Mercedes-Benz E-Class vs Lexus IS

What's the difference?

It's nice to see the E-Class still embody the ancestral heritage of Mercedes-Benz, a brand which has had much change forced upon it in the last decade.

This hybrid one in particular does a remarkable job of blending the future and the past in one deeply capable and customisable package, but not one without its flaws.

While the E 300 e manages to unite these elements nicely, it's ultimately held back by its classic rear-drive underpinnings which have consequences for packaging and electric range.

Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.

While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.

The E-Class recently received a significant facelift to bring it in line with the brand's latest design ethos, and it serves to refine an already elegant sedan.

The E-Class isn't just the brand's definition by reputation, but by its look, too. While some may be disappointed by how similar it now looks to the C-Class below, or the S-Class above, giving the core Mercedes sedan range near identical silhouettes, it cuts a unique path from its traditional rivals.

BMW's 5 Series leans into a sharper and more aggressive design language, while Audi's A6 does much the same with a post-modernist edge.

I'd argue the stoic Germanic stare of the E-Class’ softer face places the Mercedes exactly where it needs to be, but it doesn't stray from its sporty rear-drive underpinnings entirely.

The car's new blacked-out highlights accentuate its width, and the 10-spoke alloys on our test car fill the wheelarches and draw your eye to the car's low stance and big brakes.

A classic Benz beltline runs from the front lights to the rear, uniting a tidy and clearly well-built package.

Inside and the more luxury-focused touch of the E-Class compared to rivals is evident. Lavish wood trims work their way through the doors and across the grandiose dash, and while the flashy screen fittings from the wider Benz range are present here, the interior is toned down several notches from the glitz of the brand's smaller vehicles.

This offers it a much more stately ambiance, matched by the synthetic leather ‘Artico’ seats which are more like lounge chairs you sink into.

The overall design links the E-Class with its siblings nicely, and there are a lot of the brand's re-imagined classic touches present, like the circular climate vents, wooden panel inserts, and silver-tinged toggles which run down the centre.

It's not all retro, though, with the E-Class wowing observers with its giant single gloss panel hosting the multimedia suite and digital dash elements.

Obviously, you can go further here, with a long list of optional interior colour and trim combinations to customise the E-Class to your heart's content, although I was happy with the classic black on brown woodgrain of our test car.

Look closely and quite a lot has changed. This is really a story of doing a facelift right. Lexus has kept all the great-looking bits of the car that launched in 2013, like its striking side profile and angular accents, while dumping most of its least popular elements like the spidery front light-clusters and busy front splitter, in favour of something more refined and conservative.

It even adds some new flair in the rear three-quarter, with dramatic LED light-clusters working their way into a trendy highlight strip across the boot lid.

These changes all add up for a much tougher, sportier, and nuanced design compared to the outgoing car. One that manages to make an eight-year old design look as contemporary as ever.

I even liked our test car in its plain black shade, although I'm less sure about those conservative-to-a-fault, almost Camry-esque alloy wheels.

On the inside, sadly not a whole lot has changed. The busy design looked dated when this generation of IS launched in 2013, and it still looks dated now.

The visual assault of buttons, toggles, displays, textures, and trims is a lot to take in, and makes the cabin feel smaller than it is.

It probably didn’t help the sensory overload of this car’s interior as I hopped out of the stripped-back interior in the Tesla Model 3 I had the week before.

My less-than-impressed brother, a student of design, described the IS’s interior best when he told me “It’s a bit maximalist, don’t you think?”

If nothing else, at least Lexus hasn’t blatantly imitated anyone else when it comes to its interior, but the brand remains firm on dorky design items like the laptop touchpad, redundant drive-select dial, and odd vacant panels under the climate unit which do it no favours.

A welcome upgrade for the 2021 model year is the new media screen, a highlight piece perched atop the dash. It’s bright, has excellent contrast, and doesn’t seem to fall victim to glare.

The Apple CarPlay support I used was seamless and sharp and made the most of the available real-estate in its widescreen layout.

I somehow didn’t mind that the instrument cluster in this base car is analog. It almost suits the IS’s character better than a digital set-up would. Also offered is a small information display between the dials which I used for monitoring the hybrid drive.

A final note on the IS’s design. The fit and finish is quality, inside and out. It leaves you with an impression that this is an immaculately built vehicle, one that should be a must for all luxury cars, and always a strong point for Lexus.

