Merc's Andy Cowell believes F1 will become a "thinking driver's championship" when the new engine rules come into play in 2014.
As of next season Formula One will be saying goodbye to the V8 engines and swapping to the smaller turbo-charged 1.6-litre V6s.
The new power units will pose several challenges for the teams and drivers not least of which will be fuel management.
The same races on this year's calendar will need to be covered using 50kgs less fuel than at present while still getting a power output of 750hp.
"The quickest strategy for completing a race will be very different to the quickest strategy for completing a lap," said Cowell, the managing director of Mercedes High Performance Powertrains, during a sneak preview of the company's 2014 engine.
"We will be about there in terms of lap time compared to 2013. It's a stretchy target, it's very ambitious, but then this is Formula One.
"It's a competition where the most ingenious engineer will win out, and it will also become a thinking driver's championship to get the most from the car and the available energy."
One of the new aspects to the 2014 unit will be ERS (energy recovery system).
At present the Formula One drivers are given a boost by KERS (kinetic energy recovery system) of 80hp for 6.7secs per lap.
However, next year with ERS combining with KERS they will have an extra 161hp for 33.3secs per lap.
"Today it is difficult to be quick without KERS - for 2014 it will be impossible to go racing without ERS," revealed Cowell.
"New rules showcase advanced technology, encourage technological innovation and put F1 back at the cutting edge of motor sport, which we believe is what the fans want.
"We are putting the motor back into motor sport."
As for concerns that the new V6 will lack the engine noise that goes hand-in-hand with F1, Cowell said the 2014 power unit is "loud, but sweeter sounding.
"I had the privilege of standing in a test cell the first time it was run and I had a big smile on my face.
"The sound is going to be pleasant, with the volume a little lower, but it's not a problem with the direction we are going."