Lexus IS300 vs Mercedes-Benz E-Class

What's the difference?

The new-look Lexus IS takes several steps forward over its predecessor - it’s safer, smarter, sharper to look at and still pretty well priced and equipped.

It is feeling its age inside, and the competition has moved on in terms of engines and EV tech. But even so, if I was buying a 2021 Lexus IS, it would have to be the IS350 F Sport, which is just the most fitting version of this car, though the IS300h Luxury does have plenty to like for the money, too.

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.

You either get the Lexus look or you don’t, and I think this latest version is possibly more agreeable than the IS in years gone by.

That’s partly because the brand has finally done away with the odd spider-eyes twin-section headlights and daytime running lights - now there are more traditional headlight clusters, which look a lot more resolved than before.

The front end still features a bold ‘spindle’ grille, which gets different treatment depending on the grade, and the front, to my eye, looks better than before but still very much stuck in its ways. 

At the side you’ll notice the giveaway windowline hasn’t changed, despite the chrome trim line having broadened as part of this facelift, but you can tell the haunches have muscled up a bit, with the new IS now 30mm wider overall, and the wheel sizes are 18s or 19s, depending on the grade.

The rear accentuates that width, with an L-shaped lighting signature now spanning the entire re-sculpted boot lid, giving the IS a pretty tidy rear end design.

Overall dimensions for the IS are 4710mm long, making it 30mm longer nose to tail (on an unchanged 2800mm wheelbase), while it now spreads across 1840mm (+30mm) and is 1435mm tall (+5mm).

The exterior changes really are impressive - I think it is a more purposeful but also more pleasant looking car now than it ever has been in this current generation. 

The interior? Well, there’s not a whole lot to talk about in terms of design changes, aside from the repositioned and larger media screen - which sits 150mm closer to the driver because it’s now a touchscreen with the latest smartphone mirroring tech. Otherwise it’s a carryover affair, as you can see from the interior pictures.

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 interior design of the IS, as mentioned, hasn’t changed dramatically, and it is starting to feel old compared to some of its contemporaries.

It’s still a nice place to be, with comfortable front seats with electric adjustment and heating across all grades, and cooling on many variants, too. 

The new 10.3-inch touchscreen media system is a nice unit, and means you can essentially do away with the silly trackpad system that still resides near the gear selector, so you may still end up bumping it accidentally. And the fact the IS now has Apple CarPlay and Android Auto (though neither are wirelessly connectable) does further its appeal on the multimedia front, as does the standard 10-speaker Pioneer stereo - though the 17-speaker Mark Levinson unit is an absolute blinder!

The centre stack below the media screen retains a CD player, and still has the electromagnetic temperature adjustment sliders as well. That part of the design is dating it just as much as the transmission tunnel console area, which looks a bit out of touch by modern standards, though still incorporates a pair of cup holders and a reasonably large centre console bin with soft armrest padding.

The front doors feature trenches with bottle holders as well, while in the rear doors there is still no drink storage - a carryover annoyance from the pre-facelift model. However, the middle seat in the back doubles as an armrest with pop-out cupholders, and there are rear air vents too.

Speaking of that middle seat, you wouldn’t want to sit in it for long, as it has a raised base and uncomfortable backrest, plus there’s a huge transmission tunnel intrusion eating into leg and foot space.

Outboard passengers also miss out on toe room, which - for my size 12s - is an issue. And it’s hardly the roomiest second row in this class for knee room and headroom, as my 182cm frame was a touch squished behind my own driving position.

Children will be better catered for in the back, and there are two ISOFIX anchorages and three top-tether attachment points for baby seats.

The boot capacity varies on the model you buy. Choose an IS300 or IS350 and you score 480 litres (VDA) of cargo capacity, while the IS300h has a battery pack that robs it of some boot space, with 450L available. 

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.

The engine specs depend on the powertrain you choose. And at a glance there’s no variance between the earlier version of the IS and the 2021 facelift.

That means the IS300 model still runs a 2.0-litre turbocharged petrol motor producing 180kW of power (at 5800rpm) and 350Nm of torque (at 1650-4400rpm). It has an eight-speed automatic transmission, and like all IS models, it is rear-wheel drive (RWD/2WD) - there is no all-wheel drive (AWD/4WD) model here.

Next up the spectrum is the IS300h model, which has a 2.5-litre four-cylinder Atkinson cycle petrol motor teamed to an electric motor and nickel metal hydride battery pack. The petrol engine is good for a 133kW (at 6000rpm) and 221Nm (at 4200-5400rpm), and the electric motor produces 105kW/300Nm - but the combined total maximum power output is 164kW, and Lexus doesn’t provide a maximum torque figure. The 300h model runs a CVT automatic transmission.

