BMW 218i vs Mercedes-Benz EQE

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 Mercedes-Benz EQE350 4Matic is an electric sedan that will comfortably house your family. My son really liked this one, the ambient lighting in particular!

It has enough power to satisfy the drivers out there and a driving range that will make you feel at ease. But the boot is small and this car will suit families whose kids are out of the pram stage best. I really like the safety and standard features on the EQE but the ongoing costs are a bit expensive for an EV.

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.

Love it or leave it, the swoopy design of the EQE sedan is decidedly modern with a shiny black grille that features a repeated Mercedes-Benz star motif and the aerodynamic covers on the 20-inch alloy wheels.

The nose is snubby and dips down too low for it to look sexy but the rear earns some design points with its elegant proportions, 3D ‘helix’ LED lights and cute spoiler.

The chrome accents around the windows and the illuminated flush door handles add some pizzazz, too.

I’m not a massive fan of its exterior looks but the interior is gorgeous! The dashboard features an 12.8-inch touchscreen multimedia system and a 12.3-inch digital instrument panel that pull your focus with their crystal-clear graphics but they need to, because the dashboard has a whole lotta empty space which looks a tad boring.

The side air vents are styled like jet turbines but are a little finicky to manoeuvre.

The black suede-like headliner creates a plush aesthetic but when you open the panoramic sunroof, the cabin is downright airy.

The door panels, which double as a grab handle, house the window and side mirror controls and its super handy to have the seat-configurator and memory functions on the door itself, rather than the side of the seat. This positioning makes them much easier to see!

Mercedes has added LED ambient-strip lighting around a lot of the interior, including the front seats, which has a massive wow factor at night time.

The ambient lighting can be adjusted up to 64-ways and also features a dynamic element where the lights pulse (under certain selections) when you accelerate. 

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.

Mercedes uses the term ‘saloon’ for its sedans and this term highlights the space each passenger will enjoy in the EQE sedan! There is plenty of head and legroom up front and you don’t feel like you’re on top of your co-pilot, either.

The electric front seats are comfortable with their adjustable lumbar control and extendable under-thigh support. The kinetic function on both also make longer journeys an absolute pleasure.

The rear seats are well-padded and you get limo-like legroom but the swoopy roofline does cut into the headspace. I’m comfortable enough with my 168cm (5'6") height but someone with a few inches over six-foot may not be.

You’re spoiled for choice when it comes to individual storage options with large middle and centre consoles, the latter can be made even larger because the two cupholders are retractable.

There is a massive shelf underneath them that has a handy elastic strap for larger items, like a handbag. The glove box is on the shallow side but both doors have a drink bottle holder and storage bin.  

In the rear, individual storage is also decent with two map pockets, two retractable cupholders in the fold-down armrest, as well as a drink bottle holder and storage bin in each door.

The other amenities in the rear are good with a couple of reading lights and directional air vents. I would have preferred to have seen climate control, too, but there’s enough here to satisfy.

The technology looks high-end but is relatively simple to operate once you get used to the Mercedes-Benz operating system.

The touchscreen multimedia screen has haptic feedback, which just means it vibrates when you touch it, and built-in satellite navigation with an augmented reality feature.

The digital instrument panel is customisable and the coloured head-up display is easy to see.

It is simple to connect to the wireless Apple CarPlay and there is also wired Android Auto.

Charging options are fantastic throughout the car with four USB-C ports and a wireless charging pad to choose from up front.

However, it’s annoying to use the charging pad if you’re also using the cupholders as its awkward to try and get a phone in and out of the housing. In the rear there are another two USB-C ports.

For the class, the boot isn’t massive at 430L and the wheels do cut into the width but it’s been big enough for my shopping errands.

You get a tyre puncture repair kit in the EQE sedan and I like the way you can electrically fold the rear seats if you need extra storage space. Having the hands-free powered boot lid is very convenient. 

There are three models for the EQE sedan and our test model is the mid-spec 350 4Matic grade, which will cost you $144,900, before on-road costs. It manages to slide into being the most affordable compared to its rivals and it has a tonne of features. 

Front occupants enjoy creature comforts like heated and electrically-adjustable front seats that feature four-way lumbar support, extendable under-thigh support, as well as, three-position memory function. They also have a ‘kinetic’ function which I liken to gentle stretching.

