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What's the difference?
It might not be as tribal as Ford vs Holden, but there’s a rivalry between BMW and Mercedes-Benz that occasionally becomes more obvious - the launch of the new Mercedes E-Class only months after the BMW 5 Series being one of those times.
But Mercedes has done something different. Instead of multiple variants and electric cars under the E-Class banner, Australia gets just one, the E300.
Is it enough to tackle the big Bavarian sedan in the sales race? We attended the Australian launch just north of Melbourne to find out.
Latest VFACTS new vehicle registration figures show that in 2024 the Toyota HiAce one-tonne van commands more than 46 per cent of the 2.5 to 3.5-tonne GVM segment.
In other words, almost every second new mid-sized van sold in Australia is a HiAce, leaving numerous competitors from Korean, European and Chinese manufacturers to fight over the remaining buyers.
So, why does the only Japanese competitor in this crowded space maintain such dominance? We recently became reacquainted with this venerable workhorse in search of answers.
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.
When you consider its competitive pricing (particularly for fleets), resolute resale value, robust construction, rock-solid reliability, excellent load-hauling ability, five-star safety and all-round practicality, it’s not hard to understand why the HiAce is such a popular workhorse. It’s not perfect, like any van, but when performing its intended role it’s very good.
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.
Toyota’s unwavering adherence to rear-wheel drive ensures the HiAce has an inherent traction advantage over its predominantly front-wheel-drive rivals, particularly when hauling heavy payloads on low-grip surfaces.
Rear-wheel drive also ensures the front wheels can be turned sharply enough for its 3210mm wheelbase to deliver an impressively tight 11.0-metre turning circle. And its 1990mm height also allows access to underground loading docks and multi-storey car parks.
The chassis design is simple and robust with MacPherson strut front suspension, a leaf-spring live rear axle, variable-ratio rack and pinion steering and (on automatic variants) four-wheel disc brakes.
There’s no mesh-type cargo barrier or solid bulkhead between the cargo bay and cabin (but both are also available as genuine accessories) and the black door-handles and unpainted black plastic front and rear bumpers are designed to best withstand the wear and tear often evident in these areas on hard-working vans.
The two-tone dash layout is neat and functional, with clear analogue instrumentation and dash controls (mostly physical dials and buttons) that are easy to reach and operate. And it sticks with a good old lever-type manual handbrake instead of an electric one. All are chosen for their rugged simplicity.
The only useful item missing is a fold-down inboard armrest for the driver’s seat, offered by numerous rivals to reduce neck and shoulder strain during long days behind the wheel.
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.
Our barn-door-equipped test vehicle has a hefty 2245kg kerb weight and 3300kg GVM, which results in a genuine one-tonne-plus payload rating of 1055kg. Up to 120kg of that weight can be carried on Toyota’s triple roof-rack set.
It’s also rated to tow up to 1500kg of braked trailer, which is less than some rivals but in reality should adequately cover most towing requirements of van operators.
And with its 4800kg GCM rating (or how much weight it can legally carry and tow at the same time), that means it can carry its maximum payload while towing its maximum trailer weight. So, that’s a combined total of more than 2.5 tonnes of cargo-carrying ability, which would comfortably meet or exceed most job requirements.
The generously-sized cargo bay, which offers an impressive 6.2 cubic metres of load volume, is accessed from either side through sliding doors with large 1010mm openings, or from the rear through the optional barn doors which can be opened to 180 degrees (with special lower hinges to hold them there) allowing easy access for forklifts.
The cargo bay is 2530mm long, 1760mm wide and 1340mm high and with 1268mm between the rear wheel housings it can swallow up to two standard Aussie pallets or up to three Euro pallets, held in place by a choice of six load-anchorage points.
There’s plenty of internal lighting, the walls and doors are lined to mid-height and the roof features a full-length internal lining, which is unusual for vans and we suspect contributes to suppression of tyre noise emanating from the rear wheel housings.
Cabin storage includes a large bottle holder and bin in the base of each front door, small-bottle/cupholders on either side of the dash and in the centre, plus a single glove box. The well-designed centre console offers another two bottle holders plus large internal storage, which is capped by a hinged lid that multi-tasks as a shallow storage tray and handy work desk.
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.
Our test vehicle is equipped with Toyota’s ubiquitous 2.8-litre four-cylinder turbo-diesel shared by all models in the HiAce range. However, ours is equipped with the optional six-speed automatic and rear barn doors which raises the list price to $51,636.
Even so, that’s still within the ballpark of its closest rivals including the LDV G10+ Barn Door ($40,063), Hyundai Staria Load Barn Door ($46,740), and Ford’s new Transit Trend LWB Barn Door ($57,590).
Our example is also equipped with a solid-walled left-side sliding door (in preference to the standard offering with window), which HiAce buyers can specify at no extra cost when ordering.
The two-seater HiAce comes standard with 'French Vanilla' paint and 16-inch steel wheels with replaceable plastic covers, 215/70R16 tyres and a full-size spare, but there’s no protective load-floor liner for the cargo bay (a Toyota genuine accessory is available).