The E-Class takes many forms around the world, and one of them is a taxicab which makes a lot of sense because the E-Class is one of the few cars I've had on test of late that I'd actually like to be driven around in rather than always take the helm myself.

The rear seat space is enormous behind my own driving position, and the detailed luxurious trims continue, complete with the dazzling milled silver speaker fittings, woodgrain trim, and in our test car, rear heated seats.

Again, the seats are ones you simply sink into, and the window is nice and wide for great visibility.

Alongside rear heated seats in our car, amenities include large bottle holders in the doors, flip-out ones in the armrest, hard shell pockets on the back of the front seats, as well as dual adjustable air vents with a lock-off.

The front seats also offer generous space, comfortable and supportive designs, and a lavish space for full-sized adults with a high level of adjustability.

As much as I hate the fact that you have to tick pricey option boxes on an already pricey car, the amenities they afford are properly luxurious.

The seat heating, for example, extends to the armrests in the doors and centre console, and the third climate zone is a necessary touch if you're ferrying around rear passengers often.

While a sedan like this is never going to have the ease of seating of an SUV, there are lots of little areas where this Benz shines.

Proper four-door keyless entry is a nice touch. As is the ability to pre-condition the cabin, the way the doors open nice and wide, and the 40/20/40 split fold of the rear seats allow you to use the centre fold as a ski-port in European style.

Up front, you can customise the digital dash how you see fit, and while the touch panel controls on the wheel and centre console can be clumsy at times, at least there are multiple ways to interact with the system, and a physical dial for volume control hasn't been forgotten.

Over time I've even warmed to the centrally-located touchpad controller. It's easier to use than the one in Lexus products, and it's nice that I have a way to interact with the piano-gloss screen without needing to reach over to it while I'm concentrating on the road (leaving finger prints all over it in the process).

Even things as simple as the car's instruction manual being entirely digitized into the multimedia suite, complete with search function, is just smart.

The layout of the E-Class creates a significant reduction in boot space in this hybrid version, however.

Because it's a rear-drive sedan, it requires the batteries to be awkwardly packaged under the floor and on top of the axle, so the boot floor is an odd, tiered surface, with space reduced from a decent sedan-sized 540 litres (VDA) in purely petrol variants to a hatchback-sized 370L in this PHEV.

As you might be able to tell from the pictures, this shelf arrangement makes the space hard to use, although it did manage to fit our largest (124L) CarsGuide travel case on an angle.

Well, the IS is a sedan, so it doesn’t quite have that high-riding appeal of an SUV, and for this update it has even leaned further into its low-slung proportions with a roofline that descends a further 15mm and a boot lid which is 31mm lower overall.

As with the previous car, the interior is quite closed-in thanks to that busy dash design and large centre console. Rather than feeling claustrophobic though, it is best described as cosy, with lots of plush finishes throughout the doors and centre stack befitting a luxury nameplate.

Adjustability is great for the front two occupants and there are two large bottle holders between the seats, a large but shallow console box under the armrest, bottle holders with adjoining bins in the doors, and a smallish glove box.

That’s about where storage ends though, with no extra trays or bins in front of the oddly placed shifter, just an awkwardly finished plastic panel where it feels like a little tray or storage cutaway should be.

The touchpad for operating the media screen joins an unnecessary drive-select cluster in eating up centre console space where there could be more storage.

The rear seat is quite limited on space despite being lavishly trimmed. I fit behind my own (182cm/6'0") driving position with little knee or headroom to spare.

Again, it’s cosy and very comfortable, but if you're taller or wider than me you may run into issues.

The centre rear seat is all but useless for adults, with the IS’s rear-drive architecture necessitating a huge transmission tunnel that almost comes as high as the seat base itself.

Storage is limited to pockets on the back of the front seats, small bins in the doors that double as handholds, and a drop-down armrest with two bottle holders.

There are no power outlets for rear passengers, but there are dual adjustable air vents.

Boot space is 450L which is a little small for the class. It’s impressive the hybrid only managed to lose 30 litres compared to petrol-only IS variants, though, so best to count your blessings.

The largest CarsGuide travel case easily fit in the wide but short available space.

To be precise the variant we’re looking at here is the IS 300h Luxury. It’s the base IS trim with the hybrid powertrain and it wears a before on-road costs (MSRP) of $64,500.

