Diesel relevant to buyers: Mercedes-Benz
By Tim Gibson · 17 Sep 2026
Diesel buyers are still on the agenda for Mercedes-Benz. The German giant has just unveiled its new GLE 350d large SUV in Australia that debuts a new 3.0-litre six-cylinder turbo-diesel engine. It replaces the outgoing 2.0-litre four-cylinder unit in the GLE 300d, boosting performance to 210kW and 650Nm. This more powerful base grade GLE-Class costs nearly $6000 more than the previous model, starting from $142,300, before on-road costs. This means it is cheaper than the base diesel-powered BMW X5, starting from $143,900. More budget-friendly Chinese options are appearing in the Australian market with much cheaper price points and electrified powertrains. Zeekr will soon introduce its 8X full-size SUV that is larger than the GLE-Class, but could be offered for less than $100,000. Australia's diesel demise is in full swing. Diesel-powered car sales are down more than 16 per cent in August 2026 compared to August 2025. For the first time ever in August 2026, there were more fully-electric registrations than petrol and diesel individually. Potential fines under the New Vehicle Efficiency Standard (NVES) are also squeezing diesel-powered choices out of the market. Non-heavy duty diesel-powered vehicles sold in Australia generally fall foul of the emissions regulations, with brands incurring fines on these cars. This will not deter Mercedes-Benz, according to the Australian branch's Director of Sales Johannes Schoen, who said customer demand was driving the decision. “Well, we listen to customers, and obviously, we have a great new drivetrain here (3.0-litre six-cylinder diesel), and I could now talk about all the performance indicators. “On the other side, it's also about the refinement and the drive experience. And I think that new six-cylinder diesel engine will deliver exactly that, and that, I feel, is especially relevant here in Australia.” Schoen also said the brand can offset potential fines for its emissions-heavy vehicles like the GLE 350d with fully-electric sales. The brand now has an extensive range of electric models, with the EQA and EQB small SUVs the most prolific on the sales charts. The pair combine for roughly the same number of sales as the GLE-Class up to August 2026. “Well, we fully understand, and we also support, obviously, the intention of the legislator to contribute to lower CO2 emission values,” Schoen said. “We, as a company, globally speaking now, are obviously trying to support a road to net zero carbon emissions in the future. “Now, having said that big picture, obviously, in the here now, we have a product portfolio that allows us to also manage a very high battery electric share. “So in that sense, this is one product out of our large portfolio, and ultimately, it means, on average, we have to fulfil the legislation, and we will do everything, which is in our power, to go that path.”