Lexus ES350 vs Mercedes-Benz E300

What's the difference?

The ES300h is outstanding in terms of ride comfort, refinement and value. If you’re looking for a true driver’s car then a Lexus RCF is probably a better tree to bark up, but if you’re looking to ferry passengers in a serene, prestigious and fuel-efficient way, then look no further.

The E-Class is stacked with kit, looks great, and is an effective and comfortable way to get around in built-up areas or across the countryside.

While it’s not the most dynamically engaging - it’s pipped by its Bavarian rival there - it offers more comfort-oriented features than most, and the cabin is a pleasant place to spend a day driving.

If you're disposed towards stumping up the asking price, the extra outlay for the 'Plus Package' will probably be most relevant to you if you’re covering long distances due to the Airmatic suspension.

Otherwise, even a simple-spec E300 provides a step up from what you might expect from an executive sedan.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

If you think all Lexus models look the same, then pop on over to the Audi, BMW or Benz websites and take a peek at their line-ups. Compared to the ranges from those prestige car makers, Lexus models look wildly different from each other.

Opinions on that ‘Spindle Grille’ are as polarising as views on politics or religion. Personally, I like how upfront and brave the grille design is, but what seems odd to me is that it’s almost as if this was the only place on the exterior where designers were allowed to be a bit adventurous. The rear, while cleanly styled is a bit plain. The bottom just doesn’t match the face.

The ES300h’s roofline in side profile is beautiful as it sweeps almost fastback-style to the boot lid. Again, not the most dramatic styling, but it’s still pleasing in the sense that the design flows well together. The same can be said for the fit and finish – the panel gaps are near-perfect.

This perfection continues into the cabin, where the materials and craftsmanship matches German prestige rivals in places (the door handles, leather and digital instrument cluster, for example), only to be let down in other areas which disclose its budget Toyota family connection (the air vents, steering wheel and display screen).

The ES300h’s interior design isn’t going to set everybody’s world on fire, but there will be those who adore its asymmetrical styling with different textured surfaces that fold, swoop and jut up against each other’s space. Have a look at the images, they’re of the Sports Luxury which sits above the Luxury in the two grade line-up.

The differences visually between the grades is minimal. The Luxury has 17-inch alloys, while the Sport Luxury has 18-inch.

New colours for this generation include Glacial Ecru (the sandy hue of our test car in the images) and Radiata Green. Both grades’ interiors come in a variety of colour schemes, including Black, Chateau, and Topaz. Exclusively for the Sport Luxury cabin is Rich Cream, too. The Sports Luxury steering wheel has wood trim.

One of the more peculiar design elements of the ES300h’s cabin design, and there are a few, are the controls for the drive modes and traction control. They sit like horns on the instrument cluster hood, as though these are things the driver will constantly be reaching for, when in reality most people will never touch the traction control button.

A new-generation car means new foundations, and the ES300h is built on the GA-K platform which underpins the Camry. The platform is part of the latest global architecture which Toyota and Lexus are now using to build its vehicles.

The dimensions of the ES300h, if you’re wondering if it will fit in your garage, are just under 5.0m long, 1.9m wide and 1.4m tall.

Evolution rather than revolution is obvious when it comes to the E-Class’ styling, but that’s in Mercedes’ best interests, because it’s still a good-looking thing, and being a bit subtle is warranted in the executive sedan game.

The biggest changes come in the headlights and tail-lights. Up-front there are now more than one million pixels in the LED headlights, which have adaptive high beam as standard and are more connected to the grille via black trim, as has been seen in EQ electric models.

Underneath, the bumper now features an AMG-style 'A-wing' apron as part of the 'AMG Line' exterior package as standard. A set of 20-inch AMG alloys are also included.

To the rear, and the digital tail-lights feature a Mercedes-Benz star motif, making its lighting signature now more recognisable from behind.

