Lexus RX350H vs Mercedes-Benz C300

What's the difference?

It’s hard to look past the value equation of the RX350h Luxury 2WD when comparing it to almost all its competitors. The pricing is on point, but there are some features missing.

However, there are very few (if any) rivals with a true hybrid powertrain (sorry, mild hybrids do not count), so the RX will capture buyers looking for environmental credentials and efficiency without going full EV.

The drive experience is much better than before and it’s all wrapped up in a very stylish package. The Lexus RX should not be ignored.

Over five decades, the Mercedes-Benz C-Class has pivoted between mastery and mediocrity, and all-too-often relied on that three-pointed star up front to win over buyers.

Thankfully, the W206 is one is one of the better generations. It's easier on the eye, comfier to travel in, more intuitive to use, safer across the board and a huge improvement to drive. On the evidence of the C200 and C300 launch grades, there's newfound depth and consistency to savour.

Sure, prices have gone up, the C200 could use a bit more power, the steering could benefit from a bit more feel, the odd build-quality glitch made itself heard and there's a fair bit of road noise at times, but overall, the C-Class now deserves to be at the top of your luxury medium sedan shopping list.

Particularly if you can afford to stretch to the rorty C300.

Across its five generations, the RX has held significant visual appeal - especially the still-handsome second-gen version that was the first RX sold Down Under. The first-gen model skipped Australia.

The new model that launched in 2023 is a clear evolution of the car that came before, but it’s been softened and sharpened in the right areas, giving it one of the most appealing designs in its segment.

The proportions and design elements like the squat stance, unique C-pillar treatment, slimline headlights and nicely sloping roofline give it a sporty look.

In fact, I reckon it might be the best looking Lexus available today - not including the jaw-droppingly beautiful LC coupe and convertible, of course.

The interior is modern and feels like an evolution of Lexus’ previous cabin design - but elevated. The gloss black section of the dash helps here.

Levels built into the dash break up the bulk, but the interior is very grey. It could do with a dash of colour.

The synthetic leather seat trim doesn’t look premium. If you want a more expensive feeling RX, you need to pay more for a higher grade.

If you're checking out the new C-Class for the first time from the front, you'll probably think… hmm, it looks just like the old one, and that's largely true.

But a side view reveals proportions that have changed significantly, thanks to the more raked windscreen, shorter overhangs and cleaner lines, which give it a slightly smaller S-Class look.

Which is more in fitting with where Mercedes wants to place this car against its 3 Series and A4 competitors.

Additionally, the taillights are split for the first time, allowing for a wider boot aperture since the lid now contains some of the lighting elements.

The shrunken limo looks aren't just the whim of some designer or Mercedes-Benz marketing department copywriter, either.

Underneath is an albeit highly modified version of the latest S-Class' MRA2 platform, which results in the longest (at 4755mm) and widest (at 1820mm) C-Class in the series' 40-year existence, as well as the first with this level of electrification capability.

Height and wheelbase dimensions also see a stretch, by 8mm and 25mm to 1450mm and 2865mm over the previous model respectively, and to the benefit of passenger accommodation.

Speaking of which, get used to this new interior aesthetic and general layout – it's a look that's probably going to filter through to most coming non-EQ-branded Mercedes models over the next few years.

From S to C to future E and A classes and beyond. It's a rare instance of trickle-down economics actually working!

The RX is a five-seat only proposition in this generation - the previous model had a seven-seat option - so if you need a third row you can look at the Lexus LM people mover or massive LX 4x4 SUV, or at any number of other three-row lux SUVs like the Volvo XC90 or new Mazda CX-90.

That doesn’t mean the cabin isn’t practical. 

Up front the seats offer excellent comfort levels and ample upper body support, but not a lot of hip support.

Lexus has changed up the door handles for the new RX and it can be complicated - initially.

The interior handles bamboozled every new person that got in my press car over the three week loan. But once you realise it’s a simple push of the thumb on the handle’s thumbpad and a gentle push, it all makes sense.

Lexus calls the electrically activated door handles an ‘e-latch’. Is it tech for tech’s sake? Probably. 

I recently reviewed the Lexus LM and commented on how much I like Lexus steering wheels and that’s true of the RX, too.

It has clearly identifiable controls and feels nice in your hands. Thankfully, the cruise control buttons are housed on the wheel too, so no annoying stalk on the wheel.

There’s plenty of space across the front row so you should avoid the awkward driver-passenger elbow bump on the centre armrest.

Under the armrest is a huge central bin that opens on the driver and passenger side. There’s also a big covered storage nook forward of the shifter and another ledge above that, as well as a sizeable glove box. 

