Mercedes-Benz C300 vs Audi RS3

What's the difference?

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.

The Audi RS3 is a special hot hatch and sedan I’m so glad I experienced before its five-cylinder engine is inevitably retired due to emissions regulations. Full of character and charisma, this car is far from a rational purchase, pitched at boy racers who don’t want to grow up just yet.

From a value perspective, too, while the asking price has crossed the six-figure threshold and the option prices add thousands, it’s still much cheaper than the Mercedes-AMG A45 S. Make of that what you will.

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

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!

Audi has made some subtle tweaks to the RS3 that has somehow made this snarling hot hatch look even angrier.

Up front there’s a new fascia featuring more open sections, which in turn improves air flow. A black styling package is now standard so it almost looks like the entire front is open and ready to eat you alive.

The matrix LED headlights now have a darkened finish which adds to the menacing look. There are new signatures, including a special chequered flag one for the RS3 which looks top notch.

Around the side it surprises me just how much wider the front is compared to the rear. Both have big, muscular haunches, but it shows this hot hatch is a bit of a bulldog. I’m a big fan.

These haunches stand out even more when you opt for the new Daytona Grey Matte exterior paint. While the extra $11,400 for the privilege makes me wince, it looks sexy on this car.

The standard 19-inch ‘Y-spoke’ alloy wheel design remains unchanged from the pre-update car, though there’s a new, optional ‘cross-spoke’ design that looks delicious (and tricky to clean).

At the back there’s still the classic RS dual exhaust tip motif which looks mean and it’s surrounded by a new black rear diffuser with a motorsport-inspired vertical red reflector in the centre.

The new LED tail-light signature with the vertical slats is so clean and neat. It looks particularly great in low-light situations or at night.

Inside, the biggest change is the new RS steering wheel with the flat top and bottom. As standard it’s wrapped in perforated leather, but with the optional RS Design package it’s wrapped in 'Dinamica' synthetic suede. I much prefer the standard leather-wrapped unit as the Dinamica likely won’t last in the long run, especially if you’ve got clammy hands.

Other changes include more interior ambient lighting on the door cards through small slits, as well as a new shift-by-wire gear selector. The digital instrument cluster and touchscreen multimedia system set-up remains unchanged which is no bad thing because they look fantastic.

It’s disappointing Audi has stuck with an extensive use of piano black on the centre console because this gets dusty and grimy very quickly, and then can get scratched easily when wiped clean. It now also features on the steering wheel buttons, which are frequent touchpoints.

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.

The RS3’s standard sport front seats are deliciously comfortable and offer plenty of electric adjustment. This means people of any size and stature should be able to find their desired seating position.

Thanks to the electric lumbar there’s also a massage function for the front seats. This is pretty cool to flick on and relax into, but I wish the massage was a little stronger.

While the new steering wheel looks cool interacting with the buttons on it can be a bit of a hassle. They’re touch-sensitive but do have a satisfying click if pressed harder.

There were moments where I accidentally clicked on the buttons during intensive track driving as my hands were at the nine and three o’clock positions. Not the best thing when you’re meant to be focussing.

The digital instrument cluster offers so much configuration you won’t know what to do with yourself. There’s even a new rev counter design especially for the RS3 which looks very cool.

Moving across, the touchscreen multimedia system is classic Audi. It’s easy to navigate around and hard to get lost in the sub-menus. There’s also wireless Apple CarPlay and Android Auto connectivity which is virtually a given now.

While you need to use the touchscreen for a number of features, I appreciate how Audi has retained so much physical switchgear up front. It’s particularly handy to have physical toggle switches and a small digital display that’s separate from the touchscreen for the climate control.

Another piece of physical switchgear I like up front is the rotary dial for the media controls on centre console. It’s much like an iPod, allowing you to change the volume if you rotate your finger on it like a click-wheel. Major throwback vibes.

In terms of storage up front, it’s decent but not outstanding. There are two cupholders, a wireless phone charger, a centre console box as well as a lockable glove box.

Moving to the second row, it’s clear it’s more for the sake of it, rather than having a space you’d want to use all the time. At a leggy 182cm tall, I have minimal legroom behind my own driving position.

