BMW 218i vs Mercedes-Benz GLC200

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 Mercedes-Benz GLC200 might be the base-grade, but it doesn’t look or feel like it. From the outside, it’s stylish and refined, and inside, it delivers that signature Benz luxury with premium features, impressive tech and a beautiful cabin.

While the engine isn’t wildly powerful, it’s more than capable for everyday driving and long stretches on the highway and the ride quality overall is smooth, quiet and composed. It loses points for being more expensive than its entry-grade rivals and for those steep ongoing servicing costs, which could be a sticking point for some buyers.

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.

The GLC is a handsome SUV with a strong, confident stance. It looks fit and premium, but not overly sporty, especially with the standard 'Avantgarde' exterior styling seen on our test car.

The entry-level grade rolls on 19-inch alloy wheels, features slimline running boards, LED lighting all around and an interior ambient lighting package that even includes logo 'puddle light' projection from the side mirrors.

Inside, the GLC200 doesn’t skimp on style. You get sports seats trimmed in synthetic leather (available in a range of colours), plus a panoramic sunroof, flashy dual displays and a black headliner that adds a cocooned feel.

The ambient lighting is a real standout and reminiscent of sci-fi films like Tron! It adds to the cabin’s upmarket vibe.

Combined with the soft-touch surfaces and neat trim details, the interior feels luxurious. And to be frank, it should at this level. But not every base-grade SUV in this segment gets it right. This one does.

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 cabin is spacious in both rows, with decent access thanks to wide door apertures and 195mm of ground clearance. That said, it’s the kind of cockpit you sort of tuck into and I knocked a knee or elbow on the steering wheel getting in (my husband joked this was just a user issue). My eight-year old had no trouble hopping in and out, though.

The front seats are best described as sumptuous, with features like expandable under-thigh and lumbar support. It’s super easy to get comfortable and stay that way, a big plus for anyone who does long drives, like I do.

The rear seats are equally comfy, with generous padding and deep bases. You’ll find three top-tether points in the back row, but realistically, it’s a space better suited to two child seats.

Keeping the cabin tidy is simple thanks to thoughtful storage throughout. There are deep door bins with drink bottle holders, a couple of cupholders in each row, a largish glove box and a dual-lid centre console.

Up front, there’s also a phone cubby, two USB-C ports and a wireless charging pad. In the rear, you get another two USB-C ports and some handy map pockets.

The boot has proven to be a practical space, with 620L of capacity and a level load floor. There’s a reversible mat and underfloor storage, which is also where you’ll find the space-saver spare tyre.

This grade now includes a powered tailgate, a welcome addition, and the second row folds electrically in a 40/20/40 split, giving you more flexibility when you need it.

The updated media display is easy enough to use once you spend a bit of time with it. The touchscreen is responsive, and wireless Apple CarPlay maintained a steady connection throughout our test. I also appreciated how the instrument cluster and head-up display pull through directions from either your phone or the in-built sat nav system.

There are five variants in the GLC range, and for this review we’re testing the new entry-level GLC200, priced from $84,455, before on-road costs.

While it’s definitely more affordable than the next step up, the GLC300, it still wears the highest price tag among its base-grade rivals, with the Audi Q5 35 TDI starting from $73,400 and the BMW X3 xDrive20i from $77,601.

That said, the GLC200’s generous equipment list could easily convince you it sits higher in the range. Standard features include 19-inch alloy wheels, synthetic leather trim as well as electric front seats with memory, heating and Mercedes’ ‘kinetic’ function.

You also get a panoramic sunroof, a slick 12.3-inch digital instrument cluster, a colour head-up display and a vertical 11.9-inch media screen running an upgraded operating system with satellite navigation plus wireless Apple CarPlay and Android Auto.

Practicality hasn't been overlooked, either. There’s a space-saver spare tyre (a welcome change from the run-flat tyre solution often employed by Euro brands), a handsfree powered tailgate, adaptive LED headlights, dual-zone climate control, four USB-C ports, two 12-volt sockets and a wireless charging pad.

Our test car also includes the optional 'Plus Package', which adds $5846 to the price. It bundles in a 15-speaker Burmester sound system, digital matrix LED headlights, heated and noise-insulating glass, augmented reality navigation and a digital key via the Mercedes-Benz app.

