Lexus LM 350H vs Mercedes-Benz V-Class

What's the difference?

The Lexus LM is going to be a niche model. This was not designed to appeal to people that may have bought a Toyota Tarago back in the day, or even a Kia Carnival now.

It has a specific purpose for ferrying people around in absolute comfort and at that, it succeeds in a big way.

It’s just a bonus that it’s great to drive.

Welcome to the automotive equivalent of a business class airline suite.

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

The Mercedes-Benz V-Class, and in particular the Mercedes-Benz V220d, lives up to the notion of a luxury people-mover – for the most part. The leaking door is a concern, but may be confined to this vehicle only.

But in most every other way it has the whole prestige bus thing sorted. There is no denying that a more affordable van from a less, shall we say, desirable brand would do just as good a job.

But if you need to be seen to be offering the most luxurious people-mover you can buy in Australia, then you really ought to be looking at the V-Class…. just maybe go for the V250d, if the budget can stretch that far.

Look, people movers are not considered the sexiest of automotive body styles, but that’s changing.

The Kia Carnival and Hyundai Staria are examples of good MPV design.

And the Lexus LM steps it up again. 

It is based on Toyota’s TNGA-K architecture that underpins a bunch of Toyota and Lexus models, including the Lexus RX, and it measures a whopping 5.1 metres long and has a three-metre wheelbase.

It shares its underpinnings with the latest generation Japanese-market Toyota Alphard, which is a cult hit in Australia among the grey import set.

The front-end design is bold, with the latest take on Lexus’ big ‘spindle grille’, pinched slimline headlights and a stubby nose. 

I am a big fan of this design. It is far more than a box on wheels and it has quite a bit of presence. 

The interior design up front is modern Lexus, with a few familiar Toyota touches, and while it’s not exactly minimal, it’s still visually appealing.

This doesn’t look like your everyday Mercedes-Benz commercial van – the V-Class is certainly more at home parked in the driveway of a luxury hotel than alongside the back door in the alley behind it. 

Admittedly it isn’t as attractive as the Avantgarde flagship, but it has the whole Benz ‘family look’ thing going on, with a stylish grille, swept headlights and a streamlined body. A box on wheels it may be, but it’s a box with nicely rounded edges.

The 17-inch, five-spoke alloy wheels are plain, and the halogen headlights and daytime running lights don’t have quite the same wow factor as the LED units in the high-end model, but it wears that Benz badge loud and proud. And the extremely dark tinted rear windows ensure the privacy of your occupants, as well as giving off the vibe of high-end plush.

I know it’s hard to stray from the formula for a van, but I particularly like the back end of the V-Class – it is reminiscent of the original Vito, with low, broad-set tail-lights and a near-flat backside with a huge tailgate, which doubles as an awning to stand under if the weather is a bit Melbourne. 

The interior is typical Benz, or, in the case of the V220d, Benz on a slight budget.

While most of the fun happens in the second row of the Lexus LM, there is a lot to like in the front compartment.

The dash is dominated by a large touchscreen that houses Lexus’ latest multimedia setup. The logical menu and uncomplicated sub-menus ensure this is an easy system to navigate. Speaking of, the in-built sat-nav is one of the better systems I have experienced. 

Comfort isn’t just the domain of the second row - the driver’s seat is very supportive and comfortable, with power adjustment.

There’s plenty of glass including a smaller front quarter window that helps eliminate front blind spots, so forward visibility is exceptional. Rearward visibility is aided by the digital rear-view mirror that is designed to ensure privacy for second and third-row occupants. You don’t want the chauffeur spying on you while you’re sleeping, do you?

The other big tick for me is the driving position. Other people movers, namely the Hyundai Staria and Mercedes-Benz EQV, have very low window lines and it leaves you with a feeling of sitting on the car, rather than in it. I am sure it helps with extra light and it probably makes it easier for kids to see out of, but from a driving perspective, I find it a little disconcerting.

But the LM has flipped that. The front compartment is designed in such a way that it feels like a cockpit that you’re ensconced in. This helps the driver feel more connected with the car, and in the LM it feels like you’re sitting in the driver’s seat of a sporty sedan, not a five-metre bus. Very well done, Lexus.

And now to the main event - the second row.

Where to begin. Let’s start with space. Because there is so much of it. Unsurprisingly given the seating layout, there is an unending amount of head, leg, knee, bum, shoulder and whatever-else room. I can’t imagine anyone complaining about space back there.

Also, getting in and out is a breeze thanks to the sliding power doors on both sides. These can be opened from the front seat, and via several buttons in the rear.

Those captain’s seats are plush. Not quite Benz S-Class plush, but still.

They are adjustable six ways - power adjustable, of course - and they’re heated and ventilated. They recline almost flat, too, if you need a nap on the way to the country estate. And while you do that you can look up through the split sunroof, or close the shade a number of ways.