The doors have ample storage room for bottles, but the space is almost too wide. My bottle slid around when driving so I had to lay it down.

The centre console houses two big cupholders with adjustable depth in one of them. Clever touches like this and the central bin add to the appeal.

As with the Lexus LM, I am a fan of the new Lexus multimedia set-up. It has an easy-to-navigate menu along the side, easy wireless Apple CarPlay connection, and visually appealing graphics.

It’s a world away from Lexus’ previous system. That frustrating touchpad is, thankfully, in the bin.

I quite like the gear shifter with its unusual gate and even the indicator feels and sounds premium.

Small rear windows make for a rear three quarter blind spot, but visibility is otherwise good.

On a side note, the RX has very strong air conditioning - perfect for an Australian summer.

Jumping into the second row, there’s plenty of space all around and no shortage of head, leg, knee and shoulder room. Although foot room under the front seats is tight.

As with the front seats, the rear row offers comfortable seating. Kids should be happy back there.

There’s only a small transmission tunnel so middle-seat legroom is good. And in great news for passengers, the rear backrests recline. 

Lowering the 40/20/40 split-fold rear seats for more cargo space is done via a lever on the side of the outboard seats, or by a button in the boot area. There are ISOFIX clips on the two outboard seats.

Other amenities in the second row include map pockets, two USB-C ports, knee-level air vents, climate control, and a pull-down armrest with pop-open cupholders.

Open the power tailgate and you’ll find cargo space of 612 litres with all seats in place, or 1678L with the second row stowed.

That’s a decent amount of space but not class leading. The Mercedes-Benz GLE has 630L and the VW Touareg can swallow 810L.

There’s no under-floor storage because that’s where some hybrid hardware is housed. You will find audio speakers, nice carpet, a cargo blind, two 4.0kg hooks and three top tethers. No spare, only a tyre repair kit.

One of the best things about the new C-Class is that it's larger and therefore roomier than before. It's also higher quality, easier to use, more comfortable to sit in and - overall - more of a delight to behold.

In contrast, the old C-Class dash looked and felt like it was designed for a much cheaper car, especially compared to Audi's efforts.

Obviously related to the S-Class this time around, it's clear Tesla provided the inspiration for the twin floating screen look and layout, which are just right in their driver orientation and ease of functionality.

There's never really been anything wrong with Mercedes' old front seats, but these AMG Line items are both sumptuous and bracing, keeping their occupants well located ahead of the clever and thoughtfully laid out dashboard.

The brilliantly high-resolution MBUX multimedia and voice-recognition system now works as it should - intuitively and logically, with the screen menus simple to recognise and easy to use, and most without the need to get lost in confusing sub-menus. Just like BMW has managed for years.

If you want to change the instrumentation design, it's now a couple of clearly marked steps, using handily placed switchgear. The same goes for the superb climate control and audio systems. And the wireless Apple CarPlay/Android Auto connected faultlessly and worked a treat. Effortless see-and-push operation all round, backed by concise and classy graphics.

No more degree in Earth-to-Mercedes comm skills required to master this C-Class interior.

Yet there's just enough old-school Benz features to appeal to brand diehards, from the eternal door-card mounted electric seat controls and column-mounted gear shifter, to the deep centre console and turbine face-level air vents. They meld together beautifully with the advanced tech also on offer, like the optional augmented-reality head-up display with 3D-graphics.

Annoyingly, on one of our test cars, that tradition also extended to a couple of squeaks and rattles, proving that maybe Mercedes hasn't quite conquered all its past quality gremlins. And, like most luxury cars nowadays, endless ambient lighting choices are available of dubious taste.

Never mind. This is the finest C-Class front-seat environment since, well, probably the original W210 190E's of the 1980s.

And all those extra dimensions pay dividends in terms of interior space in the back seat.

There's plenty of knee room even with the tester sat behind their 178cm frame; head room is adequate even with the optional sunroof fitted, and there's ample shoulder space. So, it's more comfortable than any C-Class ever has been in terms of sheer dimensions.

Additionally, the rear backrest is well angled, while the cushion is deep enough to provide sufficient thigh support. But the centre perch is a bit of a squeeze for all concerned. Best avoided.

There's also added practicality to be found with the large and deep door pockets, front seat-back map pockets and folding centre armrest, that not only has a tablet holder, but when pressed in twice, also reveals sliding cupholders as well. Clever.

The C-Class rear seat is really lacking for nothing, with face-level air vents, overhead lighting, grab handles and coat hooks all highlighting the level of thought that went into making this a practical compact family sedan.

