Mercedes will launch a rival to BMW‘s tax-beating Efficient Dynamics brand called Blue Efficiency, starting later this year with the C-class saloon.

The first models to benefit from the Blue Efficiency package of technology, which reduces CO2 output and improves fuel consumption, will be the C200 diesel and the C180K saloons.

The 136PS C200 CDI Blue Efficiency model is capable of 55.4mpg, a saving of 5.8mpg over the standard car, and drops the CO2 output to 135g/km from 149g/km.

The petrol powered C180K Blue Efficiency comes in at 156g/km and 43.5mpg, saving around 12% over the standard model.

Green savings have been made by reducing the car’s weight through using lighter alloy wheels, glass and noise insulation materials, as well as low rolling-resistant tyres. A host of aerodynamic tweaks have also been implemented including a smooth underbody tray, lowered suspension and more efficient grille.

As with BMW’s Efficient Dynamics package, Mercedes has incorporated a gear-change display to help the driver use the most efficient gear. However, Blue Efficiency stops short of introducing stop-start technology.

Mercedes will also introduce a more powerful 292PS C350 CGI Blue Efficiency model, but it is undecided if this will come to the UK.

The German brand has yet to confirm exact timing and pricing for the new Blue Efficiency models, but the package of measures is expected to roll-out to other Mercedes models.