It’s a 1.5-liter four-cylinder called the M252, which is related to Mercedes’ larger 3.0-liter straight-six, the M256, but its focus is purely on efficiency. It meets the stringent new EU7 emissions standard, which will be enforced starting in 2026, which aside from exhaust will also take tire and brake emissions into account.

Class lays the groundwork for the automaker’s future, while a hybrid provides a stepping stone for wary customers.

The firm’s smallest saloon will be revealed soon and will compete with BMW’s 2 Series Gran Coupe and Audi A3 Saloon.