Upper class: More features, fewer model grades and higher prices - 2023 Mercedes-Benz GLC arms itself for battle against BMW X3, Lexus NX and Audi Q5

The Mercedes-Benz GLC was, until recently, the top-selling model in Benz’s arsenal in Australia.

No surprises there. It’s a medium sized SUV sold by the most popular premium brand in the country.

More recently it has been overtaken by the still-new C-Class sedan and the larger GLE SUV. Also no surprises given that the GLC was in runout.

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What is surprising is that the new GLC, launched last week, will only be offered in one highly specified model grade - the GLC300 - from launch, at least.

Benz has dropped a number of grades, including a diesel, at least one entry level petrol grade, and the plug-in hybrid. The latter was part of a wider strategy to focus on pure EVs, except when it comes to performance models, like the forthcoming C63 PHEV.

There will be a pair of AMG variants and the swoopy GLC Coupe will also arrive after its reveal. But for now, the GLC300 is your only choice.

According to Mercedes-Benz Cars Australia Head of Media Relations, Jerry Stamoulis, the strategy to slim down model line-ups and focus on value has already worked for the new-gen C-Class.

The Mercedes-Benz GLC was, until recently, the top-selling model in Benz’s arsenal in Australia.

"Our priority has been and always will be to be the leading luxury car in every segment that we play in. Providing we have relevant competitors in that area and that changes depending on lifecycle and overall market conditions," he said at the GLC launch.

"And we have already seen that with C-Class and the popularity of the C300. That was the first model where we went standard AMG Line even though we did have a limited edition at the start with the C200. We learned a lot from C-Class. And we've now made a similar change to GLC and also A-Class."

The C-Class is now only offered in sedan guise across three model grades - C200, C300 and C43 AMG. Similarly, the refreshed A-Class hatch and sedan has dropped a grade but has more features - and a higher price tag - than before.

Mr Stamoulis said the streamlined model lines are part of the company’s wider strategy under an ‘agency’ model, as opposed to a standard dealership model. And part of that is leaving behind base models.

What is surprising is that the new GLC, launched last week, will only be offered in one highly specified model grade - the GLC300 - from launch, at least.

"We're always pushing higher when it comes to luxury. But this strategy complements what we've done with our sales model as well. So transparent pricing, plus stock availability, and a less complex line-up. We're not chasing an entry price to bring people in. We know what people want, and we want to give it to them as a standard."

In terms of the GLC model grades that were dropped for the new-generation car, Mr Stamoulis said they were not significant volume to begin with.

"You can always find a car for someone. But we know what customers have ordered or what they want, (via) feedback from our network. And we're confident that the specification that we've selected for GLC will resonate and we already know it has resonated. The feedback already from the network has been that we've got it right."

The GLC300 starts from $103,370 before on-road costs. That pits it against the likes of the Audi Q5 45TFSI ($82,800), BMW X3 xDrive30i ($97,900), and the Porsche Macan T ($98,700), all of which are cheaper than the GLC.