Mercedes-Benz E-Class vs BMW 118i

What's the difference?

The Mercedes-AMG E53 Hybrid 4Matic+ is a superb blend of high-tech hybrid muscle and cossetting top-end luxury. Value is competitive, it looks (and feels) the business, despite the conventional sedan configuration it’s surprisingly practical (except for the modest boot), fuel-efficiency is a key benefit and safety is stellar. The ownership proposition is okay for the category but that’s not top of mind when an enticing series of corners ranges into view. It’s an impressive package.

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

The 118i has restored my faith in entry-level models from premium brands. Could it do with more standard gear? Absolutely, especially at $50K, and given what you could get in a higher-grade variant from a mainstream manufacturer, like the Mazda3 or VW Golf.

But the 118i is a cut above the mainstream hatchbacks in terms of performance, driver engagement and how the car makes you feel. 

If value is the priority, look elsewhere. But if your budget stretches this far and you can live without some of the luxo features, there’s little to complain about with the 118i hatch.

At first glance the E53 passes as a flash-looking Mercedes-Benz E-Class running 20-inch rims, especially in the launch car’s rich ‘Patagonia Red’ finish.

But then, there’s something about the AMG sedan’s stance that sets it apart. Which makes sense because the front fenders are wider by 11mm on both sides (compared to the E-Class) to make room for a wider front track (increased by just over 30mm over the previous-generation E53).

Wheelbase has also increased by just over 20mm to almost 3.0m and the car’s more aggressive nose treatment enhances the distinctive look.

There’s the AMG-specific radiator trim with ‘Panamericana’-style vertical slats, the sleek dual-section headlights and a large lower inlet that directs air to an additional front intercooler as well as an external opening for a wheel-arch cooler.

In profile there’s barely a hard edge to be seen, although character lines in the bonnet and along the car’s flanks contribute to a taut surface treatment.

At the rear, horizontally-connected LED tail-lights feature a stylised Mercedes three-pointed star signature, then a rear apron housing a diffuser and twin double tailpipe ‘trims’ and a bootlid spoiler on the left and right round off a beautifully proportioned design.

Climbing inside means a trip to screen city with an upright digital display in front of the driver flanked by a large central screen to the left and an additional panel for the front passenger beyond that. It’s a lot.

But once you’re on top of all the glass surfaces, details like open pore grey ashwood trim on the lower console come into focus, as do the brushed metal accents, beautifully sculpted ‘Performance’ front sports seats (optionally fitted to our launch drive example), racy stainless steel pedal covers and the five spoke AMG performance steering wheel with configurable rotary buttons.

It’s a supremely luxurious and comfortable interior. 

Since the first-generation model arrived on the scene in the early 2000s, the 1 Series has had a slightly awkward design, partly due to the rear-wheel drive underpinnings. But this latest third-gen model, that debuted in 2019, is by far the most sleek and stylish yet. 

This is helped by the slimline tail-lights, rising shoulder line and well-executed front-end design with the signature BMW quad headlights and wide 'kidney' grille. 

In Australia the 118i comes as standard with 'M suspension' that lowers the ride height by 10mm, which gives it even more of a hunkered down look. The 'Black Sapphire' paintwork of the test car also upped the sexiness of the little hatch.

The 1 Series, and its competitors from Benz and Audi, are all visually appealing in different ways, ensuring they will each appeal to different buyers. 

The interior design is unmistakably BMW, which hasn’t evolved significantly for about 15 years. Although new-generation models like the iX and the soon-to-launch X1 SUV prove that BMW can evolve.

BMW’s overall dash design and layout isn’t a million miles away from the edgy angular look of the new Audi A3 - and that’s no criticism.

The mixed synthetic leather and cloth trim on the seats has a cool blue cloth motif to break up the grey and add a small splash of colour to the cabin. Matching blue stitching on the dash and doors is a nice touch.

At over 4.9m long, close to 2.1m wide and a little under 1.5m tall, with a 2961mm wheelbase, the new E53 is a substantial car and feels it on the inside.

Plenty of breathing space for the driver and front passenger thanks in part to the away slope of the screen-dominated dash.

Generous storage, too, with large door bins including enough space for big bottles, a deep lidded box between the seats (which doubles as a centre armrest), a generous glove box and two cupholders under a sliding top at the front of the centre console. 

Hit the second row, and sitting behind the driver’s seat, set for my 183cm position, I have plenty of head and legroom, with enough shoulder space for three adults on short journeys. A trio of up to mid-teenage kids will be fine for a road trip.