Base car or not, the new IS is very well specified. Now standard are 18-inch alloys (up from 17s), full LED headlight clusters, eight-way power adjustable front seats, dual-zone climate control, 10-speaker audio system, and importantly a brilliant new 10.3-inch multimedia screen with widescreen Apple CarPlay, Android Auto, built-in navigation, and DAB+ digital radio support.

Keyless entry and push-start ignition also continue to be offered, as well as a leather-look interior trim which in our car was in a rather contrasting 'Ochre' colour option.

Our IS 300h was also fitted with the creatively named ‘Enhancement Pack 1’ which adds an openable moonroof for $2000. The significantly more expensive ‘Enhancement Pack 2’ ($5500) adds the moonroof alongside 19-inch alloys, upgraded LED headlights, interior ornamentation, scuff plates, a panoramic reversing camera, 17-speaker premium audio, ‘leather-accented’ interior trim, ventilated front seats, and an electric rear sunshade.

These packs are seemingly largely unnecessary but are also very cheap for a brand at the premium end of the market.

Lexus has made pretty much all of its high-end active safety equipment standard on this base ‘Luxury’ for 2021, alongside some previously unavailable tech which we’ll take a look at in the safety section of this review.

At this price the Lexus IS 300h goes into battle against the Mercedes-Benz C 200 ($66,900), BMW 320i ($70,900), Audi A4 35 TFSI ($55,900), and the ever-looming threat of Hyundai’s Genesis, which offers its similarly-sized G70 in base form at $59,300.

Some of these base-spec rivals are cheaper, some are more expensive, but did you notice none of them are hybrids?

Access to Toyota’s affordable and popular hybrid drive is a real point of difference for the Lexus brand, and we expect it’s a key drawcard for the loyal customer base. More on that later.

The E 300 e has a 2.0-litre turbocharged four-cylinder petrol engine producing 155kW/350Nm mated to a nine-speed torque converter automatic transmission, driving the rear wheels.

The transmission contains an electric motor which is capable of producing 90kW/440Nm on its own, allowing full range of motion in the ‘Electric’ driving mode.

It is also capable of hybrid assistance to the petrol motor, making the E 300 e the fastest non-AMG-badged E-Class model to 100km/h, with a claimed sprint time of just 5.7 seconds.

It also has a 13.5kWh lithium-ion battery pack, which is good for a claimed electric-only driving range of 51km (on the more lenient NEDC testing cycle).

It's a complex mix of gear, and the electric range I experienced was certainly less than 40km. In other words, it's used up very quickly.

The Benz offers some interesting driving modes to help with this, which we'll explore later in this review.

The IS 300h does stand out from the luxury sedan crowd by offering a hybrid drivetrain at a reasonable price. Some rivals offer plug-in options further up the price scale cementing them as a niche option, but the beauty of this Lexus is its very mild $3000 price jump over the base petrol car.

The base car’s 2.0-litre turbo is dumped in favour of a 2.5-litre non-turbo Atkinson-cycle four-cylinder hybrid set-up similar to the one proving popular in the Toyota Camry and RAV4.

The petrol engine produces 133kW/221Nm on its own, and the electric motor produces 105kW/300Nm. Toyota says the “combined system output” of this is 164kW.

Either way, that's less than the base 2.0 turbo. The 300h also swaps out an eight-speed torque converter automatic in favour of a continuously variable transmission. Rare in a rear-wheel drive car.

All of this hybrid gear leads to impressive consumption figures. Officially the E 300 e will consume just 2.2L/100km on the combined driving cycle, with around 13.0kWh/100km of energy consumption worked in as part of that calculation.

However, the hybrid Benz requires 98 RON premium fuel, has a smaller tank (60L) than its all-combustion counterparts, and its claimed 51km of NEDC range is more in the late thirties or early forties in the real-world in my experience.

That said, our car consumed a blend of 5.6L/100km and 8.3kWh/100km in my time with it, which is a nice balance of fuel and energy consumption.

I drove it with a lot of electric mode in the mix, but also had a day solely on the engine, and some experimenting with 'Sport' mode and 'Battery Saver' which is designed to maintain the battery level whilst using hybrid mode where it can.

The E300 e accepts a European-standard Type 2 ‘Mennekes’ charging cable in AC form only. It can charge at a theoretical max speed of 7.4kW, although the max I extracted from my local solar-charged AC outlet was 7.2kW.

