BMW and Mercedes-Benz face off

The upper-class battle will erupt when BMW lands its new 3 Series with a clear aim of regaining sales from Mercedes-Benz. How clear? Try matching prices and spec to it direct rival as it looks to increase its share in the mid-sized prestige segment.

Mercedes' C-Class is the clear leader in the segment with 5689 sales year-to-date against 3811 for BMW. The segment has fallen by 7 per cent this year, yet the mob with the three-pointed star have held losses to 3.5 per cent against a 16.6 per cent slump for cars with the blue-and-white propeller roundel.

Enter the new 3 Series. The (for now) cheapest model is the 320d diesel which matches the equivalent C200 CDI Mercedes on price at $60,900 and BMW is already promoting about its "class-leading" diesel use of 4.5 litres/100km. Step up to the 328i and it is $1000 cheaper than the closest Merc rival, while the range-topping 335i sedan has had a 15 per cent price cut to $91,900 and now boasts a 16-speaker Harman Kardon sound system and xenon headlamps as standard fit.

All new 3 Series have had features taken off the options list and into the standard kit, with an eight-speed automatic transmission, electric front seats, a stop/start button, dual-zone airconditioning, adaptive cruise control, auto lights and wipers and front and rear parking sensors.

BMW Australia managing director Phil Horton says the new range sets a benchmark for value in the premium mid-sized market.

"The new generation 3 Series Sedan improves upon BMW's reputation for sporty driving dynamics, stylish design, advanced technology and safety, powerful and fuel efficient drivetrains and luxury features," he notes. "But more than anything, with reduced pricing for the range topping 335i and new 328i and a huge increase in standard equipment for the 320d, it offers a substantial improvement in value, both compared with its predecessor and its direct rivals in the market."

The mid-sized market is already cut-throat and that competition will only increase with the newcomers also facing off against Audi in a three-corner fight.

How they compare