The German Rainbow is well-represented with mostly shades of grey, black, or white available, though 'Verde Silver Metallic' is a slightly retro green, and 'Nautic Blue Metallic' is a subtle and classy tone.

The daring ‘Manufaktur’ shade of 'Patagonia Red Metallic' is a $2500 option, as is 'Opalite White Bright' while 'Alpine Grey Solid' is $2900.

The Lexus ES300h is a five-seater sedan, but it’s really designed to sit two comfortably in the back, given there’s a large driveshaft hump in the floor and that the outboard seats are divided by a fold-down control panel/armrest.

Legroom in the second row is ample. I’m 191cm tall, and I had about 20mm of space between my knees and the seat back when it was in my driving position. Headroom gets tight with that sloping roofline, but there’s just enough space thanks to the low hip point of the rear seats.

Cabin storage is excellent. The fold-down armrest for the rear seats has a storage tray and two cup holders, while the large centre console bin has a lid which can open towards the driver and also to the front passenger (I spent way too long marvelling at how it worked). There are two cup holders up front and decent-sized door pockets, too. Those rear doors open wide for easy exit and entry.

Boot space in the ES300h is 454 litres (VDA), beating the 410-litre cargo capacity of the BMW 530e.

As far as power outlets, you’ll find two USB chargers in the centre console storage bin and a Qi wireless charging pad, which is awkwardly situated making it hard to place larger phones onto it.

Inside, the E-Class should feel familiar to anyone who’s spent time in a recent Benz, though the Superscreen might be the main point of difference. It’s an immediately comfortable place, though, with a relatively visually busy cabin.

The seats and their adjustability mean most drivers and passengers, regardless of height and size, should feel supported (and ideally relaxed), while touch-points are mostly either leather upholstery or digital screens.

The steering wheel, also seen in plenty of other Mercedes models, is a bit of a let-down, however, with its haptic touch pads on a slightly busy two-tier layout. This millennial found it irritating, surely too will the usually older E-Class buyer.

There are a few other small annoyances, one being that the MBUX Assistant sometimes won’t hear a command, or that not everything seems to be able to be controlled by it. The climate control vent positions are electrically adjustable to certain pre-sets through the menu, but the MBUX Assistant isn’t able to do this for you.

And while the driver display and central multimedia screen are fairly user-friendly, it’s not always immediately apparent what the quickest way to find some information or a setting is.

Our test car was fitted with the 'Plus Package', which means four-zone climate control available to the rear seats, which my 180cm-tall self found spacious with plenty of headroom, kneeroom, and even a fair bit of room under the driver’s seat.

Behind the rear seats, there’s a generous 540 litres of boot space, exactly the same capacity as the previous generation E-Class.

While cross-shopping the E-Class and a BMW 5 Series would normally be relatively easy, the Merc’s $131,500 starting price, before on-road costs, puts it plenty north of the base 520i, the only petrol one available, at $114,900. The electric i5 eDrive40 starts from $155,900, more than $20K over the Mercedes.

But the E-Class is stacked with features as standard, and while there are a couple of option packs, Mercedes Australia has tried to streamline the most popular features and specifications into the E300.

Its $131,500 price gets you a tech-heavy sedan with Merc’s latest 'MBUX' system housed in a visually impressive, if perhaps unnecessary, 'Superscreen' dash.

The dual-screen set-up incorporates a main 14.4-inch central multimedia touchscreen and a 12.3-inch display for the passenger, allowing the driver to keep, for example, a map visible while a passenger sorts out media or comfort settings.

The system is also designed to avoid taking users through sub-menus, though can be bypassed by wireless Android Auto or Apple CarPlay.

It also features a selfie camera mounted to the dash, which is disabled for the Australian market at present. Mercedes-Benz Australia hopes to change this soon.

Mercedes also plans to allow the MBUX system to learn what settings and functions will be most useful to the driver under certain conditions, but currently users are able to manually create so-called ‘Routines’ such as setting the climate control and seats to warm up if it’s below a certain temperature, and can even adjust the ambient lighting to a warmer colour.

