C-W203

The second generation C-Class was introduced in 2000. The sedan debuted with a range of straight-four and V6 gasoline engines and straight-four and straight-five Diesels. Most of the engines were carried over from the W202, but the C 320 was exclusive, offering 218 PS (160 kW; 215 hp). The diesels now featured common rail direct injection and variable geometry turbochargers. Six-speed manual gearboxes were now standard for nearly the entire range (except the C 320). For the first time, the number designations were no longer equivalent to the engine displacement, more specifically in the C 200 (1.8 L), C 240 (2.6 L) and C 200 CDI (2.2 L).

In 2001, Mercedes increased the range, with the introduction of the new T-Model station wagon and SportCoupé. The Sportcoupé was a three-door liftback made to counter the BMW Compact. Removed from the North American lineup in 2005, replaced by the Mercedes-Benz B-Class in Canada, it continued on sale in other markets. From October 2000 until 2007, a total of 230,000 Sportcoupés were built in the Bremen factory and in Brazil.

In 2003, a new family of supercharged four-cylinder engines debuted, called M271. All of them used the same 1.8 L engine, with different designations according to horsepower levels, including a version powered by natural gas. The 193 PS (142 kW; 190 hp) C 230 K was initially available only in the Sportcoupé (replacing the 2.3 L engine in 2002 and older models). The newer 1.8 L was less powerful but smoother and more efficient than the older 2.3 L (192 PS (141 kW; 189 hp) compared to 193 PS (142 kW; 190 hp). 4MATIC four-wheel drive versions were also offered for the C 240 and C 320.