Storage is pretty handy as well with hefty door bins and two pop-out cupholders in the fold-down centre armrest. No map pockets on the back of the (optional) Performance front seats, though.

Four-zone climate control means there’s individual temperature control for each side of the back seat, with adjustable vents at the back of the front centre console and trailing edge of the B-pillars. Very civilised.

Power and connectivity runs to three USB-C outlets and a wireless device charging pad in the front.

Thanks to the traction battery under its floor, boot volume is restricted to 370 litres (compared to 540L in the conventional E-Class sedan), although there are bag hooks, tie-down anchors and the 60/40 split-folding rear seat is able to liberate more space.

No spare tyre of any description, just a repair/inflator kit, which might make sense for automotive designers and engineers trying to maximise space and reduce weight, but doesn’t make sense for an owner stranded on the side of the road with an unrepairable puncture.

Up front the 118i’s sports seats offer unbelievable levels of lateral support, and despite the bolsters being adjustable, it might be a little too snug for some. It’s expected for a pricey hot hatch but not the lower grade 1 Series. And given how much side support there is, it could do with a touch more under-thigh padding. The driver’s seat is power adjustable while the front passenger has to adjust their seat manually.

The typically chunky BMW M leather steering wheel looks and feels expensive and offers good grip. The minimal steering wheel controls are well labelled with text or clear icons. I appreciated the analogue air conditioning controls instead of them being buried in a multimedia screen menu.

The multimedia system menu is unfussy and while it’s not as tech heavy as some other systems, I don’t see that as a negative. It just means there are fewer functions you’re forced to remember. You can control the system via the 'iDrive' controller in the centre console or it can be used as a touchscreen. I like the way users are given both options. The 10.25-inch screen is nice and wide but quite narrow. Overall, BMW’s operating system is easy to use and functions well.

In terms of devices, the 118i has a wireless charging pad, as well as a USB-A and USB-C port, and a 12-volt charger up front.

It has a smallish central bin, but it’s fine for a number of smaller items. Tall bottles fit easily in the door storage bin and there’s a secondary slot for other items. The 118i comes with a decent sized glovebox, and two front cupholders with a nook for phones just behind it.

The 118i is more spacious than anticipated, especially in the second row. The back of the front seats are scalloped, allowing for a little extra knee room, but there is a good amount of legroom generally, and plenty of headroom, despite the lower roofline. 

The rear seats are on the flat side but still comfortable, and there are ISOFIX points on the two outboard seats.

Rear seat occupants have access to map pockets, two more USB-C ports, and storage for big bottles in the doors (just), but there are no rear air vents. The seats fold 60/40 and there’s no central armrest.

Open the hatch and you’ll find a reasonably sized boot that can swallow 380 litres, expanding to 1200L with the rear seats stowed. There is plenty of under-floor storage because there’s no spare tyre on account of the run-flats favoured by BMW. There are, however, a couple of tie-down anchors and shopping bag hooks.

The 118i kicks off the BMW 1 Series range from $49,900, before on-road costs. From there you can step up into the warmed over 128ti from $58,900, and the range is topped by the spicy all-wheel drive M135i xDrive in Pure ($67,900) or regular guise ($72,900).

The 118i’s circa-$50K price tag is a lot for an entry-level small hatchback, but it seems BMW has become better at including standard gear in its base variants. But it’s still not what you’d call generous.

Standard equipment in the 118i includes single-zone climate control, a head-up display, LED headlights and fog lights, an 'M aerodynamics' package, leather steering wheel, sports seats, a six-speaker audio system, auto-dimming rear-view mirror, rain-sensing wipers, 'M Sport' suspension, wireless smartphone charging, a 10.25-inch digital instrument cluster, and a 10.25-inch multimedia screen with satellite navigation, digital radio and Apple CarPlay. 

The only option fitted to the test car was premium paint ($1308) which brought the price-as-tested to $51,208, before on-road costs.

So there’s some good tech on the list, but there could be more premium features, you know, given it’s a premium brand, and all. Heated seats would be nice, for example.

Unsurprisingly, BMW offers a number of different options packs ranging in price from $1700 to more than $4000, depending on what you want.

Its two closest rivals are of course from the other big Germans - the Mercedes-Benz A180 (from $49,890) and Audi A3 35TFSI ($47,100) hatchbacks. The level of standard gear is relatively even across the three, although the Audi has the lead when it comes to safety (more on that below), hardly surprising given it's the newest of the three.

