Mercedes-Benz C350 E vs Lexus RX350H

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.

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.

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.

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.

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.

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.

The range-opening RX350h Luxury 2WD petrol-electric hybrid starts at $86,904, before on-road costs, and for that amount, the standard specification list is healthy. But it doesn’t include everything.

As well as a long list of standard safety gear (see section below), the RX350h comes with three-zone climate control, heated and eight-way adjustable power front seats, electric steering wheel adjust, rain-sensing wipers, a 14-inch multimedia set-up with wired Android Auto and wireless Apple CarPlay, digital radio, sat nav, a 12-speaker audio system, five USB-C (and one USB-A) ports and more.

It is missing a few items, however, that should be standard, such as a head-up display and wireless device charging. Those features are available as part of an options pack - or 'Enhancement Pack' in Lexus speak.

For $5000 more you get those two things and a panoramic sunroof, ventilated seats, a more digital instrument cluster and other goodies. 

You can opt for an all-wheel drive version of the 350h and that adds just over $3500 to the price. If you want the same powertrain but more gear then you’ll need to step up to the $110,575 Sports Luxury.

There’s also the petrol-only RX350 in F Sport and Sports Luxury guise, as well as the flagship RX500h F Sport Performance hybrid that tops out at $124,675.

Looking at the opening price of some of its rivals, Lexus has most of them beat.

The Mercedes-Benz GLE300d starts from $144,900, the BMW X5 xDrive30d is $134,900, Porsche Cayenne starts at $138,700 and the Volvo XC90 B5 Ultimate Bright kicks off from $100,990.

Only the Volkswagen Touareg 170TDI ($89,240) and Jaguar F-Pace P250 R-Dynamic ($83,700) are close on price.

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.

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).

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 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.

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.

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.

The RX comes packed with standard safety gear and the SUV was awarded a maximum five-star crash safety rating from ANCAP in 2022.

Just some of the inclusions are auto emergency braking with pedestrian (day/night), cyclist (day/night) and motorcyclist (day) detection, intersection assist, emergency steering assist, driver monitoring, lane keeping aid and lane departure warning, adaptive cruise control, front and rear parking sensors, blind spot monitor (including stationary) with rear cross-traffic alert and safe exit assist to avoid 'dooring' incidents. 

I must say, Lexus’ (and parent company Toyota’s) driver assistance tech has come a long way.

In the early days of the pandemic during a rare non-lockdown period in Melbourne, I drove from Melbourne to Sydney in the previous-generation Lexus RX200 Sports Luxury.

The lane keeping system and adaptive cruise control were shockingly underdone. The cruise control would simply stop working when you encountered even a slight downhill section. 

Not anymore. The new, smoother lane keeping set-up uses subtle wheel adjustments, unlike the ping pong effect of the previous RX, and the cruise system is now very much in control of the speed.

The Lexus safety suite now operates without too much intervention and is hard to beat among its key rivals.

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.

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.