Premium items include a panoramic sunroof, black headliner, dual-zone climate control, AMG floor mats, 360-degree view camera system, Burmester 3D sound system, hands-free powered boot lid and electrically folding rear seats (access to the controls are via the boot lid).

The built-in satellite navigation also features an augmented reality feature, which shows dynamic directions overlaid on a video feed. Some might call this gimmicky but it does help navigating a city with all of the little laneways!

On the exterior you get 20-inch alloy wheels with aerodynamic covers and a glossy black grille that features a repeated Mercedes-Benz star motif.

There are a few cool lighting features on the EQE like the Mercedes-Benz logo projected from the side mirrors, a 64-way coloured ambient lighting system and something that Mercedes calls ‘Digital Light’ – which are LED HD adaptive projector-like headlights.

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 350 4Matic is an all-wheel drive with two electric motors that have a combined power output of 215kW and a massive 765Nm of torque. The lithium-ion battery has a large 90.5kWh capacity.

The 350 4Matic has a 0-100km/h sprint time of only 6.3-seconds but it feels gusty and you get a tummy-sucking sensation when you have to put your foot down.

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.

The 350 4Matic has an official energy consumption figure of 17.6kWh. My average sat round 16.9kWh and that is after a lot of open road driving. Happy with that.

With a driving range of up to 590km, I didn’t feet any range anxiety!

The charging port is a Type 2 CCS which will accept up to 170kW on DC, which means you can charge it from 10 - 80 per cent in 33 minutes. On an 11kW system, you can see that time jump to just under 10hrs.

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 amount of power the 350 4Matic model has, it’s no wonder I enjoy driving it! The motor is responsive and the car doesn’t shift around when you have to put your foot down, either.

The EQE handles beautifully on the road where it feels stable and sure of itself. It tackles corners without breaking a sweat and the steering is crisp.  

The ride comfort is high quality with suspension that smooths out bumps without feeling floaty. The cabin space is quiet even at higher speeds.

There are three levels of regenerative braking – none, normal or strong – ‘strong’ enables a one-pedal driving experience.

It’s responsive enough that you’re confident using it in stop/start city traffic but it wigs me out how the brake pedal moves by itself when activated!

I have kept the level at the default ‘normal’ setting but do tend to turn it off whenever I need to reverse because it can cause a ‘bunny hop’ effect at lower speeds.

The EQE is super easy to park with a clear 360-degree camera system, as well as, front and rear parking sensors. 

The EQE comes jammed pack with safety features and I think the 'Pre-Safe' systems are cool.

For example, a pre-crash audio tone will transmit through the speaker system when an imminent collision is detected. It elicits a reaction from your inner ear that dampens sound when the accident occurs. 

Other features that come standard, are LED daytime running lights, forward collision warning, rear cross-traffic alert, lane keeping aids, lane departure warning, intelligent seat belt reminders, front and rear parking sensors, 360-degree view reversing camera, traffic sign recognition, driver fatigue monitor, and adaptive cruise control with stop and go functionality.

The EQE also has rear collision emergency stop and stolen vehicle tracking. The autonomous emergency braking with car, pedestrian, and rear detection is operational from 7.0-80km/h (up to 250km/h for car detection).

The EQE achieved a maximum five-star ANCAP safety rating from testing done in 2022. There are a whopping 10 airbags, including a front centre airbag and drivers knee bag.

Back seat passengers also get side chest airbags, whereas its usual to only see these on the front row.

Families will be happy to see ISOFIX child seat mounts on the rear outboard seats and three top tethers, but two seats will fit best. There’s plenty of room for front passengers when you install a 0-4 rearward facing child 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.

On the EQE you’ll enjoy a five-year/unlimited km warranty and the battery is covered by a 10-year or up to 250,000km warranty (whichever occurs first) – which is better than most.

You can pre-purchase either a three-, four-, or five-year servicing plan and the five-year plan costs a flat $3555, or an average of $711 per service.

That’s quite expensive for an EV and the servicing intervals are more in line with a fuel-based car than an EV at every 12-months or 15,000km, whichever occurs first.