Mercedes-Benz C350 E vs Cupra Terramar

What's the difference?

Plug-in hybrids will probably not appeal to all buyers, but in the premium space they make sense.

Smooth electric driving paired with the potential for weekend trips outside the 100km-or-so range make the C350e a decent thing, let alone its price parity with the C300.

It still doesn’t top the charts for value or practicality, but even aside from the PHEV tech, the C350e remains a fun-to-drive sedan that holds its own in the executive space.

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

The Cupra Terramar VZe looks fantastic on the road and confidently handles most things you throw at it. The plug-in hybrid set-up offers a nice blend of performance and efficiency. But… when you start digging into the price and ownership promise and what you do (and don’t) get for your money, it doesn’t always feel like the most compelling package. Sexy and sporty? Definitely. Value-for-money? Mmm.

The C350e doesn’t depart massively from the familiar visual formula that is the current ‘206’ generation C-Class and that’s no bad thing.

Call it conservative if you like, but having seen what’s possible when Mercedes takes risks (hello EQ models), the traditional Mercedes design language is put into healthy perspective. 

Handsome proportions and lines without any fuss - there are no unnecessary creases or panels or materials.

The plug-in C350e comes, as mentioned, with the AMG Line pack, adding 18-inch five-spoke AMG wheels, an AMG front apron, grille insert, and of course EQ Hybrid badging.

The pack also includes AMG Line styling inside, where you’d have to be a Mercedes regular to spot the specifics. The AMG-style steering wheel and seats are the biggest giveaways.

Design is one of the areas where the Terramar makes a strong first impression. It’s sharply styled, and very much aimed at buyers who aren’t quite ready to let go of their sportier tastes, even if their car choice suggests otherwise. The stance is wide, the proportions are tidy and those 20-inch copper alloy wheels do a lot of the heavy lifting visually.

Up front, the grille features a triangular LED lighting signature that, for anyone who grew up with it, looks a little like the Triforce (Zelda). Around the back, there’s a full-width light bar with a 3D illuminated logo which enhances the overall 'cool-edge' style the Terramar has.

Inside, that same theme carries through. The cabin is clean but still visually interesting, with plenty of soft-touch materials and leather throughout. Copper-coloured accents are used generously but not to the point where it feels overdone and give it a firm identity.

The optional panoramic roof lifts the space and the 12.9-inch central display sits front and centre, giving the cabin a properly high-end feel.

The space inside the C-Class remains straight-forward as ever. The layout and features don’t stray from convention, meaning there’s a sizable central screen, digital driver display, central cupholders, and places to put things like a phone, with wireless charging included.

The electrically adjustable seat and steering column make getting into a comfortable position easy, and the memory settings keep it that way.

While physical buttons are scarce, the key controls are easy to access via the central multimedia touchscreen and there’s a lack of complicated sub-menus. It's a refreshingly straightforward system compared to some from rivals, especially that of former category benchmark BMW.

There are fewer than a dozen main tile buttons on the menu, and they’re clear and easy to work out. The main screen also defaults to the navigation, and the climate controls are always visible on the touchscreen.

The central storage area is laid out so a phone sitting in the charging pad is slightly hidden, meaning it’s not a distraction, plus the cover means the cupholders and storage can be hidden away. Tidy!

The AMG-style steering wheel’s haptic controls can be used as regular buttons, but more than once on the test drive I nudged the volume and turned my music back on, just a minor annoyance.

In the second row, there’s generous space for a mid-size sedan, and the seats are comfortable for an adult to ride along for a lengthy trip.

There’s a centre armrest, hidden cupholders, and a generally light and open feeling thanks to the panoramic sunroof.

The battery for the hybrid system sits under the second row seats, which means there’s no uneven flooring in the 315L boot.

In terms of practicality, the Terramar feels a little mixed depending on where you’re sitting.

Space and comfort first. The front row is where it feels most at ease. The sport seats are supportive, with enough adjustment to stay comfortable on a longer drive and the added heating and driver’s memory function round things out nicely. That said, elbow room can feel a little tight if you’re sitting alongside someone broad-shouldered.

The rear row is more of a compromise. Legroom behind my driving position is on the tighter side, and for context, I’m 168cm, though headroom holds up reasonably well, even with the panoramic roof. The shape of the seat base and storage cut-outs also make the bench feel narrower, so it’s better suited to two adults than three.

Storage is about what you’d expect, without really exceeding it. Up front, the glove box is the largest cubby, supported by a centre console, a phone cradle and a pair of cupholders, although they’re different sizes, so only one emotional support bottle will fit.

In the rear, it’s a similar story. You get a couple of bottle holders and cupholders, but you miss out on map pockets.

