The rumors are true, the all-new C63 is no longer powered by a twin-turbo V8. Instead, it now benefits from a plug-in hybrid powertrain complete with an electric turbo for zero lag. Ladies and gentlemen, say hello to the 2023 Mercedes-AMG C63 S E-Performance, and it packs plenty of power despite getting half the displacement and cylinders.

Gone is the 4.0-liter V8 and it has been replaced by the smaller 2.0-liter M139 turbocharged four-cylinder derived from the SL43 roadster launched earlier this year. However, it makes more power in the C63 thanks to an extra boost from the innovative electric turbocharger that delivers zero lag. The engine alone makes an impressive 476 PS along with a whopping 545 Nm of torque.

But since this is a plug-in hybrid (PHEV), it gets a helping hand from a rear-mounted electric motor packed into the rear axle. Powered by a 6.1-kWh battery, the motor generates 204 PS and is coupled to an electronically-controlled limited-slip differential. All in all, the C63 S E-Performance makes a massive 680 PS and a staggering 1,020 Nm of torque.

With all-wheel drive capability and 9-speed automatic transmission, Mercedes-AMG claims the C63 S E-Performance can go from 0 – 100 km/h in just 3.4 seconds, 0.6 seconds, faster than the C63 S with the 4.0-liter twin-turbo V8. Top speed, meanwhile, is rated at 250 km/h but can be raised to 280 km/h depending on customer preference. Helping the sedan brake faster comes courtesy of carbon ceramic discs.

Aside from giving the sedan one heck of a powertrain, the automaker also made sure it can handle all that extra power to the pavement. It gets rear-wheel steering, adaptive dampers, and an AMG Dynamics drive mode selector that allows for various drive and handling settings. There's even a mode to allow for regenerative braking on all four wheels to help the battery recover energy, as well as allow for one-pedal driving much like the Nissan Leaf or Kicks e-Power.

When it comes to body styles, European customers have the choice between the aforementioned sedan and a wagon. However, North American customers will only get the former when it's launched across the pond. As for other markets, the sedan will also most likely be the sole choice while the wagon could be an indent order for those who want a long roof version.

With nearly 700 PS and over 1000 Nm of torque, the C63 S E-Performance just put its closest rival, the BMW M3, on notice. While the Bavarian does make 510 PS and 650 Nm of torque from a 3.0-liter TwinPower Turbo inline-six, Mercedes-AMG just one-upped them with fewer cylinders and gets a helping hand from electrification.

Purists may not be all in favor of what Mercedes-AMG is doing right now, but one cannot deny the performance figures the manufacturer was able to crank out from a 2.0-liter plug-in hybrid with an electric turbo.