There’s also the question of value, especially when you compare with high-grade small hatchbacks from mainstream brands. Models like the Mazda3 X20 Astina ($43,190 BOC), or Honda Civic VTi-LX ($47,200 drive-away) could be good alternatives, or for similar money you could get into something sporty like a Hyundai i30 N Premium (from $48,000 BOC) or for a few grand more there’s the Volkswagen Golf GTI ($54,990 BOC).

The E53 is powered by a 3.0-litre, turbo-petrol, in-line six-cylinder engine working in concert with an electric motor housed within the car’s nine-speed (torque-converter) automatic transmission. 

Drive goes to all four wheels via an electro-mechanically controlled clutch distributing power between the front and rear axles.

Engine performance is up by around 10kW compared to the previous E53 thanks to software upgrades, a new twin-scroll turbo with higher boost pressure (1.5 bar vs 1.1 bar) as well as additional front and wheel-arch intercoolers. 

The engine alone produces 330kW/560Nm while the permanently excited synchronous motor chips in with a solid 120kW/480Nm for overall outputs of 450kW/750Nm.

The 118i is powered by a three-cylinder turbocharged petrol engine, offering up 103kW of power and 220Nm of torque. It’s the same unit found in the Mini Cooper, albeit uprated by 3kW for the BMW.

It is front-wheel drive and the engine is paired with a seven-speed dual-clutch automatic transmission.

BMW says the 118i can cover the 0-100km/h sprint in 8.5 seconds.

If you’re after a quicker 1 Series, then the 180kW i28ti or 225kW Mi35i xDrive could be a better pick.

The E53’s official combined cycle (urban/extra-urban) fuel figure is 1.7L/100km, a spectacularly frugal number for such a high-performance machine. But it’s worth noting it’s predicated on the drive battery being constantly and completely recharged.

Speaking of which, the 28.6kWh, 400-volt traction battery is housed at the rear of the car under the boot floor. It delivers a claimed EV-only range of up to 100km, although that will diminish dramatically if you decide to push up towards the car’s pure-electric top speed of 140km/h.

Important to note the battery’s 21kWh ‘day-to-day’ capacity, designed to keep charge in reserve for any required ‘high-performance boosts’.

An 11kW AC charger is onboard with regenerative braking also harvesting energy, the car automatically selecting the level of recuperation power in line with traffic conditions.

In pure EV mode you can also manually adjust regen through four levels via the steering wheel-mounted transmission shift paddles. 

Auto stop/start for the engine is standard and 98 RON premium unleaded is recommended, although 95 RON is okay at a pinch.

The E53’s official fuel consumption figure and 50-litre tank capacity translate to a range approaching 3000km! But to bring that down to earth somewhat, on the launch drive program, covering urban and mostly highway running, we saw a (dash indicated) average of 6.4L/100km, which equates to a more realistic, but still lengthy, 780km between fills.

According to BMW, the 118i consumes 5.9 litres of fuel per 100 kilometres. During my week of mixed driving with the hatch, I recorded a much higher average figure of 10.8L/100km. This was exacerbated by the fact I did my main test drive shortly before returning the car. It was much more efficient around town.

It has a 50-litre fuel tank and does require premium 95 RON petrol. In terms of CO2, the 118i emits 135g/km.

If you’re lining up for a Mercedes-AMG you want an optimal blend of luxury and performance and the E53 Hybrid 4Matic+ nails that delicate balance.

With 450kW (that’s 612hp!) and 750Nm under your right foot, engaging ‘Race Start’, pushing the accelerator to the floor and letting the car do its thing will result in 0-100km/h acceleration in 3.8 seconds. The fat band of mid-range torque is so satisfying to lean into.

Induction, engine and exhaust sounds combine to produce a suitably gruff soundtrack with the hybrid powertrain operating seamlessly. Hit your preferred track day or tempt legal fate and you can explore the car’s claimed (governed) maximum velocity of 280km/h. 

The nine-speed auto is slick and manual changes using the wheel mounted paddles are rapid.  In normal conditions the AWD system is biased to the rear and an electric rear locking diff helps keep things under control if you decide to get the bit between your teeth on a twisting drive.

A chunky brace links the front suspension strut mounts and the car feels predictable and stable in enthusiastic cornering. Rubber is Michelin Pilot Sport 4S (245/35 fr / 275/30 rr) which grips with satisfying determination but does make its rumbling presence felt on anything approaching a coarse chip surface (despite the car’s standard acoustic glass).