On the tech and amenities front, most functions are housed within the 12.9-inch media display. The graphics are clear and the touchscreen is responsive, though the touch-based climate controls underneath it can be fiddly at times. That said, the overall layout becomes fairly intuitive after a short adjustment period, even if physical buttons would still be welcome.

Connectivity is well covered, with wireless Apple CarPlay and Android Auto, the former holding a steady connection during my time with it, along with built-in navigation. Charging options are solid, too, with four USB-C ports across the cabin, a 12-volt outlet and a wireless charging pad.

The rear gets its own climate control, though without fan speed control, and again, at this price point, it feels like there’s room for a little more in the way of convenience features - particularly things like heated outboard seats.

At the back, boot space comes in at 400L, which is the smallest in the Terramar range due to the battery placement. It’s broadly in line with key alternatives like the BYD Sealion 6 Premium, which offers slightly more capacity, but the difference isn’t dramatic in day-to-day use.

In practice, it’s been enough for a week of errands with a small family, and the flat loading floor and powered tailgate make it easy to live with. There’s no spare tyre, though, just a puncture repair kit, which won't suit everyone.

The new Cupra Terramar is available in four grades, and we’re in the flagship VZe, the only one to feature a plug-in hybrid powertrain, priced from $77,990, before on-road costs.

Given where it sits, there’s still not a lot that lines up neatly against it. The closest is probably the Volkswagen Tiguan eHybrid R-Line, expected to land at around $74,550, before on-roads, along with the Mitsubishi Outlander PHEV EV GSR from $73,990 MSRP.

Beyond that, you start to drift into more value-focused territory with options like the BYD Sealion 6 Premium ($52,990, MSRP), Chery Tiggo 7 Super Hybrid Ultimate ($43,990, drive-away), and GWM Haval H6 GT Ultra ($50,990, drive-away). So, significantly cheaper, while still offering a fairly generous level of equipment.

As for the Terramar VZe, it doesn’t arrive empty-handed. You get leather upholstery, electric front seats with heating, a heated steering wheel, wireless Apple CarPlay and Android Auto, 20-inch alloy wheels, a full LED light suite, a 12.9-inch media display, 10.25-inch digital instrument cluster and a 12-speaker Sennheiser sound system. There’s also built-in navigation, four USB-C ports, a 12-volt socket and a wireless charging pad.

It’s a solid list but at this price point a couple of omissions stand out. Front seat ventilation isn’t offered, there’s no heating for the rear outboard seats and the panoramic sunroof, which feels like it would round things out nicely, is still a $2000 option.

None of those are deal-breakers on their own, but in this part of the market, they’re the kind of details that you'll notice.

The C350e’s plug-in hybrid drivetrain consists of a 2.0-litre turbo-petrol four-cylinder engine and an electric motor that drives the rear wheels via a nine-speed automatic transmission.

The combustion engine’s peak outputs are 150kW and 320Nm, while the 95kW/440Nm electric motor works with it to land on a total system output of 230kW and 550Nm.

While it’s not lightning quick, the C350e has a decent claimed 0-100km/h sprint of 6.1 seconds, and from the driver’s seat it certainly feels brisk enough to get out of its own way.

Under the bonnet, the Terramar VZe pairs a 1.5-litre, four-cylinder, turbo-petrol engine with a single electric motor, for a combined output of 200kW and 400Nm.

On paper, those figures sit a little behind some of the more value-focused plug-in hybrid options, like the BYD Sealion 6 Premium and GWM Haval H6 GT, and it’s also front-wheel drive, where some rivals offer all-wheel drive.

In practice, though, it doesn’t feel underdone. The six-speed automatic shifts cleanly and the transition between electric and petrol power is smooth. As a whole, the set-up feels well calibrated.

Mercedes officially claims the C350e has a driving range of 104km under NEDC testing, with a 25.4kWh battery supplying the juice.

Official fuel use is just 1.5L/100km, but Mercedes says that becomes 7.6L without any battery charge to help it out.

Under standard 11kW AC charging, it’s about two hours from flat to full, but with the optional 55kW DC fast-charging, it takes about 20 minutes from flat to 80 per cent.

The VZe uses a 20kWh lithium-ion battery, which is on the smaller side compared to some alternatives but it still delivers a useful amount of electric driving range at 109km (WLTP).

With its Type 2 CCS charging port, you can access DC fast charging at up to 50kW, with a claimed 0-80 per cent top-up taking around 26 minutes. On AC, it’s more of an overnight affair, so it suits a home charging routine.

Officially, energy use is rated at 1.8L/100km on the combined (urban/extra-urban) cycle, and after a mix of highway and urban driving, I saw a trip computer figure of 1.5L/100km.

That’s an impressive result but it comes with a bit of context. I'm charging it daily to make the most of the claimed electric-only range, and that has a big influence on the numbers you’ll see in the real world.