With headroom, it’s adequate in the hatchback and not great in the lower-slung sedan. I need to kink my neck in the latter to fit, which isn’t comfortable.

The second-row bench seat is comfortable, offering enough support for short-to-medium trips. I wouldn’t want to get stuck back there for too long, however.

In terms of amenities, there are air vents mounted on the back of the centre console with a dedicated third zone of climate control, two USB-C ports, nets on the seat backs as well as a fold-down centre armrest with cupholders.

At the back there’s a power tailgate for the hatchback, however the sedan only has a power-opening boot lid. This means you need to manually shut it, which isn’t uncommon for sedans.

Boot space in the RS3 is a weak spot due to all the componentry for the all-wheel drive system and the tricky rear clutch set-up. There’s only 282L for the hatch and 321L for the sedan, which isn’t much.

In reality, however, the boot space is still usable. It’s fairly square and there’s barely any boot lip, meaning you can slide things in and out with ease.

Boot-related amenities include a netting system to keep things from sliding around, a light, some hooks and a 12V socket. There’s also a parcel cover for the hatchback.

Unfortunately there’s no spare wheel of any kind under the boot floor in the RS3 as this is where the 12V battery lives. Instead there’s a tyre repair kit. This isn’t uncommon in performance cars, though it’s disappointing if you frequently travel in the country, away from tyre repair shops.

This facelift for the Audi RS3 has seen the price tag rise beyond six figures for the first time.

It’s now priced from $104,800, before on-road costs for the hatchback or $107,800, before on-road costs for the sedan. This is between $9000 and $9500 more expensive than the pre-update version, depending on body style.

While this may seem like a considerable amount of money for a hot hatch it’s worth noting the Mercedes-AMG A45 S is well over $120,000, before on-roads.

As standard there are 19-inch alloy wheels, darkened matrix LED headlights, a black exterior styling package, 12.3-inch digital instrument cluster, 10.1-inch touchscreen multimedia system with wireless Apple CarPlay and Android Auto, 15-speaker Sonos audio and RS sport seats with Nappa leather upholstery.

There’s a new RS steering wheel with a flat top and bottom, as well as touch-sensitive and shortcut buttons for the 'RS Performance' drive modes. There’s also more interior ambient lighting and a panoramic glass sunroof as standard.

Optional extras include a 'Carbon Package' ($7400 hatch, $6300 sedan), 'RS Design Package Plus' ($2150) in either red or green, ceramic front brakes ($10,800) and a new 'Daytona Grey Matte' exterior paint colour ($11,400). The latter is the first time matt paint has been offered on an RS3 locally.

While there’s a considerable amount of standard kit in the RS3, it’s easy to add tens of thousands to the asking price with the options list, but as a result you can personalise the car exactly how you’d like.

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 Audi RS3 is still powered by a 2.5-litre turbocharged five-cylinder petrol engine which produces an unchanged 294kW of power and 500Nm of torque.

This is mated to a seven-speed dual-clutch automatic transmission with drive sent through an all-wheel drive system.

Audi claims both versions of the RS3 can do the 0-100km/h sprint in just 3.8 seconds, which is technically 0.1 seconds faster than a Mercedes-AMG A45 S. Top speed is electronically limited to 250km/h.

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 Audi RS3 sedan is claimed to consume 8.2L/100km, whereas the RS3 hatch is claimed to consume 8.3L/100km, both on the combined (urban/extra-urban) cycle (ADR 81/02).

Both body types come with a 55L fuel tank and require a minimum of 98 RON premium unleaded petrol.

During my testing I saw an average of 9.6L/100km according to the trip computer. We did around 200km of higher speed driving heading east out of Melbourne, including some spirited sections.

Our on-test figure translates to a range of 570km on a full tank of petrol.

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.

Spoiler alert, it’s a cracker.

Starting up the RS3, you’re instantly aware you’re behind the wheel of something special. Audi has made the start-up more “emotional” with this update and also “optimised” the exhaust flap control for more five-cylinder growl across a wider rev range.

When you’re on the boil, this five-cylinder sounds so fantastic. It’s the clear centrepiece of this car and I’m so happy Audi has continued to offer it.

