BMW 218i vs Lexus IS300

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 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.

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.

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.

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 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. 

The updated 2021 Lexus IS range has seen a number of pricing changes, and a reduction of variants, too. There are now five IS models available, down from seven prior to this update as the Sports Luxury model has been axed, and you can only get the IS350 in F Sport trim now. However, the company has expanded its “Enhancement Pack” strategy across the different variants.

Opening the range is the IS300 Luxury, which lists at $61,500 (all prices listed are the MSRP - not including on-road costs, and are correct at time of publishing). It has the exact same equipment as the IS300h Luxury model, which is $64,500, and that ‘h’ stands for hybrid, which will be detailed in the engines section. 

The Luxury trim is equipped with items such LED headlights and daytime running lights, 18-inch alloy wheels, proximity keyless entry with push-button start, a 10.3-inch touchscreen multimedia system with satellite navigation (including live traffic updates) and Apple CarPlay and Android Auto smartphone mirroring tech, plus a 10-speaker sound system, eight-way power-adjustable front seats with heating and memory settings for the driver, and dual-zone climate control. There’s also auto headlights with auto high beam, rain sensing wipers, power steering column adjustment, and adaptive cruise control.

Indeed, there’s a raft of safety technology included - more on that below - and there’s also a number of Enhancement Pack options.

Luxury spec models can be equipped with a choice of two Enhancement Packs: the $2000 Enhancement Pack adds a sunroof (or moonroof in Lexus speak); or Enhancement Pack 2 (or EP2 - $5500) further adds 19-inch alloy wheels, a 17-speaker Mark Levinson sound system, cooled front seats, high-grade leather-accented interior trim, and a power-operated rear sunshade.

The IS F Sport trim line is available across the IS300 ($70,000), IS300h ($73,000) or the V6-powered IS350 ($75,000), and it adds a number of additional features over the Luxury grade.

As you can probably tell, F Sport models get a sportier look, with a body kit, 19-inch alloy wheels, standard fit adaptive suspension, sports front seats with cooling, sports pedals, and five drive modes to choose from (Eco, Normal, Sport S, Sport S+ and Custom). The F Sport grade also includes a digital instrument cluster with an 8.0-inch display, as well as leather-accented trim, and scuff plates.

Buying the F Sport grade allows customers to add further goodies by way of the Enhancement Pack for that grade, which costs $3100 and includes the sunroof, 17-speaker sound system and rear sunshade.

What’s missing? Well there’s no wireless phone charging in any grade, and no USB-C connectivity either. Note: the spare wheel is a space saver in the IS300 and IS350, but there is only a repair kit in the IS300h as there are batteries where the spare wheel would go.

There’s no go-fast IS F model sitting at the top of the tree here, nor is there a plug-in hybrid to compete against the circa-$85K BMW 330e and Mercedes C300e. But the fact the IS models all come in below $75K means it’s a pretty decent value proposition.

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.

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. 

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.

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.

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.

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. 

Safety equipment and technology has been upgraded for the IS 2021 model range, though it is expected to carry over its existing five-star ANCAP crash test rating from 2016.

The facelifted version scores auto emergency braking (AEB) with day and night pedestrian detection and daytime cyclist detection (from 10km/h to 80km/h) and car detection (10km/h to 180km/h). There’s also all speed adaptive cruise control with low speed following.

The IS also has lane keeping assistance with lane departure warning, lane trace assist, a new system called Intersection Turning Assist which will brake the car if the system judges the traffic gap isn’t big enough, and there’s also road sign recognition.

Plus the IS has blind-spot monitoring on all grades, as well as rear cross-traffic alert with auto braking (below 15km/h).

And beyond that, Lexus has added new Connected Services features, including an SOS call button, automated collision notification if an airbag deploys, and stolen vehicle tracking. 

Where is the Lexus IS built? Japan is the answer.

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.

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.