Plus, the C-Class comes with this folding ski port, which along with the folding rear seats, increases boot volume from 455L to, well, a lot more. While that's not quite as good as others like the BMW 3 Series, it's big enough for this car.

Note that there is no spare wheel, as the tyres are of the limited-distance runflat variety.

Initially, there are two sedan versions of the new W206 series C-Class on offer – the base C200 from $78,900 before on-road costs, and the more-powerful C300 grade from just over $90,400 before ORC.

There's no sugar coating this. These prices represent a shocking $12,000 and $15,100 jump, respectively, over the outgoing W205 equivalents. Which means that, now, even the cheapest C-Class costs significantly more than any of its corresponding direct rivals.

For example, the Audi A4 35TFSI kicks off from $59,900, Volvo S60 B5 Inscription AWD from $62,490, Genesis G70 2.0T from $63,000, Alfa Romeo Giulia Sport from $63,950 and BMW 320i Sport Collection from $69,900 (drive-away). And even the Tesla Model 3 Standard Range (SR) Plus RWD and Polestar 2 SR EVs slip in at under $60K apiece. All before ORCs, BMW-aside.

But the news isn't all bad, because even though prices have jumped, Mercedes reckons it gives you more, as well as the very latest in technology, design and engineering, since the W206 is the newest kid on the block by some margin.

Let's begin with equipment levels.

On top of the front electric seats, satellite navigation, automatic parking, dual-zone climate control, artificial leather Mercedes brands ARTICO, digital radio, remote boot lid closing and 18-inch alloys that the base C200 all came with previously, the new one now adds an AMG Line body kit and interior trim, adaptive cruise control, Lane Keep assist, a 360º camera, auto high-beam headlights and keyless entry/start. These go a long way to offset that $12,000 price hike.

Plus, for the first time, you'll also score a centre airbag between the front seats, fingerprint scanner ID tech for the new 11.9-inch media display and a 48V mild-hybrid system to help cut fuel consumption and emissions. Most of these items are segment-firsts. Note, too, that the engine's been downsized from 2.0 litres to 1.5L. More on that later.

Meanwhile, the C300 gains all of the gear above, as well as a new 2.0L mild-hybrid engine, leather trim, privacy glass and a Driver Assistance Package Plus – a very worthwhile addition since it brings Active Blind Spot Assist, Active Brake Assist with Cross-Traffic Function, Active Emergency Stop Assist and Active Lane Keeping Assist, among heaps more driver-assist safety features.

More details follow in the Safety section below.

Of course, these are just the start of a wave of fresh C-Class models. Soon they'll be joined by the AMG 43 and thunderous AMG 63 sports sedans, as well as plug-in hybrid versions.

So, from a pricing perspective, yes, the new C-Class sedan does come at a premium compared to its direct competitors. But all that kit – including the advanced hybridised and safety technologies that are now either standard or available – presents a compelling value proposition.

Especially as the W206 sedan is measurably larger and thus roomier than before.

Powering the RX350h is a series parallel hybrid system consisting of a naturally aspirated 2.5-litre four-cylinder petrol engine, a front-mounted motor and a nickel-metal hydride battery. 

Lexus doesn’t provide combined torque outputs for the hybrid, but total power for the system is pegged at 184kW.

This drives the front wheels only via a continuously variable transmission (CVT).

Probably the biggest departure compared to any previous C-Class is this generation's switch to direct-injection four-cylinder-only powertrains – including the coming Mercedes-AMG high-performance versions. Now that should be interesting.

As mentioned earlier, the C200's four-cylinder turbo engine is now about 25 per cent smaller in capacity, down from 2.0L to a 1496cc 1.5L twin-cam 16-valve turbo engine. Dubbed the M254, it pumps out 150kW of power at a high 6100rpm and 300Nm of torque between 1800-4000rpm.

That's not to say it's lacking in muscle, though, since it can sprint from zero to 100km/h in 7.3 seconds, on the way to a 245km/h top speed. These outputs are at least a match for the bigger-engined 3 Series and A4 equivalents, by the way.

If it's more you want, then the C300 features a 1999cc 2.0L turbo version of the M254, delivering 190kW at 5800rpm and 400Nm between 2000-3200rpm. This slashes that 0-100km/h time to a speedy six seconds flat. There's also an extra 20kW of overboost available for short periods if you're really in a hurry, while - where legal - it's possible to hit 250km/h.

