Mercedes-Benz E-Class vs Peugeot 308

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 308 GT Sport plug-in hybrid is a beautifully designed small hatch that is comfortable, enjoyable and easy to drive. The electric motor gives this hatch good acceleration and the equally impressive handling makes for a fun car to drive too. There's good storage, a decent boot and room for even tall people like me in those back seats.

There are two clear drawbacks, however: the price is steep compared to the petrol version; and you'll need to plug the vehicle into a power supply each night if you drive the car daily and want to achieve the 2.4L/100km fuel economy we did in this test.

Last, but probably the most important thing you'll read is that Peugeot will bring fully electric cars to Australia from the second half of 2023, from SUVs to (hopefully) the battery electric version of this very 308 hatch.

If it was my money, I'd hold on - you're going to have your next car for quite a long time so it's worth waiting for the fully electric versions.

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

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. 

There hasn't been a Peugeot in the last five years that wasn't stunning. There's the high quality feel in their build, and premium yet unique look - like a new Volvo but with more flair. And the 308 hatch and this hybrid version has all of that.

From the sinister looking LED tail-lights to the wide mesh grille, you really get the feeling that Peugeot is hitting its design stride.

This 308 GT Sport plug-in hybrid looks identical to the petrol version with its low, wide stance, and big dark alloy wheels that fill up its arches.

The cabin is sporty, lavish and minimalist with quilted leather upholstery seats, the digital driver display and media screen, and avant garde small angular steering wheel.

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.

Peugeot's 308 is a small hatch, think Toyota Corolla, only beautiful and more spacious.

So, the 308 can carry five people with just enough head and legroom for a semi-giant like me (I'm 191cm) to sit behind his driving position.

There's good cabin storage with large door pockets, a long and deep storage box under the centre armrest up front along with two cupholders up there, too.

The boot has a cargo capacity of 361 litres, which isn't bad for this class.

To power devices there's a wireless phone charger under the dash, and USB ports for front and rear passengers.

A quirky Peugeot design feature is the low-placed angular steering wheel. I found had to squeeze my knees past to sit in the driver's seat. I'm not sure what size human was used as the test case for this but it wasn't somebody with stilts like mine, I can tell you that.

The 308 GT Sport plug-in hybrid lists for $64,990 before on-road costs. The ‘GT Sport' part of the name is the grade and the hybrid only comes in this grade. In comparison the priciest petrol 308 hatch is the GT Premium for $48,990. The 308 GT Premium also comes in wagon form and that's $50,490. Alas the wagon doesn't come as a hybrid.

Is it good value? Nope. A charge of $16,000 over the cost of the GT Premium petrol version with almost identical standard features is pretty unreasonable. It's also not good value when you could buy a fully electric car about the same size such as a new Tesla Model 3 for $64,300, or a Polestar 2 for even less at $63,900.

However if your heart is set on a PHEV, the main competitor is another Euro hatch - the Cupra Leon VZe from $59,990.

The 308 GT Sport plug-in hybrid standard features include LED matrix headlights, 18-inch alloy wheels and a panoramic sunroof, while inside there are two 10-inch displays - one for the media system and one for the driver's gauges.

It also has black full-grain Nappa leather seats (heated and massaging for the driver and front passenger), a 10-speaker Focal stereo system, proximity unlocking, dual-zone climate control, sat nav, wireless phone charging, plus Apple CarPlay and Android Auto.

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 308 GT Sport plug-in hybrid has a 1.6-litre turbo-petrol engine making 132kW and 250Nm combined with an electric motor at the front wheels making 81kW and 320Nm.

The combined output of the engine and motor working together is 165kW and 360Nm, and sending that grunt to the front wheels only is an eight-speed automatic transmission.

Acceleration is good. We're talking 0-100km/h in 7.4 seconds which is more than two seconds quicker than the petrol-only variant.

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.

This is what it's all about right? Well, Peugeot says that after a combination of open and urban roads the 308 GT Sport plug-in hybrid will use 1.3L/100km.

At the launch I did a 34km test loop through Sydney's Northern Beaches with a good mix of morning traffic and hilly terrain. At the end of my journey the trip computer reported an average fuel consumption of 2.4L/100km.

I drove the entire loop in Hybrid mode, but there is a Sport mode, a Battery Save mode and EV mode.

If you were to drive in EV mode Peugeot says the electric driving range with a full battery is 60km.

At the start of my drive the battery was about three-quarters charged with the gauges displaying 38km of range.

A mileage of 2.4L/100km is still excellent fuel economy and from experience I can tell you a petrol-only variant would be up around the 8.0 or 9.0L/100km mark for the same trip.

There is a catch, and that is you'll need to plug in your hybrid 308 daily to charge the battery if you plan to achieve the fuel economy I did.

Charging will be slow, however, because Peugeot has fitted this hybrid with a small 3.7kW on-board charger. So, even using a fast charger you'll be looking at more than four hours to fully charge the 12.4kWh lithium-ion battery.

This charging time and small electric driving range in return could be a deal breaker for some and it's the reason why I've given the 308 GT Sport plug-in hybrid a lower mark. If you aren't always charging this car your fuel usage will rocket. New buyers unaware of this could end up using more petrol than ever.

A fully electric vehicle may be a better solution for city dwellers.

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.

Once you've become accustomed to the strange, low steering wheel with its angular design the 308 GT Sport plug-in hybrid is superb to drive. The suspension is composed and comfortable, the handling is excellent, the steering is light and with the combination of both the electric motor and petrol engine, acceleration is good.

For those of you who haven't driven a plug-in hybrid before I think you'll like the quiet electric power at low speeds and the feeling of ‘instant' acceleration the electric motor adds, but compared to driving a regular petrol car the experience is much the same, just less noisy and smoother.

The petrol variant of the Peugeot 308 achieved low scores when it came to protecting its front passengers in ANCAP's frontal off-set crash test and it was for mainly this reason that the vehicle scored four out of  the maximum five stars in its ANCAP and equivalent European safety rating.

That said, Peugeot Australia has added more safety technology to the 308 than the European version of this car, such as a more comprehensive autonomous emergency braking (AEB) system as standard.

Along with AEB that can also detect cyclists and pedestrians, other standard safety tech includes lane keeping assistance, blind spot warning and rear cross traffic alert.

For child seats there are three top tether anchor mounts across the second row and two ISOFIX points on the outside rear seats.

There are front and side airbags for the driver and co-pilot, while curtain airbags cover the first and second rows.

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.

The 308 GT Sport plug-in hybrid is covered by Peugeot's five-year/unlimited-kilometre warranty.

Peugeot will cover the hybrid battery with an eight-year/160,000km warranty.

Servicing is recommended at 15,000km or 12 month intervals and it can be expensive. Peugeot says the first service will be $425, then second is $771, the next is $425, then at 60,000km the costs will be $900, then $439 for the following.