BMW 218i vs Lexus ES350

What's the difference?

The badge might say one thing, but the 2 Series Gran Coupe sticks to the time-honoured template of being a compact yet comparatively practical three-box, four-door sedan, complete with a big boot.

More importantly, it drives and behaves like a BMW – which means sufficient-to-strident performance depending on grade, athletic dynamics and pleasing refinement on one hand, as well as a stiff price and a hard ride on the other.

A true BMW in name and nature, then..

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

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.

BMW is calling the F74 a new-generation 2 Series Gran Coupe, and there have been obvious and even profound changes throughout and underneath, including to some of the sheetmetal.

But this is not an all-new car by any stretch, with the glasshouse, doors and roof amongst many other body items carrying over from the F44.

That now remarkably Kia Cerato-esque nose ushers in new LED lighting motifs and an updated kidney grille, but whether they sit easily with the rest of the car is debatable. Redesigned tail-lights, different colours and new alloys make up the majority of the exterior changes.

Betraying the latest 2 Series Gran Coupe’s newness claims are near-identical dimensions, with that redesigned front end and bumpers contributing to a 20mm increase in the F74’s 4546mm length, while revised suspension and damper settings help account for the 25mm boost in height (to 1445mm). The BMW’s 1800mm width and 2670mm wheelbase remain the same.

There’s a higher level of newness to be found inside.

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.

During the media presentation at its launch, BMW described the 2 Series Gran Coupe as being almost as large as a 1990s E46 3 Series, and it is in all major dimensions except wheelbase.

Plus, being a front-drive-biased/transverse engine proposition instead of rear-wheel drive should make it roomier than the F74’s iconic ancestor.

The sense getting in is that this is certainly not too low or cramped as per a more-traditional coupe, with plenty of space for legs and shoulders, while even the optional sunroof fitted to our 218 left us with headroom to spare.

The redesigned dash is a visual and operational treat, with crisp, clear instruments, a logically presented and intuitive centre display screen offering fast and easy operation, excellent ventilation and ample storage. Full marks here.

Better still, attaining the perfect driving position is possible for most people, on brilliantly supportive front seats. This is the stuff BMW does right.

Improvement suggestions for the next update? Some people may complain about the somewhat less-than-premium feel of some of the lower-lying plastic trim; not everybody will love the swatches of colour stitching (we love it); why does the steering wheel have to be so wide-of-rim? Side and rear vision is restricted by fat pillars, rising shoulder lines and a shallow rear window; and there is quite a bit of road noise that enters the cabin at speed.

Still, even the back seat is sufficiently spacious for most users, with the sole exception of taller folk having to negotiate a sloping rear roofline. If you’re below 180cm, this should be fine. Most amenities minus overhead grab handles are also fitted.

Further back, the boot is surprisingly accommodating, with 430 litres of cargo capacity that’s enhanced by a 40:20:40 split-fold backrest, and the aperture should be big enough for bulkier loads, but the lack of a spare wheel will be bad news for many buyers. The supplied tyre-repair kit is just not good enough.

But, you know what is good enough? The engines BMW builds, that’s what.

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.

Yes, and don’t let anybody tell you any differently. The Luxury lists for $59,888 and the Sports Luxury is $74,888. Both are bargains when you consider the quality and features.

If it was my money, I’d go for the Luxury which is almost indistinguishable visually but doesn’t come with as many tech and convenience features as the Sport Luxury.

Still, the Luxury gets the 12.3-inch screen with sat nav, a 10-speaker Pioneer stereo system with digital radio, a head-up display, dual-zone climate control, wireless charging, 10-way power adjustable front seats, privacy rear windows, a moonroof, proximity key and LED headlights.

The Sports Luxury takes all of that and adds a Mark Levinson 17-speaker sound system, leather seats, heated and ventilated 12-way power adjustable front seats, heated and power reclining rear seats, three-zone climate control, heated steering wheel, power rear sunshade and manual side rear window shades, gesture-open boot and cornering LED headlights.

The Sports Luxury also comes with noise reducing 18-inch wheels – they contain what’s called a Helmholtz resonator which cancels out the drone that can be produced when driving.

Is there anything missing? When I saw the rear fold-down armrest with the control panel I instantly thought the ES300h must have had seat-back screens, but nope. Also, it’s annoying that Lexus still doesn’t have Apple CarPlay and Android Auto as part of its package. This will change we hear, but it has been slow on the uptake.

The Lexus ES300h’s direct rival is the Infiniti Q70 Hybrid GT Premium for $82,900, but it also challenges the likes of Mercedes-Benz E-Class, which starts at $91,900, BMW’s 5 Series, which begins at $92,990, and the Audi A6, which kicks off at $81,900.

Given that the ES300h is hybrid-only, if you’re specifically looking for something with a petrol-electric powertrain, then there’s the BMW 530e or the Mercedes-Benz E350e.

Three F74 powertrain choices are available for Australia in 2025. And none even remotely reflect what their respective badges imply on the boot.

The 218, for instance, is not powered by a 1.8-litre engine, but BMW’s long-lived B38 1.5-litre three-cylinder turbo petrol unit. Making 115kW of power at 6500rpm and 230Nm of torque between 1500rpm and 4600rpm, drive is channelled to the front wheels via a seven-speed dual-clutch transmission (7DCT).

With a kerb weight of 1420kg, the 218 has a power-to-weight ratio of 81kW per tonne, helping it achieve the 0-100km/h sprint time of 8.6 seconds, on the way to a 230km/h top speed.