Both send drive to the rear wheels via a nine-speed torque-converter automatic transmission, while the 48V mild-hybrid system, dubbed EQ Boost, employs an integrated starter-generator and lithium-ion battery that provides an additional 15kW and 200Nm of electric boost at low engine speeds.

So, while it doesn't ever run purely on electricity, the electrification tech certainly either brings more punch or takes the load off the petrol engine, depending on how you're driving it.

The official combined cycle fuel consumption figure for the RX350h 2WD is 5.0 litres per 100 kilometres, with CO2 emissions of 114g/km. You won’t get figures like that in a petrol or diesel competitor.

Over three weeks of mixed city, country, urban and freeway driving, I recorded 6.8L/100km which is not too bad given some of my spirited driving. The trip computer said 7.0L which is close to my figure.

The RX350h takes premium unleaded petrol and has a 65-litre fuel tank, so expect a range of around 950km based on our real-world consumption number.

Remember when I said that the C-Class moved to an all-four-cylinder engine range? Well, that's primarily to help it better meet fuel consumption, efficiency and lower emission targets.

On the Australian combined fuel consumption cycle, the C200 manages 6.9 litres per 100km – and that's extremely impressive for a medium-sized sedan weighing almost 1.8 tonnes. So is the fact that the larger-engined C300 returns only 0.4L/100km more at 7.3L/100km. Fitted with a 66-litre tank, these numbers suggest that the former can average nearly 960km between refills while the latter can manage just over 900km.

These figures translate to averages of 157 and 164 grams per kilometre of carbon dioxide emissions respectively. On the flipside, both these Euro-6 emissions rated engines require 98 RON premium unleaded petrol to deliver their best.

So much for lab tests. Out in the real world, we drove both cars for several hundred kilometres on a hot summer's day, from inner Melbourne during peak-hour traffic, to some great curvy rounds out in central Victoria, featuring some tight corners and ample opportunity to really stretch both cars' legs.

Over these routes, we averaged an indicated 8.4L/100km in the C200 and – astonishingly – 7.4L/100km in the C300. Yes, the larger and more powerful engine proved more economical.

Clearly, along with the advanced aerodynamics, engine stop/start system and 48V mild-hybrid tech, all that downsizing works. No wonder Mercedes deemed it unnecessary to bother with diesel engines for this generation C-Class.

The old RX was competent and even nice to drive but not a patch on the likes of the BMW X5. The new-gen RX improves on that in a big way.

It offers solid acceleration from a standing start. Lexus says 8.1sec from 0-100km/h - without giving you chills. The sportiest RX is the 500h Performance hybrid and that covers the same distance in 6.2sec.

The transition from electric power to petrol propulsion is more evident in this model than it was in the LM350h people mover I tested recently - the RX is a little noisier. The CVT doesn’t help this, offering up an uninspiring engine note.

It is, however, a much more fun car to push into tight bends than the previous RX. It remains reasonably flat in corners, and pulls out of tem with ease, but can’t compare to the dynamics of the dearly departed IS sedan.

The 19-inch tyres have large sidewalls and as a result soak up harsh bumps on the road. The non-adaptive suspension is tuned for better dynamism, meaning the ride quality is on the firm side.

The front-wheel drive RX lost traction for a second on a sweeping uphill section of my drive route, but the electronic traction systems otherwise kept the big SUV in check. 

But around town in urban areas, there is very little to complain about behind the wheel of the RX350h.

There has been a philosophical shift in how the C-Class is presented.

Even with their standard-in-Australia AMG Line package, the regular grades like the C200 and C300 are now leaning into the brand's luxury heritage, while the BMW-baiting sports sedan versions will be left to the coming AMG versions.

And this in turn profoundly informs how the W206 drives.

Even with the optional Sports Pack on 19-inch wheels, the C200 as tested finally feels like a premium midsized sedan experience. Muted at start up, the 150kW/300Nm 1.5L turbo steps off the line smartly and smoothly, its nine-speed auto shifting effortlessly through the gears to keep the engine feeling lively and lusty.

Around town it's easy to mistake the engine as a larger-capacity unit, since throttle response is instantaneous, with little to no lag detectable. It's a strong start for a base powertrain, especially as the C200 settles into a relaxed cruise at freeway speeds. Cycling through the driving settings also reveals how feisty the 'Sport' mode is.

But the 1.5L's lack of size becomes obvious the moment you need to overtake quickly, or when a quick squirt of acceleration up a hill is required, because the engine needs plenty of revs to approach that 6100rpm power peak. While still pretty brisk in these situations, it's also fairly vocal too, with a sense of having to work hard to maintain momentum.

