed more successfully, with an LED light bar that links the eye-catching tail lights, effectively tying the rear to the distinctive front design of Mercedes’ most successful car while connecting it with its less popular electric vehicles.

Interior improvements are also prominent. The spacious digital instrument cluster and central infotainment screen create a striking visual experience, all while maintaining a cohesive interior design. We particularly appreciated the thoughtfully designed air vents that seamlessly merge style with function, connecting the left and right sides of the cabin, complemented by elegant floating door handles that enhance storage capabilities. At night, various LED colors combined with the passenger screen’s screensavers make for a stunning atmosphere. The cabin offers a serene experience, especially during highway drives.

From a practical standpoint, the latest E-Class features more user-friendly designs tailored for people and their belongings. The center console now includes a hidden slot for wireless charging and collapsible cup holders, optimizing space for personal items. The back seat area has been expanded due to thoughtful design choices in the front seat backs. Additionally, both the sedan and wagon provide increased trunk space, with the sedan now offering cargo volume comparable to compact SUVs and the wagon matching that of many midsize SUVs.

Outstanding Engineering and Efficiency

The E-Class has adopted a more distinct identity, which has proven beneficial. The previous model was recognized for its versatility and earned the 2021 Car of the Year award, attempting to cater to a wide audience. It included various types like a sedan, wagon, a crossover wagon, coupe, and convertible. This diversity made it tough to achieve perfection, as different designs should ideally perform differently; for instance, a coupe is expected to drive differently than a crossover, and a sedan behaves differently than a convertible. This diversity led to some versions of the E-Class being superior to others.

For 2024, Mercedes has separated the E-Class from coupe and convertible designs, establishing the CLE-Class for those variants. This separation allows the new E-Class to focus better on its main sedan and wagon offerings. The previous E450 All-Terrain model had been in the competition for SUV of the Year; however, Mercedes now correctly categorizes it as a wagon instead of a crossover for the purposes of awards.

The new E-Class has a slightly extended wheelbase, nearly an inch longer than its predecessor, enhancing its stability, ride comfort, and passenger space. Updates to the suspension include integrating springs and dampers into a single system that isolates them from steering inputs, improving noise and vibration control, which is often preferred in coupes and convertibles. The introduction of an upgraded single-chamber AirMatic air suspension further enhances driving quality.

It also incorporates optional four-wheel steering as part of the Technology package for the sedan, allowing the air springs to adjust the spring rate based on road conditions continuously, helping to cushion impacts on the cabin. While this feature isn’t available on the E450 All-Terrain due to space constraints, it has its own optimized AirMatic setup and a higher ride height with an Off-Road mode, providing an impressive 7.0 inches of ground clearance.

These advancements align with updates to two well-known engines. The entry-level E350 sedan now features a 2.0-liter turbocharged four-cylinder engine paired with a new permanent-magnet motor that serves as an integrated starter generator, enhancing efficiency and delivering power more smoothly. This hybrid engine setup generates 255 hp and 295 lb-ft torque, passing power through Mercedes’ standard nine-speed automatic transmission. The E350 is available only with rear-wheel drive, while all-wheel drive can be added for an extra $2,500.

The E450 sedan and All-Terrain utilize a refined 3.0-liter turbocharged inline-six engine coupled with a permanent-magnet mild hybrid system. This setup maintains a power output of 375 hp and 369 lb-ft torque, also utilizing the nine-speed transmission with standard all-wheel drive across all E450 models. We anticipate more engine options as AMG models join the lineup.

With the integration of electric motor assistance throughout the lineup, all new E-Class models can coast with the engine off, replacing internal combustion engine power with the electric motor and recapturing energy while braking. They also feature an improved stop/start mechanism that operates quietly.

As a result of these advancements, the new E-Class is more fuel-efficient than its predecessor, with the E350 rated by EPA at 25/33/28 mpg for city/highway/combined driving. The E450 sedan and All-Terrain wagon achieve a commendable 22/31/25 mpg. Notably, these ratings are not the result of tuning specifically for high fuel efficiency; both E450 models recorded 30 mpg at a steady speed of 80 mph, with the combined average nearly matching that after a day of rigorous driving during our evaluation.

Reflecting the trend in modern vehicles, Mercedes has utilized sophisticated software engineering to enhance its hardware. The latest version of the MBUX user interface is powered by a single high-performance processor, replacing the previous system’s multiple less efficient processors. This change simplifies over-the-air updates for infotainment and enables the addition of third-party applications like Zoom, TikTok, YouTube, and the Vivaldi web browser, all of which are compatible with the E-Class.

Utilizing artificial intelligence developed in-house, the system offers innovative features designed to simplify life for E-Class owners.

Currently, it can provide basic contextual suggestions (like turning on seat massage after a long drive) and certain driver-defined “if this, then that” settings through the Routines apps. For example, you can program the parking cameras on the E450 to activate when approaching a specific high curb.

Or activate heated seats after your gym session. You can also configure the car to turn on cooled seats automatically when outdoor temperatures reach a certain point, or even lower the driver’s window when arriving at a specific gate. Mercedes has announced that future updates will enable its AI to fully automate common tasks, requiring no driver input, and will proactively suggest new routines based on how the car is used and your personal habits.

The infotainment system has undergone a redesign to resemble a smartphone interface, making it user-friendly. Various apps are color-coded according to their functions, and their tiles are larger, making them easier to interact with while driving. Unfortunately, the number of physical buttons has been trimmed down to just a small section below the central infotainment display. Thankfully, these buttons function much better than the haptic “buttons” that Mercedes uses for its steering wheel controls. Overall, our feelings about the MBUX system are mixed. Several judges reported that they spent too much time looking away from the road while using it, and the fact that Mercedes’ voice assistant isn’t capable of engaging in a conversation indicates there is still room for enhancement.

