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On its debut, the C-Class was the only Mercedes model with a complete lineup of multivalve engines. The new family of four cylinder petrol and diesel units debuted in the C-Class before extending to the E-Class and the LCV. These ranged from 1.8 L to 2.2 L, with power beginning at 122 PS (90 kW/121 hp). The C 220 D had 95 PS (70 kW/94 hp), a value that was outstanding at the time, achieving over 40 hp/L without recourse to turbocharging. The top of the range was the C 280, with a six cylinder engine, capable of reaching 193 PS (142 kW/190 hp).
In 1994 and 1995, Mercedes introduced a few novelties in the engine range. The first was a supercharged petrol version, the C 230 Kompressor, using a Roots-type supercharger to generate 193 PS (142 kW/190 hp) at 5300 rpm. A new 250 D Turbo was also introduced, with a 20-valve five cylinder engine capable of reaching 150 PS (110 kW/148 hp). But the most important addition was the first genuine performance C-Class, the C 36 AMG, to counter the new six-cylinder BMW M3. Developed with AMG, the tuning house that had now become a subsidiary of Daimler-Benz, it had a racing-tuned suspension (lowered by 25 mm (1 in)) and in the USA, from 1994-1995 a four-speed automatic gearbox followed by a standard five-speed automatic gearbox with Tiptronic function in 1996. The 3.6 L engine had a maximum output of 280 PS (206 kW/276 hp) at 5750 rpm and 385 Nm (284 ft•lb) at 4000 rpm. Top speed was electronically limited to 250 km/h (155 mph). A total of 5200 C 36 AMGs were produced. In 1997, the C-Class was given a small midlife freshening, with new darker rear lights and new wheel rims as well as subtle interior trim changes, especially the door mouldings. Front and rear bumpers also changed in shape for a more modern, even sporty, look. For the first time, the C-Class also received a station wagon, named the T-Modell. The C 220 was transformed into the C 230, with displacement increasing to 2.3 L, retaining the same power, but with torque increased to 220 Nm (162 ft•lbf). In addition, brand new five speed automatic gearboxes were now optional in the whole range.
In 1998, a few other updates made it to the lineup. The European C-Class models received a less powerful C 200 Kompressor model, as well as a V6 engine for the first time, ranging from 2.4 L to 2.8 L. These replaced the DOHC 4-valve heads with new SOHC heads with only three valves per cylinder and twin sparkplugs, theoretically reducing emissions and fuel consumption without sacrificing power (the C 280 in fact had a slight 4 PS increase with the change). AMG developed a new range-topper for the C-Class, the C 43 AMG, powered by a smoother 4.3 L V8, which could now achieve 306 PS (225 kW/302 hp) at 5850 rpm, with a torque of 410 Nm (302 ft•lbf) at 3250 rpm. It was also available as a station wagon. 4200 AMG units were produced, with only 25 C 43 vehicles of the 2000 model year imported to the US. This vehicle bears four gear assembly each side by side to impart better fuel efficiency & performance.
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The first generation W202 C-Class was introduced in 1993, as a replacement for the Mercedes-Benz W201 (190), and proved immensely popular, quickly becoming Mercedes-Benz's best-selling class of vehicles worldwide. Much of its popularity was accredited to the lower pricing point, when compared to other Mercedes-Benz models. The C-Class sedan was the company's entry-level model up until 1997, when Mercedes launched the A-Class supermini. Styling themes were carried over from the previous W201 series, but the new series had a smoother and rounder design than the previous generation of compact Mercedes.