The big horsepower offering here is the IS350, which runs a 3.5-litre petrol V6 engine, producing 232kW of power (at 6600rpm) and 380Nm of torque (at 4800-4900rpm). It runs an eight-speed auto.

All models have paddle-shifters, while the two non-hybrid models have seen tweaks to the transmission software that is said to “estimate driver intentions” for better enjoyment. 

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.

There’s still no diesel model, no plug-in hybrid and no full electric (EV) model - which means that while Lexus was at the forefront of electrification with its so-called “self-charging” hybrids, it is falling behind the times. You can get plug-in versions of the BMW 3 Series and Mercedes C-Class, and the Tesla Model 3 plays in this space in full-electric guise.

As for the fuel-sipping hero of this trio of powertrains, the IS300h is said to use 5.1 litres per 100 kilometres on the combined cycle fuel test. In reality, our test car’s dashboard showed 6.1L/100km across a mix of driving.

The IS300 with its turbocharged 2.0L engine is next best for fuel use, claiming 8.2L/100km. On our short launch drive of that model, we saw 9.6L/100km on the dashboard.

And the full-fat IS350 V6 petrol claims consumption of 9.5L/100km, while on test we saw 13.4L/100km.

The emissions for the three models are 191g/km (IS300), 217g/km (IS350) and 116g/km (IS300h). All three are Euro 6B compliant. 

Fuel tank capacity is 66 litres for all models, meaning your mileage range for the hybrid model could be considerably longer.

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.

With the engine at the front and drive to the back, it has the ingredients for a pure driver’s car, and Lexus made a bit of a big deal about the new-look IS being more focused thanks to chassis adjustments and track width improvements - and it does feel a pretty nimble and tied-down car in the twisty stuff. 

It is competent at stitching together a series of corners, and the F Sport models are particularly adept. The adaptive suspension in those models includes both anti-dive and anti-squat tech, which is designed to make the car feel solid and flat on the road - and it does, thankfully without feeling twitchy or uncomfortable, with good suspension compliance even in the most aggressive Sport S+ drive mode.

The 19-inch wheels on F Sport models are fitted with Dunlop SP Sport Maxx rubber (235/40 front, 265/35 rear) and there’s plenty of tarmac tenacity.

The grip from Luxury-spec models on 18s could be better, with those Bridgestone Turanza tyres (235/45 all around) proving not quite the most enthralling. 

Indeed, the IS300h Luxury I drove felt very different in character to the F Sport IS300 and 350 models. It was surprising how much more of a plush-focused model the Luxury grade feels, and likewise it wasn’t as impressive in dynamic driving due to the tyre grip and less-enthusiastic drive mode system. The non-adaptive suspension is a touch more jittery too, and while it’s not to the point of discomfort, you might expect better for a car on 18s.  

Across all models the steering is accurate and direct enough, with predictable response and decent feel to the driver’s hands for this electric power steering setup. The F Sport models have even further retuned steering for “an even sportier drive experience”, though I found at times it could feel a little numb for rapid changes of direction. 

As for engines, the IS350 is still the pick. It has the best zest, and feels the most fitting powertrain for this model. It sounds good, too. The auto transmission is pretty clever, there's easily enough pulling power, and it's probably going to be the last of the non-turbo V6s in Lexus's line-up when this cars life-cycle is up.

The IS300's turbo engine was the most disappointing, lacking some urge and constantly feeling bogged down by turbo lag, transmission confusion, or both. It felt underdone in enthusiastic driving, though in dull day-to-day commuting circumstances it came across as more acceptable, though the remapped transmission software was far less impressive in this application than in the IS350.

The IS300h was a lovely, quiet and refined experience all around. It’s the one you should go for if you don’t really care about all that go-fast stuff. The powertrain is proven, it accelerates with nice linear delivery, and at times it’s so hushed I found myself looking down at the instrument cluster to see if the car was in EV mode or if it was using the petrol engine. 

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.

On paper, Lexus’s ownership offer isn’t quite as enticing as some other luxury car brands - but it has a strong reputation for blissful ownership.

The Lexus Australia warranty period is four years/100,000km, which is better for duration than Audi and BMW (both three years/unlimited km) but not as accommodating as Mercedes-Benz or Genesis, each of which offer five-year/unlimited km warranty.

The company has a three-year capped price servicing plan, with maintenance every 12 months or 15,000km. The first three visits cost $495 each. That’s okay - but Lexus doesn’t offer free servicing like Genesis, and nor does it offer prepaid service plans - for three to five years for a C-Class, and five years for Audi A4/A5, for instance.

There is complimentary roadside assistance for the first three years, too.

That said, the company has its Encore ownership benefits program that allows a number of experiences and deals, and the service team will collect your car and return it, leaving you with a loan car if you need it.

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.