Sector: Compact MPV Price: £21,500–£30,050 Fuel: 50.4–78.5mpg CO2: 94–134g/km

Mercedes-Benz can lay claim to founding the premium MPV segment with the original A-Class back in 1998. But, with the latest version of its entry-level model now adopting a more conventional hatchback body, the B-Class has had the segment all to itself for the last two years.

At least, it has until recently. BMW’s 2 Series Active Tourer has doubled the options for corporate buyers wanting more space than a hatchback, but a shorter footprint than an estate car, and the knock-on result is a mid-life sharpening of the B-Class.

Though most of the sheet metal is untouched, there’s a noticeable move to bring the B-Class in line with the widening choice of models on the brand’s small car platform. So the headlights are subtly reshaped and the grille is wider, and the range now includes an AMG Sport trim with the same flared air intakes and large part-polished alloy wheels as the A-Class, CLA-Class and GLA-Class.

There are more hints of the A-Class inside, with a new steering wheel, dials and a larger eight-inch tablet-like display screen perched on the dash top. The Connect Me smartphone app, which allows remote setting of cabin temperature, geofencing, checking of fuel levels, tyre pressures, mileage and location, will also be standard equipment from next Spring.

But the hatchback can’t match the versatility on offer here, with generous headroom all round, and a rear bench which folds flush with the boot floor as well as sliding back and forwards to increase legroom or load space.

Some of the engine range is carried forward from the old car, and it’s the 109bhp 1.5-litre Renault-Nissan diesel that’s still expected to be the biggest selling model in the UK. With the Eco package, offered as a no-cost option on SE models, this now returns 78.5mpg and emits 94g/km – down from 74.3mpg and 98g/km offered by its predecessor. With no Efficient Dynamics model on the equivalent 216d Active Tourer, the B-Class has the edge as a low-carbon premium MPV.

Both of the larger diesel engines are now based on the 2.1-litre four-cylinder unit used throughout the Mercedes-Benz range, offering 136bhp in the B200 CDI or 177bhp in the B220 CDI. It’s a smooth engine in terms of power delivery, and CO2 emissions from 104g/km and economy of up to 70.6mpg in SE spec are impressive, but it’s gravelly under load and the seven-speed dual-clutch gearbox can be over-eager to shift up through its ratios.

However, the most interesting addition to the range is the Electric Drive. Launching as a single-trim variant and priced in line with the B200 CDI automatic in AMG Line trim (after the £5,000 government grant), it features a fully electric 180bhp drivetrain developed with Tesla Motors, including a battery housed in its partial double floor with enough capacity to cover 125 miles on one charge.

Mercedes-Benz isn’t openly predicting sales figures for the new addition, as it’s the first time the brand has offered a fully electric car. But, with pricing only £1,000 higher than the smaller i3, and not significantly more expensive than mainstream-brand electric cars, it’s a unique and versatile offering marred only by the inability to rapid charge for occasional longer trips.

So, while the B-Class is no longer alone in this segment, it’s still putting up a good fight to its new rival. Priced at around £700-£1,000 less than the 2 Series Active Tourer, and with similar fuel efficiency across the core of its range, drivers who need the practicality of an estate and the cachet of a premium badge have two convincing options to choose from.

Verdict:

A versatile choice for young families, the B-Class now has the styling to fit in with the rest of the Mercedes-Benz small car portfolio and a desirable electric option to woo buyers. But opting into the best-looking models can put a real dent in fuel economy.