There’s also halogen headlights and DRLs (no fancy LEDs here, folks) and the neat two-tone cabin has a tilt/reach adjustable leather-accented steering wheel, power-adjustable lumbar support on the driver’s seat, one USB port and two 12-volt cabin sockets, plus a large centre console that offers numerous storage options.
The driver also gets a 4.2-inch driver’s info display and there’s an 8.0-inch touchscreen (plus steering wheel switches) to control the two-speaker infotainment system, which offers multiple connectivity including Apple CarPlay/Android Auto, Bluetooth, digital radio and more.
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.
Toyota’s well-proven 1GD-FTV 2.8 litre four-cylinder turbo-diesel, which also powers Toyota’s HiLux, Fortuna and Prado model lines, produces 130kW at 3400rpm and (in auto models like ours) 450Nm of torque between 1600-2400rpm. Its Euro 5 emissions compliance doesn’t require AdBlue, which minimises maintenance and running costs.
The refined and smooth-shifting six-speed torque converter automatic offers the choice of sequential manual shifting if required. Fuel efficiency is also optimised with full torque converter lock-up on fourth, fifth and sixth gears, along with overdrive on fifth and sixth being ideal for highway driving. The inherent traction advantage of rear-wheel drive is enhanced by an electronically controlled automatic limited-slip diff.
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.
Toyota claims combined average consumption of 7.9L/100km for our test vehicle, but the dash readout was showing 11.0L/100km when we stopped to refuel after 270km of testing.
This was conducted with the engine’s auto start/stop function switched off and comprised a mix of city, suburban and highway driving, of which about one third was hauling a near-maximum payload.
Our own figure, calculated from actual fuel bowser and tripmeter readings, was higher again at 11.8, which still isn’t bad for a vehicle with a kerb weight exceeding 2.2 tonnes driven mostly in busy urban traffic and hauling almost one tonne during our test. So, based on our ‘real-world’ consumption figures, you could expect a driving range of around 600km from its 70-litre tank.
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.
It’s easy for drivers of most shapes and sizes to find a comfortable driving position in the spacious cabin, given its height/reach adjustable steering wheel, large left footrest and supportive seating with power-adjustable lumbar support.
Although there’s a huge blind spot over the driver’s left shoulder created by the solid walls of the cargo bay, active driver aids including blind-spot monitoring, rear cross-traffic alert and rear-view camera minimise the potential hazards of changing lanes and reversing out of driveways into busy traffic.
Braking is reassuringly strong and the steering is responsive, with easy manoeuvrability thanks to the conspicuously tight turning circle and lightness of the variable-ratio steering at parking speeds.
The ride quality is reasonably supple when unladen or lightly loaded and, for a van without a bulkhead between the cabin and cargo bay, has comparatively low internal noise levels at speeds up to 80km/h.
The 2.8-litre turbo-diesel, with its sizeable 450Nm of torque, has strong low-rpm response and displays good flexibility in city and suburban driving.
Its performance is optimised by the smooth-shifting six-speed auto, which also delivers fuel-efficient highway travel that requires less than 2000rpm to maintain 110km/h. The sequential manual-shifting function can be handy in certain situations, like carrying/towing heavy loads in hilly terrain.
To test its GVM rating we forklifted 890kg into the cargo bay, which combined with the driver equalled a total payload of 990kg that was only 65kg shy of its 1055kg limit.
The stout rear leaf-springs only compressed about 30mm under this loading, which left more than 60mm of static bump-stop clearance that was more than enough to ensure there was no bottoming-out on our test route.
The turbo-diesel’s ample torque made light work of hauling this payload in city, suburban and highway driving. It was also particularly strong in the hills, where it easily conquered our 13 per cent gradient, 2.0km-long set climb in third gear.
Engine braking on the way down, in a manually selected second gear, wasn’t as strong but far from disgraced given the near one-tonne payload it was trying to restrain. Even so, its four-wheel disc brakes were more than capable of keeping speeds in check.
Our only criticism is the high internal noise levels at highway speeds, when tyre roar through the rear wheel housings can become intolerable over long distances, particularly on coarse bitumen surfaces with an empty cargo bay amplifying the noise.
In our experience, this is a problem shared by all vans at these speeds if they’re not equipped with a sealed cabin bulkhead. So, if your work involves a lot of highway travel, we would recommend fitting one that's available in Toyota’s genuine accessories range. Or buying some earplugs.
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 HiAce has a five-star ANCAP rating awarded in 2019 which will expire in December 2025. It comes with seven airbags plus benchmark active safety features including AEB with pedestrian and daytime cyclist detection, lane departure alert with braking assist, speed sign recognition, blind-spot monitoring, rear cross-traffic alert, front and rear parking sensors, reversing camera and more.
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.
It is covered by a five-year/unlimited km warranty. Scheduled servicing is a relatively short six months/10,000km intervals, whichever occurs first. Capped-price of $290 per service covers the first six scheduled services over three years or 60,000km.