Mercedes’ Lewis Hamilton and world champion Sebastian Vettel have sensationally retired less than five laps into the Australian grand prix.

Despite starting on pole, Hamilton was overtaken on the straight by both Daniel Ricciardo and teammate Nico Rosberg.

Race and championship favourite Hamilton was given team orders to retire and save the engine but initially failed to pit before quitting after four laps.

Rosberg surged from the grid into the lead over Australian Daniel Ricciardo.

Vettel’s Red Bull Racing car never had the speed to contend with the field, dropping down to 16th before retiring after five laps.

In the congestion around the first bend, Felipe Massa and Kamui Kobayashi tangled and sailed into the gravel trap, ending their races.

It appeared Kobayashi’s Caterham locked up, colliding with the rear of the faultless Massa.