Is there a massage function? Of course there is a massage function. And it’s not bad. You can choose two settings - weak and firm.

Adding to the feeling of a business class airline seat, there is a fold-out table in the armrest, although it’s a smallish one. And there is dual-zone climate control in the rear.

There is a roof-mounted control panel for things like climate, sunshades and sunroof blinds, but much of this can also be controlled by the Apple iPhone-like devices clipped into both rear seats. These are closer to the seats, so it is easier to access than the roof.

Another function in the device is the Climate Concierge that features different modes - Dream, Relax, Focus, Energise. Depending on which one you choose, it alters the seat settings, massage, climate and lights to suit.

I love the massively wide side windows that are tinted (or privacy glass), too.

Other amenities include map pockets, knee and roof-mounted air vents and a 14.0-inch display screen that retracts from the roof and connects to an HDMI cable, allowing you to watch whatever you want.

The third row is not as appealing as the second. It is technically a three-person row, but the width and the fact that it has a sizeable gap in the centre suggests that this is best thought of as a six-seater van.

The seats are not as plush of course, so you might not want to spend too much time in that row unless you are a small child. But you do get USB-C ports, cupholders, air vents, lights, sunglasses holder, power side shades and grab handles.

Getting in and out of the third row can take a while. It’s all power adjustable, so you don’t have to lift anything heavy - but it takes a while for the second row seats to move forward and up.

With all seats in place the cargo space is limited. In fact, it’s just 110 litres.

That’s similar to what you get in a seven-seat SUV. But it did fit all our overnight luggage easily.

Drop the rear row and that expands to a maximum of 1191 litres in the 350h or 752 litres in the 500h.

All grades have a space-saver spare wheel.

With the optional eight-seat setup, it’d be hard to think of this van as impractical. And if you consider that it also has a boot capacity of 1030L in its most downsized form (and 4630L with the rear seats removed), any argument seems null and void.

The fact the boot is electrically operated, and that it has a separate tailgate glass opening section, and that you can open the boot using the keyfob – not to mention the kerbside door – just adds to the pragmatic appeal of this van.

The six rear seat backs can all be flattened down, and you can tumble them forward, too – the kerbside seats in a one-by-one motion, the driver’s side ones tumble two-at-a-time. It takes a bit of muscle to do those ones.

Essentially you can set it up as a parcel van if you want, or even as a mobile office – the rear seats can be configured to face each other, in ‘conference’ style. But you need to know that this isn’t an easy process, and once you’ve got it set how you want it, you’ll probably end up just leaving it as is.

Loose-item storage isn’t great, but at least the door pockets are large enough for some bottles and documents.

No matter which way you like it, those in the back will have good ventilation (it has a three-zone climate control system with a separate fan controller in the back above the second-row seats), and a decent amount of space. Crucially, there are no cup or bottle-holders, nor any loose item storage in the back two rows – there are mesh nets on the backrests of the very front seats, but that’s it.

If you plan to use this as a mover of smaller people, the V-Class’s child-seat anchor-point game will not disappoint. It has four ISOFIX anchors (two in each row) and six top tether points – yep, every spot in the back!

Up front there’s a problem with the cup-holder situation, too – there are two, but they’re way down on the floor, meaning it’s hard to access your cuppa on the move. In fact, loose-item storage isn’t great, but at least the door pockets are large enough for some bottles and documents. There’s a sunglass holder, too. The little media screen is a bit disappointing in its size, and the Comand controller codpiece that juts out from the centre console can take some getting used to.

Connecting and reconnecting a phone isn’t too difficult (although you have to pair audio streaming separately to phone streaming – which is weird), and there’s no extended smartphone capability such as Apple CarPlay or Android Auto. Using the navigation system is very simple, but the graphics are extremely aftermarket looking – that’s no bad thing, because Benz’s maps always looked a bit 1990s, but these ones are somewhat cartoonish.

There are two V-Class models you can buy;  this newly added V220d variant, at $74,990, or the high-spec V250d Avantgarde, which is listed at $87,200.

That’s a pretty huge difference, especially considering you get plenty of equipment in the lower-spec version. To get a better understanding, let’s list off what’s standard, and what you get if you fork out the extra $12,210 for the top model.

The V220d has a 7.0-inch media screen with Garmin maps, dual USB ports, Bluetooth phone and audio streaming, auto headlights and wipers, DAB+ digital radio, CD, auxiliary and SD input, electric parking brake, electric front-seat adjustment with memory settings, cruise control, colour driver information screen with digital speedometer, black leather trim and sports pedals.

