The heavily upgraded 2026 Mercedes-Benz S-Class has made its world debut, five years after the German automaker’s W223-series flagship sedan was first introduced. This latest iteration boasts significant updates, including a new look and a powerful V8 engine, aimed at maintaining its competitive edge against rivals like the BMW 7 Series and Porsche Panamera.
Mercedes-Benz describes the 2026 S-Class as the most comprehensive mid-cycle update in the model’s history. Over 50 percent of the vehicle’s components, approximately 2700 parts, have been newly developed, updated, or refined. The centerpiece of these upgrades is a brand-new petrol V8 engine, codenamed M177 Evo, produced by AMG. This 4.0-litre twin-turbo engine features a flat-plane crank for improved refinement and efficiency, alongside 48V mild-hybrid technology that includes a 17kW starter-generator to enhance the idle stop/start system.
Powertrain and Performance
In the new S580 model, this engine delivers 393kW of power, an increase of 23kW over its predecessor, and 750Nm of torque, up by 50Nm, within the 2500-4500rpm range. Despite these enhancements, it maintains the same combined fuel consumption of 10.6L/100km. The S580 marks the first flat-plane V8-powered Mercedes-Benz since the 2020 Mercedes-AMG GT Black Series.
Other notable features of the latest S-Class include an optionally illuminated three-pointed star emblem on the bonnet, a 20 percent larger illuminated grille, and new twin-star Digital Light headlights with micro-LED technology. These elements preview the brand’s next-generation lighting signature, adding to the vehicle’s distinct identity.
Market Context and Competition
The S-Class arrives in Australia in the fourth quarter of this year. In 2025, the existing S-Class found 80 new homes in Australia, slightly trailing the Porsche Panamera, which sold 82 units. However, the flagship sedan’s local popularity has waned significantly since 2000, when the W220 S-Class attracted 660 buyers. This decline is largely due to a shift in consumer preference towards luxury SUVs like the Mercedes-Benz GLS, which sold 685 units in 2025, and the BMW X7, which achieved 1125 sales.
Additionally, the S-Class may face internal competition from Mercedes-Benz’s upcoming VLE electric people mover, expected to offer limo-like luxury and comfort. However, Mercedes-Benz Australia spokesperson Monika Paikert emphasized that the VLE remains unconfirmed for the Australian market. Despite the shift towards SUVs, Paikert noted that the S-Class “remains the flagship of the Mercedes-Benz portfolio and a core expression of our brand.”
“While in general customer preferences may shift towards SUVs, we are seeing sustained demand for the S-Class with sales in Australia increasing in 2025 compared to the previous year,” said Ms. Paikert. “This reinforces that the luxury sedan remains highly relevant and desirable within our lineup.”
Design and Technological Innovations
Visually, the updated S-Class retains its stately elegance, contrasting with the sci-fi edginess of competitors like the BMW i7. The larger illuminated grille, adorned with three-dimensional chrome stars, and the new Digital Light twin-star headlight design enhance the vehicle’s visibility and identity. At the rear, redesigned tail-lights with three chrome-framed signature stars reinforce the S-Class’s distinctive look.
The S-Class introduces several technological advancements, including a dynamic Ultra Range high-beam system with a reach of up to 600 meters. This system swivels for optimal coverage and uses partial high-beam functionality to improve the detection of poorly lit road users without causing glare. The cornering light function adapts more precisely to road layouts, thanks to in-house software integrated into the Mercedes-Benz Operating System (MB.OS).
Luxury and Comfort Features
The updated S-Class continues to offer a luxurious experience with standard Airmatic air suspension and optional E-Active Body Control with intelligent damping. A rear-axle steering system enhances both low-speed agility and high-speed stability, with the capability to turn the rear wheels by up to 10 degrees.
Safety remains a hallmark of the S-Class, with an enhanced adaptive restraint system and up to 15 airbags. The interior offers a business lounge atmosphere in the long-wheelbase model, featuring exquisitely sculpted seats and premium amenities. A full-length rear center console provides convenient storage, wireless charging, and temperature-controlled cupholders.
The S-Class also debuts optional 20-inch multi-spoke alloy wheels, crafted using high-pressure casting technology. These rims are distinguished by their sharper contours and a striking 50-cross-spoke design, adding further visual differentiation.
Advanced Technology and Personalization
Inside, the driver and front passenger interface benefit from the MBUX Superscreen and the latest-generation MB.OS, which includes the AI-based “Hey Mercedes” Virtual Assistant and MBUX Surround Navigation based on Google Maps. The system connects all vehicle functions into one intelligent ecosystem, enabling over-the-air software updates.
The S-Class offers an extensive range of personalization options through the Manufaktur customization program, allowing buyers to choose from exclusive paint finishes, luxurious leather packages, and handcrafted details. The newly launched Manufaktur Made to Measure program enables customers to create a unique vehicle with over 150 paint colors and 400 interior colors.
Additional equipment options include illuminated door sills, a variety of steering wheel variants, and emblem packages. The Manufaktur Made to Measure team evaluates requests for further customization during personalized consultations.
With these updates, the 2026 Mercedes-Benz S-Class aims to reaffirm its position as a leader in the luxury sedan market, combining cutting-edge technology with timeless elegance and unparalleled comfort.