You’ll also find a few extra safety additions here, such as a lane centering aid, emergency steering assist, interior monitoring and external surveillance for added occupant protection and theft deterrence.

Overall, a bit more expensive but you get an impressive amount of features.

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 GLC200 is powered by a 2.0-litre, four-cylinder, turbo-petrol engine paired with a 48-volt mild-hybrid system, producing up to 150kW of power and 320Nm of torque. It’s the least powerful engine in the GLC range, but still manages to feel punchy when you need it to.

This all-wheel-drive variant is paired with a nine-speed automatic transmission. While it can feel a little twitchy at lower speeds when the auto start/stop system is active, it’s otherwise a smooth and well-matched combination for everyday driving.

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 GLC200 has an official combined cycle (urban/extra-urban) fuel consumption figure of 7.5L/100km and with its 62-litre fuel tank, you’re looking at a theoretical driving range of up to 826km which are solid figures for a family cruiser.

In real-world testing, I averaged 7.8L/100km, mostly around town with one longer trip thrown in. Overall, I’m pretty happy with its efficiency.

Mercedes-Benz recommends a minimum of 95 RON premium unleaded petrol for this model.

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.

Despite having the ‘baby’ engine in the range, the GLC200 doesn’t feel underpowered. Power delivery is generally quick, and there’s enough in reserve when you need to get up to speed or overtake. It’s responsive and confident in everyday driving.

That said, the auto start/stop feature is frustrating around town, especially at give way signs or roundabouts where you’re more likely to pause than come to a full stop.

It will cut the engine, and then when you want to accelerate, there’s a delay - sometimes even a little rollback. Not ideal, and definitely something that takes away from the otherwise polished drive.

The suspension hits a lovely balance, it’s forgiving but not floaty. You feel the road just enough to stay connected without it ever feeling harsh, which means the ride stays smooth and composed. It’s also a lovely highway cruiser, easily settling into long stretches with comfort and ease.

Visibility is solid, with minimal blind spots thanks to slim pillars, and the steering is responsive. It corners with confidence, too, with very little body roll, which isn’t always the case in a mid-size SUV.

Parking is straightforward thanks to a clear 360-degree camera system and park assist. The reversing camera turns with the steering wheel, which takes a moment to adjust to, but ultimately makes tight manoeuvres that little bit easier.

The GLC carries a maximum five-star ANCAP safety rating, based on testing conducted in 2022. It scored an excellent 92 per cent in both adult and child occupant protection, which gives plenty of peace of mind for families.

It’s also well-equipped when it comes to safety tech. There are 10 airbags in total, including a front centre airbag and side chest airbags for both rows; a solid showing in this segment.

Even without the optional Plus Package, the GLC comes loaded with safety features including blind-spot monitoring, side exit assist, lane departure alert, lane keeping aid and traffic sign recognition.

There's also driver attention warning, a 360-degree camera view, front and rear parking sensors, forward collision warning, intelligent seatbelt reminders and rear cross-traffic alert.

With the Plus Package, you add interior and exterior monitoring systems, along with something called 'Pre-Safe Impulse Side'; a clever feature that gently moves front occupants away from the doors if a side impact is imminent.

Autonomous emergency braking is also included, with pedestrian, cyclist, car and backover detection. It operates from 7.0-80km/h (or up to 250km/h for vehicles), which is slightly higher than most systems that usually activate from 5.0km/h.

In the back, there are ISOFIX child seat mounts on the outboard seats and three top-tether anchor points across the row.

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 GLC is backed by a five-year/unlimited kilometre warranty, which puts it on par with key rivals in this space. Servicing intervals are generous, too, at every 12 months or 25,000km. Great news if you rack up a lot of kilometres.

But the catch? Servicing costs are steep. Mercedes-Benz offers pre-paid servicing plans in three-, four-or five-year bundles, and the five-year package will set you back $7350. That averages out to almost $1500 per visit. Oof.

For comparison, the Audi Q5’s five-year plan is $3520, and BMW’s five-year 'Basic Service Inclusive' package for the X3 is $2475. So, while the GLC might win on features and finish, it definitely asks more of you when it comes to ongoing costs.