The C350e has a few drive modes that are mostly self-explanatory, those being Battery Hold, Electric, Hybrid, Sport and Individual.

You’ll likely find yourself using Electric and Hybrid most of the time, so we’ll focus on those. Sport is fine but somewhat defeats the purpose of the plug-in system for day-to-day driving.

In electric mode, the C350e doesn’t feel like it’s lacking any power without the engine helping it along. Acceleration is smooth, brisk enough, and a 130km/h top speed means you won’t need the engine on your commute.

Realistically, its 104km range is probably somewhere closer to 80km, but covers you for a decent daily distance.

Let the car use the engine to help out via Hybrid mode and, if you’ve got music playing, you might not notice the engine starting and cutting. The system is smooth and it means a much longer life out of the battery before needing to charge. That, and there’s the benefit of more brisk acceleration thanks to the hefty 230kW/550Nm total outputs.

Everything else about the C350e is classic C-Class - the ride is controlled and the suspension does a decent job of soaking up bumps and rough roads, the comfort and self-levelling suspension makes cornering smooth and inspires confidence.

The most noticeable shortcoming for the car is its transmission hesitation if you put your foot down quickly, though the ability to use the paddles to choose your own gears in Sport mode avoids this.

In Electric or Hybrid, the paddles decide how much braking regen to apply, a useful feature that lets you recuperate some power for the battery if your drive includes a lot of downhill slopes or if you’re avoiding relying on the brake pedal.

The C530e’s extra weight doesn’t dull its driving characteristics as you might expect from a car laden with PHEV tech, so it’s a welcome surprise that you could pick up a plush plug-in for the same price as a combustion C300.

On the road, the Terramar VZe makes an immediate impression. Power delivery is prompt, and even with the battery depleted, it feels responsive off the mark. There’s enough in reserve that you don’t feel like you’re chasing performance, even when you lean on it.

The handling follows a sporty brief. Suspension tuning does a good job of smoothing out the bigger bumps, but it still lets a fair amount of road feedback in, particularly when you’re pushing through a corner. The steering is on the firmer side and the brakes are quite sensitive, which takes a moment to adjust to, but together they give the car a more engaged feel. That said, it won’t be to everyone’s taste.

Visibility is one area that takes a bit more effort. The lower window line and thicker pillars give it a more enclosed feel than a typical mid-size SUV, so you find yourself being a bit more deliberate with blind spot checks, particularly around the A-pillar.

Ride comfort holds up despite the firmer set-up, and the sports seats do a good job of keeping you settled. Around town and under electric power, the cabin is impressively quiet, though you notice more road and engine noise creeping in at highway speeds or under heavier acceleration.

Around tighter spaces, it feels smaller than it is. The 11.5-metre turning circle and quick steering make it easy enough to manoeuvre, and the 360-degree camera is a useful addition, although the image quality doesn’t quite match the expectations set by the price point.

On the safety front, the Terramar holds a maximum five-star ANCAP rating from 2025 testing and comes equipped with seven airbags.

The standard active safety suite is comprehensive, covering the essentials like lane keeping aid, lane departure warning, lane centring, forward collision warning, blind-spot monitoring, rear cross-traffic alert, driver attention monitoring and a side-exit warning system.

In use, the adaptive cruise control is well calibrated, though the steering assist is a little overzealous. It requires quite a firm hold on the steering wheel to override warnings or prevent emergency intervention... like braking, as it did me going 80km/h in a tunnel.

It’s also worth noting a couple of omissions. There’s no emergency call functionality, and hill descent control (HDC) isn’t included.

The autonomous emergency braking has junction, car, cyclist, motorcyclist and pedestrian detection and is operational form 5.0-85km/h (up to 250km/h for car detection).

Mercedes has a five-year, unlimited kilometre warranty which is decent for a premium brand.

Servicing is pricey, though. 

A three-year pack covering a service every 12 months (or 25,000km, whichever comes first) costs $3355, that being just three services.

Four years costs $4630, or five includes a more expensive service and brings the total to $6890. That’s an average of $1378 per service.

Finding somewhere to spend that money shouldn’t be hard as there are 100 dealers listed in Australia.

In terms of ownership, the Terramar is covered by Cupra’s five-year, unlimited-kilometre warranty. That’s fairly standard for the segment, though it sits behind some rivals now offering longer seven-year plus programs. Inclusion of five years' roadside assistance is a welcome addition.

Servicing can be pre-purchased with either a three- or five-year plan, with the latter priced at $2590, which is in line with what you’d expect for this class. Intervals are set at every 12 months or 15,000 kilometres.

One thing to keep in mind is the size of the Cupra service network. It’s still relatively limited, with around 14 centres nationwide, so depending on where you’re based, that may take a bit more planning.