Mercedes-AMG has smashed the existing production car lap record at Mount Panorama in Bathurst, with factory driver Bernd Schneider lapping the iconic 6.213km circuit in just 2:16.5s in a road-going 2017 Mercedes-AMG GT R.

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The new benchmark eclipsed the old record by almost nine seconds. The previous record of 2:24.03s was also set by Schneider in 2015 in a Mercedes-AMG GT S.

Schneider set his benchmark time at Mount Panorama on Friday afternoon during the second of two officially timed manufacturer demonstration sessions ahead of this weekend's Bathurst 12 Hour endurance race.

“I love the GT R," said Schneider. "I knew it would be a fast car, but it really feels at home here at Mount Panorama."

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Schneider revealed to CarAdvice he could have gone even faster had a camera mounted inside the car not come loose and distracted him as he was cresting the fearsomely fast Skyline section of the track.

"I would have gone quicker had the camera not come loose and hit me in the head," he told CarAdvice.

Schneider added he reached a top speed of 308km/h down Conrod Straight.

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The Mercedes-AMG GT R is set to become the brand's flagship car when it launches in Australia in July. With a price tag of $349,000 plus on-road costs, the GT R is powered by an uprated version of the 4.0-litre twin-turbo V8 used in numerous AMG models, developing 430kW of power and 700Nm of torque.

All that grunt is sent to the rear wheels via a seven-speed dual-clutch transmission.

Mercedes-AMG is claiming a 0-100km/h sprint in 3.6 seconds, on its way to a top speed of 318km/h.

In December the GT R joined the supercar elite by lapping the iconic Nurburgring race circuit in 7 minutes and 10 seconds, making it quicker around the ‘Ring than the Dodge Viper ACR (7:12), Ferrari 488 GTB (7:21) and the Lexus LFA with Nurburgring Pack (7:14).

The Mercedes-AMG GT R is making its Australian debut at Mount Panorama this weekend.