There’s three-zone climate control and velour floor mats up front, too, while parking moves are made easy with the brand’s Active Parking Assist system, which can semi-autonomously park the van for you. Other niceties include front and rear parking sensors, a reversing camera, dark tinted rear glass, heated/folding/auto-dimming side mirrors, and electric side doors and tailgate (with opening glass section).

Stepping up to the V250d sees the addition of a 15-speaker Burmester sound system, ambient lighting (three colours), a higher-resolution 8.0-inch media screen with integrated Wi-Fi hotspot and online access and navigation with live traffic updates, a 360-degree surround-view camera, adaptive cruise control, illuminated door sills in stainless steel, a rear parcel shelf, 18-inch alloy wheels, anodised roof rails, a body kit, chrome exterior trimming, LED adaptive headlights with automated high-beam and LED daytime running lights, and tyre-pressure monitoring.

There’s some separation between the two in terms of engines as well – see below for more detail on that.

And for a little bit of context, there are no other luxury-branded people-movers out there. Buyers may consider alternatives like the Volkswagen Multivan Executive at $83,390 (wait, how much?), but in all honesty, if you can forego the badge and just want space for your money, the Kia Carnival Platinum ($61,290) offers a considerably better value equation.

The car we tested had the optional roof rails ($649) and parking system with surround-view camera ($616) fitted, and was an eight-seat model rather than a seven-seater, which adds $1346 to the price.

There are two hybrid powertrains available. Coming next year, the LM500h combines a 2.4-litre turbocharged petrol engine and a hybrid setup, making for power and torque of 202kW and 460Nm respectively. It is all-wheel drive and is paired with a six-speed automatic transmission.

The LM350h comes with a 2.5-litre naturally aspirated petrol engine and a parallel hybrid system, offering up a total system output of 140kW and 239Nm. The 350h comes in front or all-wheel-drive guise and uses a continuously variable transmission (CVT).

Both the V220d and V250d are powered by 2.1-litre turbo diesel engines, but in differing states of tune.

The V220d has 120kW of power and 380Nm of torque, while the V250d pumps out 140kW and 440Nm. Those figures are decent given the capacity of the engine, and to help keep fuel use down it has stop-start, sadly it’s a bit grumbly and overactive.

Both run seven-speed automatic transmissions and are rear-wheel drive. The Benz vans have strong towing capability, with an unbraked towing capacity of 750kg, while it can deal with braked trailers up to 2500kg.

As you’d hope with an all-hybrid line-up, the LM excels when it comes to combined cycle fuel efficiency. The 350h FWD sips just 5.5 litres per 100 kilometres, while the AWD version is 5.6L/100km. The 500h is a little thirstier at 6.6L. 

Our drive was so brief we did not get to record an on-test fuel figure.

The theoretical range of the LM, considering the 60-litre fuel tank and 5.5L/100km (350h) and 6.6L/100km (500h) fuel consumption figures is about 1000km.

Mercedes-Benz claims that over a mix of urban and highway driving, the V-Class will return 6.3 litres per 100km, no matter whether you choose the V220d or the V250d – which is pretty good given the thing is long (5140mm), wide (1928mm) and relatively heavy (almost two tonnes).

Over a lengthy drive in the V220d – some of it on a twisty mountain road, some in stop-start traffic, most on the freeway – I managed 7.2L/100km. This will rise with added bodies, but not by much.

As mentioned earlier, I spent much more time in the second row as a passenger than I did behind the wheel of the LM350h. But it was enough time to capture some initial high-level drive impressions.

But let’s start in the rear. The ride in the second row is comfortable - as you’d hope. Our trek from Melbourne’s inner north down to the Mornington Peninsula included a lot of freeway, which was smooth. The only thing that disturbed the peace was a chunky bridge join that caused a bit of a thump. But we were hardly disturbed. 

Back in the driver’s seat, there’s a lot to like about how the LM350h drives. First of all, it feels smaller on the road than its ample dimensions would otherwise suggest. It even feels relatively light on the road. 

After the LM, I drove a Mercedes-Benz EQE SUV that has a similar kerb weight (the Lexus is about 2.4 tonnes), and the LM felt lighter.  

The hybrid powertrain is responsive enough, offering decent acceleration from a standing start. The more potent 500h will of course be quicker.

The transition from electric to petrol propulsion is pretty smooth in Lexus (and Toyota) models these days, and the additional noise-deadening materials in the LM ensure it’s subtle.

The 2.5-litre petrol engine is really only noticeable when accelerating hard, and the CVT a slight drone, but it’s in no way unpleasant. 

Otherwise it’s a superbly refined and quiet cabin on all but the absolute worst road surfaces. Whisper quiet power windows adds to that feeling of luxurious refinement.

Given the brief time behind the wheel, we didn’t get to test the handling capability of the LM, so that might have to wait for a review in the New Year. 

The steering is heavily weighted and doesn’t feel overly responsive, but it’s perfectly suited to this sort of vehicle.