More automation comes in the brand’s MBUX ‘Hey Mercedes’ system, which can now respond to commands without the driver needing to say “Hey Mercedes”. 

Heated and vented front seats, leather upholstery, wireless phone charging, and a 17-speaker Burmester sound system with Dolby Atmos 4D sound are also standard - the latter being a clever feature that positions different elements of the audio, usually music, to give a 360-degree feeling, as well as turning bassier tones into a physical vibration via “tactile transducers” in each front seat’s backrest. Good for bassline junkies, then (apologies to Mr. Rascal).

With the $9400 'Plus Package', the E-Class also comes with 'Airmatic' suspension and rear-axle steering (which I’ll touch more on later), power-closing doors, 'Urban Guard' to monitor your vehicle while it’s parked, an illuminated grille up front, a more capable version of the MBUX 'Interior Assistant', four-zone climate control and Mercedes’ 'Digital Light' function, which uses the more-than one-million pixels in the headlights to project onto the road or surface in front of you when turning the car off or in driving situations to alert road users of potential danger.

A $6200 'Energising Package' adds multicontour front seats with comfort headrests, upgraded climate controls with 'Air-Balance' and fragrances, upgraded seat heating with armrest heating for the front occupants and heated seats for the rear.

As mentioned at the start of this review, in Australia the Lexus ES is only available with one powertrain variant – a petrol-electric hybrid.

This combines a 2.5-litre four-cylinder petrol engine making 131kW and 221Nm, with an electric motor that has an output of 88kW and 202Nm. The 244.8V nickel-metal hydride battery has been moved from under the boot floor in the previous generation car to under the rear seats, so it no longer eats into the cargo space.

The ES300h isn’t a plug-in hybrid, so battery recharging is done through regenerative braking.

A continuously variable transmission means seamless and smooth low-speed driving using just the motor, but under heavy acceleration the engine activates and you’ll hear that drone associated with CVTs.

This lone E-Class variant is powered by a turbocharged 2.0-litre engine pumping out 190kW and 400Nm, assisted by a 48-volt battery system. Under EQ boost, an extra 17kW and 205Nm is available for a short time.

It’s hooked up to a nine-speed auto that drives the rear wheels, and it’s all pretty traditional… for 2024, that is.

Mercedes says the E300 is able to hit 100km/h in a respectable 6.3 seconds.

This is the point of a hybrid, right? To save fuel? The electric motor can power the car at low speeds around car parks or in bumper-to-bumper traffic, and I found that after 104km of both urban and open road usage my fuel economy in the Sport Luxury was 5.4L/100km.

Lexus’ official combined fuel economy figure for both the Luxury and Sports Luxury is 4.6L/100km.

Mercedes claims the E-Class drinks 7.2L/100km on the combined cycle, and though we weren’t able to test that properly at the pump on the launch program, the trip computer showed up to 9.4L/100km after some quite spirited driving, which gradually averaged out to about 8.6L/100km in the afternoon once some more calm, E-Class-appropriate distance had been covered.

With its 50L fuel tank, the E-Class should theoretically be able to cover 694km on a single tank if the 7.2L/100km is achieved, though realistically it would be much less, 550-600km depending on driving style.

Two words: quiet and comfortable. Well that’s three words, but that sums up the ES300h on the road. Yes, rivals may have intelligent adaptive air suspension and leather made from free range cows, and they are supremely tranquil and sumptuous places, but challenging them is this ES300h.

Even with its regular shock absorbers and steel-spring suspension, the ride was outstanding for its comfort and composure on the worst roads Sydney could throw at it over the week we tested the car.

Front and rear seats were supportive and comfortable over long distances, too. From a driver’s perspective the experience was serene – this was an easy and relaxing car to pilot.