Speed-sensitive power-steering delivers accuracy and good road feel without any jitters, the standard active rear-axle steering playing its part. The ‘turning point’ is 100km/h with the rear wheels subtly turning in the opposite direction to the fronts up to that speed and in the same direction beyond it.

‘AMG Ride Control’ combines steel spring suspension (strut front, multi-link rear) with adaptive adjustable damping for the choice of ‘Comfort’, ‘Sport’ and ‘Sport+’ settings. Comfort is the pick for B-road running on typically uneven surfaces. The optional ‘Performance’ sports front seats are comfortable and grippy in equal measure. 

Braking is by ventilated composite rotors all around, with beefy four-piston fixed calipers up front. An electro-mechanical brake booster is designed to combine electrical recuperation with the hydraulic brake for more frequent and efficient energy harvesting over a longer period of time. The pedal feels firm and progressive with smooth initial bite. 

All around vision is good for a conventional sedan with a quality reversing camera, 360-degree overhead view and front and rear parking sensors helping massively with parking duties. That said, a 12.5m turning circle isn’t tiny.

To be honest I wasn’t particularly hopeful of an engaging driving experience with the 118i given I have been underwhelmed by the base Mercedes-Benz A-Class. But after a week with the 1 Series, I reckon it might well be the pick of the premium players in this segment.

The 118i is also a much more enjoyable car to drive than the entry-level version of the outgoing X1 SUV with which it shares a powertrain. If you don’t need the extra cargo space or the ride height of the X1, then please test drive the 118i just to see what you’d be missing if you opted for the X1.

BMW has always excelled when it comes to building punchy powertrains for driver’s cars, and that continues to be true, even for its smallest internal combustion unit.

The 103kW/220Nm turbocharged three-pot is smooth yet responsive, offering linear power and torque delivery and acceleration that will bring a smile to your face.

Obviously it’s not as quick as its sportier 1 Series siblings, but make no mistake, you can still have fun in a 118i.

There’s a little bit of lag when taking off and some hesitation from the seven-speed dual-clutch transmission during shifts, but neither are deal-breakers.

That obsession with driver engagement has paid off with the steering which is quick and direct.

The suspension is geared towards dynamism and as a result of that, and the sharp steering, you’ll be seeking out the nearest twisty section of road every time you get behind the wheel. It’s planted in corners with excellent road-holding characteristics.

Unfortunately that dynamic tune, and the low-profile tyres, means the ride is on the firmer side and a little jiggly around town, but it settles at speed. 

In terms of visibility, the 118i has huge B- and C-pillars, small rear side windows and a narrow rear windscreen, so you’ll be relying on the parking sensors and camera. The 11.4m turning circle feels large for a small car, too. 

The cabin is well insulated from some outside noise but coarse chip roads will make their presence felt.

The 1 Series range was awarded the maximum five-star rating from crash safety watchdog, ANCAP, in 2019.

The 118i comes with front and rear parking sensors, reversing camera, cruise control, low-speed auto emergency braking, forward collision warning, rear cross-traffic alert, lane departure warning, driver fatigue detection, and six airbags.

It is not fitted with a front centre airbag to help mitigate against injury between the driver and front passenger in a side collision. Only the Audi A3 has this out of the three Germans in this segment.

In this grade, the 1 Series is fitted with regular cruise control, rather than the adaptive system that moderates speed according to the speed of the vehicle ahead. It is a surprise to see the more old-school system in a BMW.

The lane keeping aid works well, smoothly centring the vehicle in the lane when required.

The Mercedes-AMG E53 Hybrid 4Matic+ is covered by a five-year/unlimited km warranty with the high-voltage battery covered for eight years/160,000km. Those terms match the key players in the premium and luxury parts of the market.

Mercedes-Benz ‘Road Care’ assistance is included for the duration of the main vehicle warranty. 

Maintenance is recommended every 12 months/25,000km, with service plans offered across three- ($4110), four- ($5410) and five-year ($7570) periods. That’s an average of around $1350 for the first two and $1500 for the last one. That added powertrain complexity obviously has an impact in the workshop.

BMW continues to offer a three-year/unlimited kilometre warranty for its models, which is disappointingly a couple of years off most rivals these days.

The German giant also does things a little differently when it comes to servicing. Instead of service schedules, it has ‘condition-based servicing’, which is when the vehicle’s computer will inform you when the car needs a service. 

BMW’s Service Inclusive pre-paid plan runs for five years or 80,000km for the 1 Series, and costs $1700 up front when you buy the car. That averages out to about $340 per service, which isn’t bad for a premium marque.