Switching to the C300 highlights how much better suited the 190kW/400Nm 2.0L turbo is to highway driving, leaping forward with much more force and conviction, across the entire performance spectrum. In every metric, this is a better choice – throttle response, mechanical refinement, cruising ease. And the fact that the onboard computer showed less fuel consumption cements our preference for the larger-hearted C-Class.

In fact, both models possess a chassis that feels like it could do with a whole lot more power. Light and tight around town, the steering weighs up nicely at higher speeds, with a linear and reassuringly planted feel. The same also applies to how confident and controlled the Mercedes feels through fast, tight turns, yet settles into a relaxed and comfortable tourer along long, straight stretches of road.

It's a pity, then, that such dynamic agility and prowess doesn't really involve the driver, since the steering feels quite isolated from what's going on underneath; for the vast majority of C-Class buyers, that's fine. But, as a quick spin in any latest BMW 3 Series or Jaguar XE will reveal, there isn't an intimate, two-way connection going on here. That's probably going to be reserved for the AMG models.

Our C200 rode on bigger wheels and steel springs, while the C300 was fitted with optional adaptive dampers. In the previous-generation C-Class, the differences would be stark: a busy and jittery ride in the former, compared to soft yet still unsettled suspension in the latter.

That's all ancient history now, as even the 'passively' suspended C200 now isolates its occupants from the rough and tumble of our inconsistent roads. Still firmish, but no longer harsh.

And the C300 with adaptive dampers seems downright plush by comparison, while offering the driver personalisation options within the aforementioned driving models to tailor the steering, performance and engine sound settings that best suit the prevailing mood.

Too bad there's some road and tyre noise intrusion heard inside when driving over coarse bitumen roads. This is a common pitfall amongst German vehicles in Australia.

Still, it doesn't detract from the fact that the whole chassis set-up can at-last cushion and cosset occupants like, well, a mini S-Class.

Which is the whole point of the W206 C-Class. It now majors on comfort and reassurance like the better Mercedes-Benz models used to, while still being suave and sprightly enough to be a memorable – if not over-exciting – drive.

As a result, the C300 especially is a much-more likeable car than past iterations. Just remember to tick the adaptive damper option for the most optimal experience. Job well done, Mercedes.

The W206 C-Class has not been crash-tested yet by ANCAP or European affiliate EuroNCAP, so does not have a star rating. However, Mercedes-Benz claims it has striven to create one of the safety vehicles on the planet.

To that end, there are now 10 airbags fitted, including dual-front combined pelvic/thorax airbags, front centre airbag, rear side airbags, window airbags and driver's knee airbag.

Plus, you'll find Autonomous Emergency Braking front and rear (including for cyclists and pedestrians, at speeds from 7km/h to over 200km/h), adaptive cruise control with active stop/go, a 360 degree camera, Active Parking Assist, drowsy driver monitor, Active Lane Keeping Assist, Blind Spot Assist, ABS anti-lock brakes with Brake Assist, Adaptive Brakes with Hold function, brake drying and Hill Start Assist, electronic stability control, traction control, dusk-sensing LED lights, rain-sensing wipers and runflat tyres with tyre pressure warning.

The C300, meanwhile, adds Driving Assistance Package Plus, with features such as Active Blind Spot Assist, Active Brake Assist with Cross-Traffic Function, Active Emergency Stop Assist, Active Lane Change Assist, Active Lane Keeping Assist, Active Steering Assist, and Active Stop-and-Go Assist… basically, this is where the car actually intervenes to help avoid accidents and impacts. There's also the PRE-SAFE side accident anticipation and protection system.

Both models also feature two ISOFIX child seat restraints as well as three top tethers for straps.

The RX350h is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

There’s a capped-price servicing plan lasting five years and it will cost $695 per service. That's significantly less than some rivals like the Mercedes GLE.

The RX is covered by the 'Lexus Encore' loyalty program and includes complimentary service loan cars, fuel offers as well as discounts and other offers with Lexus partners.

Kudos to Mercedes-Benz for being the first luxury manufacturer in Australia to offer a five-year/unlimited kilometre warranty – matching most other mainstream makers. Lexus and Audi have only recently followed suit.

A five-year roadside assistance subscription is also included. Service intervals are 12-monthly or at every 25,000km, whichever occur first.

Additionally, a four-year capped price service plan is available, at $550 for the first year, $900 for the second, $1000 for the third and $2450 for the fourth, totalling $4900.

Alternatively, buyers can also choose three pre-purchase service plans to save a bit of money, but these must be bought prior to the first service.