However, thanks to the addition of a petrol particulate filter (PPF) with this latest-generation model it sounds a little muted in everyday driving. Call me a boy racer, but I want more noise.

Staying on the engine, it’s full of character and gets this small hatch and sedan moving along with ease. Even though the outputs are unchanged with this update, it’s still more than enough; 0-100km/h in 3.8 seconds shows it's more than enough.

The seven-speed dual-clutch automatic transmission in this car keeps the acceleration feeling relentless with snappy gear changes at a moment’s notice. It’s particularly fun taking control of moving between the ratios with the paddle shifters.

In slow-moving traffic, however, the dual-clutch can get a little lost and stuttery, which is a classic characteristic of this kind of transmission.

As standard the all-wheel drive system remains neutral, keeping the front and rear balanced and in check. However, if you flick to the ‘Dynamic’ drive mode you get more rear-biased action which is fun when you exit a corner with some extra heat.

There’s also still a ‘RS torque rear’ drive mode which is essentially a drift mode. Unfortunately we didn’t get to sample this during the launch program.

Additionally, there’s an ‘Individual’ mode that allows you to choose your own destiny. You could spend hours here fine-tuning your desired drive mode which is both great to see but complete nerd-core.

Like the pre-update car, there’s an electronically controlled multi-disc clutch on the rear axle which actively splits the torque between the rear wheels. However, it’s been "optimised" to allow for quicker cornering.

While this is hard to gauge without testing the pre-update and current car back-to-back, the RS3 is so dynamic it feels like you only scratch the surface on public roads. Thankfully we got to see how far we could push it on Haunted Hills, which is a fantastically complicated hill climb circuit in eastern Victoria.

In terms of the steering, there’s a progressive rack as standard which ramps up the steering intensity the more you turn the wheel. In practice, this means the lock-to-lock ratio is very short, making it easy to link up tight corners.

It also makes it easy to navigate tighter driving scenarios, like parking, though it disguises how wide the turning circle is. Expect to do three-point turns fairly often.

For the suspension, the RS3 has adaptive dampers set-up that generally errs on the sportier and firm side. There is a ‘Comfort’ mode which irons out some bumps, but larger road imperfections still transmit harshly into the cabin.

It’s also worth noting at higher speeds there’s a considerable amount of road and tyre noise that comes into the cabin. Thankfully the Sonos sound system does a great job at drowning this out.

Lastly, the safety systems in this car are generally user-friendly, though the lane-keep assist can be a little too hands-on, especially on narrow roads with poor lane markings. Thankfully you can switch this off by pressing and holding a button on the end of the indicator stalk.

The regular Audi A3 received a maximum five-star ANCAP safety rating back in 2020, though this only covers front-wheel drive versions and doesn’t extend to the high-performance RS3.

Standard safety equipment includes seven airbags, autonomous emergency braking (AEB), blind-spot monitoring with exit warning, rear cross-traffic alert, adaptive cruise control, lane-keep assist, driver attention monitor, front and rear parking sensors, a surround-view camera as well as a semi-autonomous parking assistant.

AEB is active from 5.0km/h and lane-keep assist activates from 60km/h.

There’s also Audi’s 'Pre-Safe' system as standard which automatically closes the windows and sunroof, as well as pre-tensions the seatbelts if the car senses it’s going to be involved in a crash.

Additionally, all owners get three years of complimentary access to 'Audi Connected Services', including online roadside assistance and remote functions through a smartphone app. There’s also 10 years' emergency SOS call support and automatic service reminders.

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.

Like all Audis, the RS3 is covered by a five-year, unlimited-kilometre warranty. There’s also five years of roadside assistance.

Logbook servicing is required every 12 months or 15,000km, whichever comes first.

You’re able to purchase a five-year pre-paid service package for $4010. That averages out to $802 per service, which seems like a lot until you see how much Mercedes-AMG charges to service an A45 S.

RS3 owners can also purchase two-year packages to extend the warranty, roadside assistance and servicing coverage. This allows new RS3 owners to have warranty coverage for up to nine years and it’s transferable to future owners.