That supple ride we experienced in the rear was also evident behind the wheel.

This was especially impressive on a couple of pock-marked peninsular back roads. The ride is also much more compliant than the Mercedes-Benz EQV I tested early in 2023.

My drive saw me chauffeur my partner and our dog down to Cooma, where we then took my parents down the coast. We put the V-Class’s flexible seating to the test, as we had to buy a massive bathtub and bring it back with us. This proved that, although this thing is a luxury van, it can also be a hugely practical delivery van.

The comfort on offer was perhaps the biggest advantage for my passengers – with superb suspension composure, ride comfort and body control, the V-Class is like a big boxy limousine.

It won’t set your heart racing in corners as there’s quite a lot of body roll to contend with, but the steering is direct and very nicely weighted, making for easy progress whether you’re piloting it down a mountain pass or dealing with roundabouts or parking lots. The turning circle is small, which in turn makes the van feel smaller than it actually is.

The brakes can feel a little numb underfoot, meaning you might find yourself pushing a little harder on the pedal than you think you ought to. The response is good, though, even with weight on board.

The extra, effortless grunt of the V250d would be advantageous.

What was a little surprising was a lack of torque at higher speeds for overtaking moves. On a slightly sloping country back road with four adults on board, I expected there to be well and truly enough for a quick overtaking move – but the drivetrain didn’t quite have the grunt to get the job done. At least, not in the Comfort drive mode.

By using the ‘Dynamic’ drive selector and choosing Sport mode, there was extra push on offer – the gearing changed, and so did the throttle response – and that made overtaking moves a little easier. But still, the extra, effortless grunt of the V250d would be advantageous, and I know I wouldn’t like having to play with the drive-mode switch every time I overtook. Just leave it in Sport mode? You’ll pay the price on fuel use. 

Around town the seven-speed auto went about its job really well, offering smooth shifts in all situations. The transmission can clunk when you engage park or shift to reverse, though, which isn’t overly premium, and there is some turbo lag that you’ll have to remember when you prepare to take off from traffic lights. Another thing that didn’t necessarily persuade my passengers of the premiumness on offer was the fact that the kerbside door leaked when it was raining. Not good.

The V-Class has been awarded the highest possible ANCAP crash test score of five stars – it achieved that in 2014, based on a EuroNCAP score that was put through local screening.

It has plenty of safety kit to keep your mind at ease – whether you’re a driver or passenger.

There are six airbags, including full-length curtain coverage, and the V-Class has a reversing camera with dynamic guide lines, an adaptive electronic stability control system (ESP) with load sensitivity and cross-wind assist, rollover mitigation, trailer-sway control (when fitted with a genuine Benz towbar), hill-hold assist, flashing brake lights under emergency braking and driver-drowsiness detection.

There are other handy features, including auto headlights and rain-sensing wipers, auto-dimming interior and exterior mirrors, forward collision warning (not AEB), blind-spot monitoring, lane-keeping assist (but not with steering intervention).

You’ve got spend up to the V250d to get the adaptive cruise control system, but there’s still no AEB on that variant.

When you buy a Lexus, you get a bit more than a car. The brand has a customer loyalty program - Lexus Encore - and depending on what model you buy, you are eligible for some pretty cool discounts, bonuses and experiences. 

There are three tiers, depending on your model. UX, NX, RX and ES fall under regular Encore, and electric models the RZ and UX300e sit beneath Electrified Benefits. But the LM, as well as the LS, LC and LX are under Encore Platinum - the top tier. 

That means access to the ‘On Demand’ program that allows access to another Lexus model for a few days or longer. So if you own an LC Convertible but need an RX for a few days to ferry people around, that’s all free. There’s valet parking service loans and more.

It also includes upgrades at Lexus partners. Our launch took us to Jackalope Hotel on the Mornington Peninsula, which is a Lexus partner, and you can get a bunch of extras here as a Lexus owner that other guests won’t get.

In terms of other ownership details, the LM is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

Lexus is yet to announce the capped-price servicing details for LM, but it is expected to cover five years, and should be in the vicinity of approximately $700 per service.

Mercedes-Benz Vans backs the V-Class with a three-year/200,000km warranty plan, which is good.

The company has also introduced a new capped-price servicing plan for the V-Class, with maintenance due every 12 months or 25,000km, whichever occurs first. The fact the distance intervals are so far apart could be a bonus for business operators, but the costs are high: the first service costs $556, then the following two visits will set you back $1112 each time. Yikes.

A longer capped-price plan with lower prices would make this van a lot more attractive to business owners. A Kia Carnival could make a lot of sense in that regard, too – even business operators get a seven-year/150,000km warranty with a seven-year/105,000km capped-price plan, and the same cover for roadside assist.