2017 Mercedes-AMG E63 revealed with 450kW and a drift mode

Mercedes-AMG has lifted the lid on its newest and most powerful E-Class models ever, the Mercedes-AMG E63 and E63 S.

Both variants run AMG's hand-built 4.0-litre twin-turbocharged V8 engine, now producing 420kW and 740Nm in the E63, and a monumental 450kW and 850Nm in the flagship E63 S. That's more power than the purebred Mercedes-AMG GT R sports car, which makes 430kW and 700Nm.

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A nine-speed auto and Merc's clever 4MATIC all-wheel-drive system is the only drivetrain combination available for managing traction. However, unlike the fixed, rear-biased setup seen in the existing AMG E43, both E63 models get a trickier version with variable torque split that can – and here's the best news for track goers – send up to 100 percent of power to the rear wheels when Drift Mode is selected. The car will remain rear-wheel-drive until the mode is turned off.

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Twin-scroll turbochargers mounted inside the engine’s valley make it even more responsive to throttle input. Peak torque is available from 2500 to 4500rpm, acceleration from 0-100km/h takes 3.4 seconds for the E63 S, and 3.5 seconds for the E63. That shaves more than half a second off the old E63 S’s time.

AMG has developed a cylinder deactivation system that can shut down four of the engine's eight cylinders to make it more fuel efficient.

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Air suspension based on Benz's Air Body Control is standard, although AMG says it has completely reengineered the system for even higher levels of stability and more impressive cornering speeds. It now combines dynamics, steering precision and comfort.

Styling is more muscular and exclusive than regular Mercedes-Benz E-Class models. Everything in front of the windshield is specific to the E63, and incorporates defined design features around the front fascia and bonnet. Flared wheel arches, front and rear, accommodate a wider track and a 20-inch wheel and tyre package.

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“It’s the biggest step we’ve ever made in a generation change,” AMG boss Tobias Moers said.

“In terms of styling, presence of the car, it’s totally different to anything we’re used to. The tyre sizes, drivetrain, suspension, everything.”

Pricing is expected to fall close to the $250,000 mark when the the E63 S, and potentially the E63, arrive in Australia in mid-2017.