Mercedes-Benz Japan Co. released the S-Class hybrid sedan Thursday, becoming the first foreign automaker to roll out an electric-gasoline model in Japan.
The S-Class Hybrid Long is priced at ¥14.05 million and gets about 30 percent better fuel efficiency than its predecessor. It is the first imported car to be eligible for government tax breaks for buying fuel-efficient cars.
The model from Mercedes-Benz’ top luxury line, also known as S400 Hybrid, was released in the United States and Europe earlier this summer.
With the Japanese unit of Germany’s BMW AG also planning to debut a hybrid model next summer, foreign automakers are jumping into the heated hybrid race being driven by Toyota Motor Corp.’s Prius and Honda Motor Co.’s Insight.
The S-Class hybrid has a 3.5-liter, V-6 gasoline engine and a compact electric motor powered by lithium-ion batteries, which are lighter than the nickel metal hydride batteries used in most hybrid cars.
The automaker, an arm of Daimler AG of Germany, said the S-Class hybrid is the world’s first to use these batteries, which are installed in the engine compartment to preserve luggage space.
While European automakers have long been more enthusiastic about diesel technology than hybrids, Mercedes-Benz Japan President Hans Tempel said hybrids have become a “buzzword” in Japan.
“From the marketing point of view, it seems to be easier to sell something which can refer to itself as hybrid,” Tempel said at a press conference in Tokyo.
It remains uncertain whether the luxurious line of hybrids will be popular in Japan, which has seen a boom in hybrid sales priced at around ¥2 million.
Even Toyota’s new hybrid-only version of the Lexus sedan, the HS250h, is priced between ¥3.95 million and ¥5.35 million
Luxury and modesty: A Mercedes-Benz S-Class hybrid is shown to the media Thursday in Tokyo as the German carmaker introduces the first foreign-made luxury hybrid to the domestic market, which is dominated by Toyota Motor Co. and Honda Motor Co.