Functionality and Safety Performance

Despite minor gripes regarding certain interior controls and software, the impressive results from the engineering of the new car speak volumes. “Mercedes has been perfecting the E-Class over many years, and it is evident that it has crafted it into an exemplary executive sport sedan,” stated Mike Floyd, director of editorial operations. The focused approach taken for the new E-Class has resulted in one of the most convincing luxury midsize sedans ever, with all components working collectively towards exceptional refinement, precision, and top-tier performance.

The enhanced turbocharged and hybrid I-6 engine in the E450 deserves considerable recognition. While it may not boast extraordinary statistics on paper, the engine operates smoothly and effortlessly, sometimes making it necessary to check the tachometer to confirm that the engine is running. “We could have easily tested the E-Class using the Lexus Champagne glass test,” remarked associate editor Billy Rehbock. “It certainly would have passed with flying colors.” Beyond its idle performance, the E450’s engine delivers power progressively; the electric motor effectively eliminates turbo lag while the nine-speed transmission ensures smooth acceleration.

Although Mercedes was unable to provide a four-cylinder E350 for our Car of the Year assessments, prior experiences suggest substantial improvements compared to the non-hybrid version of that engine. “The E350’s 2.0-liter turbo engine performs quietly and effectively,” wrote technical director Frank Markus in an earlier evaluation of a 4Matic model.

The E-Class’ ride and handling are likewise exceptional. “Kudos to Mercedes for trusting its instincts (and brand identity) in tuning this vehicle,” said deputy editor Alexander Stoklosa. “It’s not sporty—definitely not—but it provides excellent acceleration and capable handling, along with a suspension that maintains just enough control to manage the inherent power without feeling overly stiff. There’s some body roll, but the reward is a smooth ride, well-managed wheel motions, and impressive stability even when pushed hard.”

Both E-Class variations we tested responded sharply to steering inputs, requiring minimal effort but offering ample feedback from the road. While we found no issues with the handling of the E450 All-Terrain, thanks to its four-wheel steering system, it notably felt more agile and responsive in urban areas as well as on winding country roads.

Moreover, the E450 All-Terrain wagon can venture farther off the beaten path compared to the sedan. With its specialized Off-Road drive mode and robust design features, we tested it on the rugged terrain of Hyundai’s proving ground in the Mojave Desert. Despite its low breakover angle and soft underbelly, the All-Terrain navigated areas where many light-duty crossovers might go with ease. It performed exceptionally well over both compacted and loose sand, smoothly climbed a 30-degree concrete incline while lifting a wheel, and effectively distributed power where necessary. “Traction is impressive,” stated Stoklosa. “After maneuvering into a ditch that might need us to scrape off some paint to escape, we reversed the All-Terrain back up a bumpy, potholed incline with minimal wheelspin and no scraping.”

Excellent handling characteristics aren’t exclusive to the wagon—the street-focused E450 sedan also impressed. We were particularly impressed with how both vehicles would “adapt” to tougher terrain during our test drive, marking these areas in the onboard navigation system while providing audible alerts to the driver in advance of arrival.

And let’s not forget one of the most appealing aspects of the E-Class driving experience: there are moments when you can simply relax and not drive at all. While it doesn’t offer Level 3 semi-autonomous capabilities via Mercedes’ new Drive Pilot 95 system (which is currently limited to the S-Class and EQS in Germany), we were impressed by how human-like its Driver Assistance package functions. Combining adaptive cruise control with lane keeping, the new system can automatically change lanes (drivers can also initiate lane changes with the turn signal) and mimic typical driver acceleration and braking behaviors. This means owners can trust a system that efficiently tracks lanes, maintains a smooth flow of traffic without leaving significant gaps, and operates in a way that aligns more closely with their driving habits. Ultimately, this reduces the mental load during long highway trips to simply monitoring the road and keeping a hand on the wheel.

Equipped with features designed to keep drivers and passengers feeling rejuvenated, the vehicle prioritizes comfort on journeys.

In addition to its comfort features, it includes a range of essential active safety technologies. These consist of automatic emergency braking to safeguard occupants while minimizing collision damage and lane-keeping assist, which many test drivers found so unobtrusive they didn’t disable it on twisty roads. The E-Class also boasts a 5-Star overall rating from Euro NCAP for safety. (At this point, neither NHTSA nor IIHS has evaluated the crash safety of the new E-Class.)

Value and Conclusion

Mercedes-Benz is often associated with high costs (hence your postal service’s Metris features a USPS emblem), but the new E-Class is a competitive choice in the luxury midsize sedan market, mainly due to its extensive standard features and driving experience. The base model E350 starts at $63,600, while the E450 is priced at $72,000 and the E450 All-Terrain at $77,250. Although it is more expensive than both the Audi A6 and the latest BMW 5 Series (which we only assessed through its electric variant, the i5), we believe the Mercedes surpasses its rivals with a more cohesive quality.

While the Mercedes-Benz E-Class may not be the most eye-catching choice for our 2025 Car of the Year, it embodies the essence of premium luxury without relying on trends for validation. The E-Class radiates a subtle confidence and efficiency that doesn’t need to show off. It doesn’t seek attention or extravagance but quietly proves its value. Furthermore, it stood out across our six evaluation criteria more effectively than any competitor, which is why it secured the Golden Calipers, marking its second victory in under five years.