The Mercedes-Benz C-class coupe will cost from £20,290 when it goes on sale next week, with the range topping C230 Kompressor priced £23,250.

Catherine Baker, Mercedes-Benz UK product manager for C-class, described the car as “a hatchback with coupe looks”.

She expects the car to sell around 5,000 in a full year, attracting buyers who can't afford the CLK, which starts at £26,340, and taking conquest sales from BMW 3 Series coupe, Audi A3 and Toyota Celica.

The range includes a diesel model – the 220CDI – which Ms Baker believes will be a unique selling point.

There are two upgrade options: the Evolution, priced £1,750, which includes 17-inch wheels and lowered suspension, and the Evolution AMG, £3,150, which adds body kit and chassis components.

Mercedes will also launch the C-class estate next week, priced from £22,090 for the 180 Classic. Sales are expected to total 4,000 a year.