Not enough? The 220 features the ubiquitous B48 2.0-litre (not a 2.2-litre) four-cylinder turbo petrol engine/7DCT combo, pumping out 150kW at 6500rpm and 300Nm from 1450-4500rpm. Tipping the scales at 1525kg for 98.4kW/tonne, its 0-100km/h time is 7.3s and top speed is 250km/h.

Want more? Stretching to the M235 xDrive sadly doesn’t mean a 3.5-litre in-line six, but a modified B48 2.0L/7DCT duo, delivering 233kW at 6500rpm and 400Nm from 2000-4500rpm to all four wheels. Result? Weighing just 50kg more than the 220, it boasts a heady 148kW/tonne, for a 0-100km/h of just 4.9s and a 250km/h v-max.

As with all of the UKL2/FAAR transverse-engine front-to-AWD platform models from non-electric Minis through to sub-X3/3 Series BMWs, you’ll find MacPherson-style struts up front and a multi-link independent rear end out back.

If you’re reading this outside of Australia, you may notice that none of the current F74 models offer mild-hybrid tech, in contrast to their European counterparts. And don’t go expecting any manual gearboxes either, unfortunately.

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.

OK, so is the 2 Series Gran Coupe cheap to run?

BMW reckons the 218 and 220 will average 6.3 and 6.7 litres per 100km, which means combined average carbon dioxide emissions ratings of 143 and 152 grams/km respectively.

Filling the 49L fuel tank with 95 RON premium unleaded, that translates to around 775km in the 218, and 730km in the 220 between refills.

Predictably, the M235 xDrive uses more, at 7.7L/100km for a CO2 rating of 176g/km. That’s a distance of about 635km.

Over our launch run, which took us from Sydney’s Circular Quay to Wollongong, the 218’s trip meter was reading in the high 8s and about 10 for the M235.

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.

Earlier, we mentioned that the 2 Series Gran Coupe is way more expensive than fine alternative sedans like the Mazda3 and Toyota Corolla.

And while that still stands, there is a remarkable solidity and refinement difference between those and the BMW that helps justify the premium. And nowhere is this more evident than from behind the wheel.

Sat on body-hugging seats and clutching that (too chunky) steering wheel, there is a sense of sporty occasion, backed up by quality trim and an aroma of expensiveness.

For a turbo three-cylinder car weighing 1.5 tonnes, the 218 does a lot with a little, offering spirited off-the-line acceleration and pleasingly lag-free throttle responses at lower speeds. You’d never call it fast, but it is a quick point-to-point urban mover. Only the unavoidable three-pot thrum lets you know you’re in the lowest mechanical spec. And, also, the delay at freeway speeds in building momentum when overtaking.

Which is why, for less than five per cent extra, the 220 with the 2.0-litre four-cylinder turbo would probably make a better buy. Sadly, that isn’t on sale yet in Australia, so we missed out on driving it during the Sydney launch. But in the scores of other BMWs and Minis we’ve tested this in, it’s a cracking little powertrain.

Whether the big leap (nearly $25K worth) to the M235 is worth it depends on how fast you drive and how much you value/need AWD. This is a terrifically muscular machine, since it provides rapid performance via a tidal wave of power, even with the lightest flex of your right foot. On-point and on-brand, this fun and fiery flagship possesses the grand-touring spirit that the rakish design and tech-heavy engineering promise.

To that end, in both the 218 and M235, the steering makes the driver feel connected to the car, resulting in precise and controlled handling. The driver-assist safety tech is beautifully calibrated and nuanced in its intervention, and the brakes are second-to-none.

What is also on-topic for a BMW is the firm suspension, despite the adaptive dampers fitted as standard equipment.

It isn’t stiff or overly uncomfortable, but bumps are certainly always felt, and they’re accompanied by fairly constant road-noise drone over some surfaces.

As such, you’re constantly reminded that dynamic athleticism is the priority here, rather than sumptuous comfort. We’ve experienced much worse from BMW, but a magic-carpet ride isn’t what’s in store for the 2 Series Gran Coupe owner.

So, what’s our verdict then? The 218 is a rorty little tryer that never fails to involve the driver, while the M235 ushers in an elevated level of acceleration, grunt and grip. We suspect that the 220 will be the Goldilocks-zone happy medium.

For (largely) better as well as for (occasionally) worse, these drive and feel like a BMW should.

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.

The Lexus ES300h was awarded the maximum five-star ANCAP rating when it was tested in September 2018. Coming standard on both the Luxury and Sports Luxury grades are 10 airbags, AEB with pedestrian detection, lane keeping assistance and adaptive cruise control.

By stepping up to the Sports Luxury you’ll also get adaptive high beams which is fair enough, but you’ll also gain equipment which really should be on the base grade, too, such as blind spot warning and rear cross-traffic alert - which come standard on a Camry SL for half the price.

While there’s absolutely no doubt the ES300h is safe, it lags behind in autonomous technology which is present in cars such as the E-Class.

You’ll find two ISOFIX mounts and three top-tether anchor points across the second row which we used for our four year old and his car seat.

Here, however, is where BMW can do a bit better.

While the five-year/unlimited-kilometre warranty is where most premium brands are, it falls short of several Asian alternatives. Roadside assistance is for just three years and there is no capped-price servicing.

Service scheduling is also condition-based, meaning the vehicle will alert the driver when a service is imminent. This may not suit everybody, and we always recommend at least every 12 months or 10,000km, just to be on the safe side.

BMW does offer pre-paid service packs that take in basic maintenance for the first five years at $2369 or $3782, including brake-pad replacement, which works out to be about $475 and nearly $760 annually respectively. There is also a cap on mileage during that time frame: 80,000km.

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.