It took around an hour and a half to get my E 300 e to about two-thirds charge. It would have charged to 100 per cent in around two hours using this method.

Expect somewhere between four and five hours for it to charge to 80 per cent from a 2.4kW wall socket with the included charger.

The system as a whole works well, but I wish it had more purely electric range. A battery closer to 20kWh would offer 60 or 70km of real-world range for a car of this weight, but would eat significantly more boot capacity.

As you might hope this hybrid IS has an astoundingly low official/combined fuel consumption rating of 5.1L/100km.

I was pleased to find that after a week of mainly urban driving conditions, our IS was returning a figure of 6.9L/100km. Not bad at all, especially for a class where fuel consumption can get a little out of hand with turbocharged engines or V6s.

Of course, using the hybrid system to your advantage over the long term will get this number much lower, as I discovered on my long-term test of the Toyota Corolla hybrid which essentially uses a smaller version of the same system.

Certainly, if fuel consumption is a high concern, you’re better off with this car than the top-spec V6 (IS 350) which will easily see consumption enter double digits.

Lexus recommends a minimum RON rating of 95 for the IS 300h, and the fuel tank is 66 litres regardless of variant, giving the hybrid an impressive theoretical range of around 1000km.

For all the electrification and evolution in Mercedes-Benz’ greater range, it's almost like coming home to sit in the E-Class.

Not only does the E 300 e stay true to the brand's luxury sedan roots with the comfort and refinement on offer, but it's perhaps the one variant in the E-Class range that makes a significant stride toward the future of the nameplate.

I'm sure we'll see a fully electric version of the E-Class in the near future (the brand is shifting to electric-only with an aggressive timeline), but for now, at this price, hybrid is the way forward for luxury sedan refinement.

The way this car blends its electric and combustion modes is notably smooth, and the engine is so distant it's genuinely hard to tell when it turns on, unlike this car's smaller A 250 e PHEV hatch sibling which takes a major drop in refinement when the rattly 1.3-litre four-cylinder engine needs to be relied upon.

This is likely due to the higher-end nature of the 2.0-litre engine and nine speed longitudinally mounted transmission in a much larger and heavier car. One thing I've never liked about the Mercedes PHEVs (and is a common problem among many PHEVs) is the ‘hybrid’ mode could be a bit smoother and more transparent on how it divides its time between electric and with the engine on. At times it runs the engine at the lights for no reason, and it seems unusually keen to turn it on when it could be using electric power. Perhaps we are spoiled by the simplicity and twenty years of refinement of Toyota's Hybrid Synergy drive, but it has the affect of making you wish every hybrid was as good.

The default ‘Comfort’ mode, while the most forgiving in terms of this car's ride, is weighted toward entirely draining the battery before it uses combustion power. The extra drive modes and customisation this PHEV offers are very useful though. Battery Saver mode lets you rely predominantly on combustion power. It's better to use on the freeway where combustion power is at its most efficient, allowing you to switch back to Comfort or Electric when you're stuck in traffic.

Sport hunkers the E-Class down for a sportier and firmer experience, and it also tweaks the accelerator response and auto transmission for a far more aggressive driving tune. As this mode won't use the electric motor at all, even at low speeds, it can be handy to use it to charge the battery via regenerative braking for times when you might not have access to a charger.

In fully electric mode, the regen braking can be tweaked to the max using the paddle shifters to increase your electric efficiency and range.

Like the smaller A 250 e, it's a highly customisable experience, letting you experience as much or as little electrification as you want in the moment, although in this case it's let down a little by the limited battery capacity.

Still, the E 300 e is an E-Class, quieter and sleeker than before. The ride is as stately as the interior suggests, and even on those 19-inch wheels little noise or discomfort makes its way into the plush cabin. The transmission is as close to an old ‘slush-o-matic’ you can get, and I mean that in a good way. Unless you're in one of the Sport modes, it will never interfere with the experience from behind the wheel.

Once you do awaken it in Sport or Sport + though, it shifts, even via paddles, with a surprising urgency, and it's in those modes where the air suspension transforms the cosy barge-like ride from Comfort or Electric into something far more rigid and responsive.

The dynamic breadth of ability in this car is a reminder of what premium money like this can buy. On the one hand you have the luxury of an economical comfort saloon, and on the other you have at least an inkling of semi-electrified performance at the flick of a switch.