I’m not a huge fan of petrol-electric hybrid powertrains, but it suits the seamless personality of the ES perfectly, adding to the smoothness of the ride as it slipped silently through traffic.

Just don’t expect the ES300h to be rewarding from a dynamic driving perspective. The steering was heavy and a little numb, and while the handling was good, I felt disconnected from the road. And whenever I needed to move quickly the combustion engine would splutter to life and the CVT would begin to drone.

While the E-Class has taken fairly sizeable steps in terms of its tech, it remains a fairly traditional car from behind the wheel, save for a few small changes like its mild-hybrid system and rear-wheel steering.

It’s still a petrol-powered rear-drive sedan, and it feels built more for eating up highway kilometres than it does tackling twisty turns. But that’s okay, because it will still do the latter.

Comfort is the main focus, clearly, for the E300, and the big Merc does it well. We weren’t offered a car without Airmatic air suspension on the launch, but the E-Class doesn’t seem like it would be particularly rough without it.

With it, however, large bumps and minor road annoyances only make their way into the cabin in the sense that you’re aware of them, but not bothered by them.

That slight dulling of feedback does extend to the steering wheel however, where, despite the rear-wheel steering making the car more nimble, the feedback to the driver is less encouraging of eager driving. 

While 190kW on paper doesn’t seem like enough, the E-Class makes do with its meagre engine quite well - and even though it can seem like it’s working a bit too hard at times, the E-Class’ natural state isn’t responding to a planted foot, so it’s unlikely to be a daily bother.

Engine noise, as well as wind and road noise are suitably dulled by the E300’s NVH fitout, too.

The tuning of its drive modes, in particular Comfort and Sport, seemed well-judged on our drive loop, with the option to set the 'Individual' mode to a custom configuration, most elements in Comfort while the drivetrain is set to Sport is particularly helpful when on gentle, high-speed country roads.

If you do start to approach the limits of the big sedan’s capability, it’ll let you know fairly early on. The heavy E-Class isn’t prone to sudden lurching or poor handling, and isn’t much phased by mid-corner bumps.

It’s not as dynamically engaging as some rivals, particularly the 5 Series, but it does appear to be a better provider of cross-country comfort.

ANCAP hasn’t had a go at crash-testing the E-Class yet, and it might not given the relatively small number that will be sold here compared to volume models, but Mercedes’ track record with safety is pretty stellar, and it’s extremely rare for a Mercedes to not cop the maximum five stars.

In the new E300 there are 11 airbags - plenty for a sedan. Mercedes lists front airbags, knee bags and pelvic/thorax airbags for the driver and front passenger, side bags for the rear and a front centre airbag.

It also comes with a fairly extensive suite of safety tech, including the usual ABS, lane-keep assist, blind spot monitoring and surround-view parking cameras.

But on top of that, there’s also ‘Evasive Steering Assist’, semi-automated cruise control with sign recognition, distance assist for following leading vehicles and can even project light arrows onto the road if leaving your lane, when 'Digital Lights' are optioned.

The E-Class also has a function if an imminent collision is detected in which it can, depending on the type of collision, take occupant protection measures. In the case of a side-on collision, the E-Class can “move an affected front occupant towards the centre of the car” before impact.

The ES300h is covered by Lexus’ four-year/100,000km warranty. Servicing is recommended every 15,000km or 12 months. There is no capped-price servicing scheme.

The E-Class comes with Mercedes’ fairly industry standard five-year, unlimited kilometre warranty, though Mercedes-Benz Australia was unable to confirm exact servicing pricing on the launch. 

It does however list pricing for the E-Class on its website for a three-service pack at $3325, four at $4535, and five at $6800, the latter averaging out to $1360 each.

This could increase with the new generation car, and Mercedes doesn’t list estimated serving pricing for new E-Classes yet in its booking system (I checked with one of the test cars).

Servicing intervals are every 12 months or 25,000km, whichever comes first.