Just remember to plug it in when you get home, or you're lugging around a lot of battery for no good reason.

There is no doubt the IS 300h is capable. You can feel it through the car’s solid rear-drive underpinnings, silky smooth steering, and reactive chassis.

What this car doesn’t offer is excitement in quite the same sense as many of its rivals. That’s down to this hybrid’s drivetrain. It just doesn’t have that powerful follow-through in the same way turbocharged BMWs or Audis or Mercedes do.

If it’s that 'sports luxury' experience you’re seeking better off looking to the base 2.0-litre turbo or the V6 and their eight-speed automatics.

The 300h does offer something a bit different. The gentle refined efficiency of Toyota’s signature hybrid system in a luxury rear-drive package that’s smaller than this car’s ES bigger brother.

While it may feel capable thanks to the lighter suspension components and altered track that the brand has committed to for this update, the hybrid drive matches this car’s softer character brought about by its gentle suspension tune and light steering.

This is an easy car to drive around a city, it filters out bumps nicely, while offering near silence in the cabin and breezy steering for every day scenarios like manoeuvring in tight parking lots.

The CVT auto and instantaneous torque available from the electric motor make it best at traffic speeds, being both reactive and predictable, with silent acceleration when inching forward at the lights or cruising along at 50km/h.

As you might expect though, the wheezy Atkinson cycle engine and CVT conspire for a noisy and less than engaging experience under heavy acceleration.

It’s not as though you’re rewarded with particular vigour either, with this combination being a bit sluggish when a lot is asked of it.

It loses its reactivity and refinement at higher speeds or in the corners on country roads as the transmission elastically tries to keep up with the demands of the driver.

Still, few luxury sedans are quite as purpose-built for the toils of a city, and if you want to get drawn into this car’s hybrid drive antics, it’s easy to make a game out of saving fuel by trying to rely on its low-speed electric motor capability.

Really then, it leans into its urban luxury appeal. A luxury sedan for the streets of Tokyo. An ideal car in this class for the urban environment.

If you don’t care for the thrill of a turbocharger or frequently seek to explore the twists of your nearest B-road, you could do worse than the comfort and ambiance the 300h offers.

A full active safety suite is now standard across the IS range, including freeway-speed auto emergency braking with pedestrian detection (works during the day and at night) and cyclist detection (works during the day only), and a new intersection braking feature, lane keep assist with lane departure warning, blind spot monitoring, rear cross traffic alert with reverse auto braking, traffic sign recognition, adaptive cruise control, and auto high-beam assist.

There is also an auto SOS function, as recently added to the Toyota Yaris Cross, which automatically triggers if an airbag is deployed. On the topic of airbags, every IS has a thorough suite of 10 (dual front, dual side, quad head, dual front knee).

This all adds up with the standard array of stability, brake, and traction controls for a maximum five-star ANCAP safety rating, although the IS was last assessed way back in 2016.

The IS is built in Japan.

Mercedes covers all its passenger cars with a five year and unlimited kilometre warranty, beating out its primary Audi and BMW rivals which persist with three-year offerings, and generally out-performing the premium segment.

The E-Class needs to be looked at once every 12 months or 25,000km, whichever occurs first, and like many German automakers, service packages can be bundled in at the time of purchase to bring overall costs down.

In the case of the E-Class, this will set you back $2450 for three years, $3200 for four years, or $4800 for five years, at a claimed minimum saving (three years) of $550 compared to paying-as-you go.

It's not as expensive or as unknown as it used to be here, but at close to $1000 per year, even when purchasing via the pre-paid packs, it's still very much at the premium end.

Lexus gets slightly ahead of the luxury pack with an extra year of warranty. While BMW and Audi still sit on three, Lexus offers four, but it is limited to 100,000km and is still outdone by Mercedes-Benz and Korean newcomer, Genesis, offering five-year/unlimited kilometre promises.

The IS has capped price servicing fixed at $495 for the first three years of ownership with roadside assist, and the brand will even pick up and drop off your car, or offer a free loan car during every 12 month or 15,000km service.

It’s worth noting that German rivals offer pre-paid service packages out to five years, and Genesis is trying to make a splash with free servicing.

Lexus does offer a luxury ownership program dubbed ‘Encore’ which includes invites to experiences and certain partnerships with restaurants and the like to keep potential owners enticed.