Mercedes-Benz E220 vs MG Mg7

What's the difference?

Given Mercedes-Benz's rich heritage with station wagons, it is a bit of a shame Australia’s preference for SUVs has reduced the line-up to just one variant this time around.

I'm glad they've picked the All-Terrain to fly the flag though, and Merc wagon loyalists should appreciate the extra versatility of its dirt road ability - if they're not mourning the loss of the extra two seats in the rear. Like the rest of the current E-Class range, the E 220 d All-Terrain is an excellent product overall.

In a world obsessed with SUVs and electric powertrains, a mid-size petrol sedan almost feels rebellious. But the MG7 kind of is. A sleek fastback with a turbocharged engine, a sporty edge and a price that makes you look twice - it’s a compelling combination. There are some drawbacks for families in efficiency and back-seat practicality but it's not a bad offering for those wanting something a bit more fun than an SUV.

The All-Terrain styling pack is comprised of tough-looking front and rear bumpers, with unpainted plastic side skirts and wheelarch flares on all corners. This will all be welcomed by anyone who travels regularly on dirt roads, but the All-Terrain bits will also provide a handy disguise from urban parking scrapes.

The double-blade grille, wheels and roof rails are also bespoke to the All-Terrain, and the net result is a distinct personality that should satisfy the majority of previous E-Class Estate buyers previously opting for the AMG styling pack.

Interior trim is based on the regular E-Class Avantgarde package, but with specific rubber studded pedals and All-Terrain branded floor mats to align with the exterior treatment.

In the default suspension setting, the All-Terrain sits 29mm higher than a regular E-Class. Taller tyres make up 14mm of this, while the remaining 15mm is thanks to an elevated 'Air Body Control' air suspension. A further 20mm of lift is available with the All-Terrain drive mode selected, but only at speeds up to 35km/h.
 
The All-Terrain’s 20-inch alloys are a staggered fitment with 245/40 tyres up front and 275/35 at the rear, while taller-sidewalled 245/45R19 at each corner are a no-cost option, and essential if you wish to use snow chains.

Like the Estate available internationally, the All-Terrain rides on the same 2939mm wheelbase as the E-Class sedan but gains an extra 24mm in rear overhang to measure 4947mm overall.

The wagon body, extra kit and all-wheel drivetrain also add an extra 240kg to the kerb weight over the E 220 d sedan, with the All-Terrain tipping the scales at 1920kg.

The MG7 is genuinely good looking. The fastback roofline gives it a sleek silhouette, and there’s a confidence to the way it carries itself.

The blacked-out badging, quad exhaust outlets, 19-inch Michelin tyres and red brake calipers all lean into that sporty brief. It looks fast standing still. The frameless doors are a nice touch, and the retractable rear spoiler adds a bit of theatre and fun.

Inside, the cabin follows through on that upmarket intent. Deep burgundy leather and synthetic suede are used generously throughout, giving it a sumptuous feel. Although, my husband joked that he wouldn't be able to drive it during State of Origin... sorry, Queenslanders!

There’s less reliance on piano black trim, which I appreciate as it scuffs easily, and most surfaces look well-finished. The integrated headrests up front give the illusion of proper sports seats but I do wonder if the interior would pop half as well if it was finished in the optional black.

The dashboard is dominated by a wide digital display incorporating a 10.25-inch instrument cluster and a 12.3-inch media screen. The panoramic sunroof helps keep things light and airy, and while there aren’t many physical buttons or dials, which is usually a gripe of mine, the overall execution feels cohesive and premium for the price point.

Aside from the All-Terrain’s rugged looks, the greatest departure from E-Class Estate tradition is the omission of the third row of seats, which makes this one a strict five-seater.

One could argue that the Estate’s traditional rearward-facing third row is a bit old school next to the forward-facing setup used by seven-seat SUVs like the GLS, but it's a shame given the third row is still available in other markets.

The All-Terrain does offer a vast cargo area however, with an extra 130 litres (VDA) over the sedan with the seats up to total 670 litres (VDA). Seats down, this extends to 1820 litres (VDA), but it’s worth noting that both wagon figures are marginally smaller than the previous Estate’s 695/1950 measurements.

Facilitating full use of this space is the classic Merc Estate retractable cargo net, and a 670kg payload promises good scope for loading beyond a full passenger count. The air suspension will also automatically maintain a level ride height regardless of load.

As with all current E-Classes, there are bottle holders in each door plus two cupholders front and back and ISOFIX child seat mounts in the outward rear positions.

As per the non-AMG Mercedes passenger car norm, run flat tyres take the place of a spare tyre, but a space saver can be optioned to sit above the boot floor.

Up front is where the MG7 feels most generous. The electrically adjustable front seats are comfortable and supportive for daily driving, although extendable under-thigh support would help reduce fatigue on longer trips. You do get heating for both the seats and the steering wheel but having to dive into the media menu to activate them is annoying.

In the second row, legroom is respectable for a mid-size sedan. Headroom, however, is tighter thanks to the fastback roofline and panoramic sunroof. Tall teenagers won't feel like they can sprawl out but younger kids will be fine. The second row features two ISOFIX child seat mounts and three top-tether anchor points but two child seats will fit best. Bending down to buckle in a child will remind your back why SUVs became all the rage, but it's certainly doable.

The seats in the second row are thickly padded and comfortable, and the fold-down armrest sits at a good height to lean on. Amenities aren’t especially extensive given there’s only one grade available, but you do get a couple of cupholders, map pockets, directional air vents and two USB-C ports.

Storage in the front row is about what you’d expect for a car of this size. There’s a decent glove box, a shallow middle console, large door bins and some handy little nooks near your knee. A sunglasses holder and a dedicated phone cradle with wireless charging round things out nicely. The wireless charger can lag a little in topping up your battery, and it's quick to overheat your phone - added ventilation would be a big help here. However, there’s also a 12-volt socket and two USB-C ports if you prefer a cable.

The media system itself is responsive and largely intuitive, although the touchpad-style controls on the dash feel slightly back-to-front in use. On the plus side, it’s very easy to flick into Sport mode and open up the exhaust using the cluster controls, which adds a bit of fun to the daily drive.

The boot offers 375 litres of capacity, which is on the smaller side for the segment. Comparatively, the Sonata N Line offers 480L, the Skoda Sportline 600L and the Camry 524L. That said, it’s been perfectly usable for grocery runs and the odd road trip this week. You do need to load bulkier items further back toward the seats to work around the sloping fastback design. A powered tailgate adds convenience, and there’s a temporary spare tyre underneath, which I always prefer to a repair kit.

For now, the MG7 is offered in a single grade, the Essence, priced from $44,990 before on-road costs.

That positions it just above the Skoda Octavia Sportline, which starts from $44,490 MSRP, although the Skoda doesn’t match the MG7 feature for feature. In terms of features and styling, it’s closer to the Hyundai Sonata N Line, which opens at $56,500 MSRP. And then there’s the segment darling, the Toyota Camry SL, from $53,990 MSRP, happily flexing its hybrid efficiency credentials.

On price alone, the MG7 looks competitive. On specification, it starts to look like a bit of a statement. You get leather and synthetic suede upholstery, heated and electrically adjustable front seats, memory function for the driver’s seat, a heated steering wheel, a panoramic sunroof and 19-inch Michelin tyres.

Technology feels well thought out and a large centre display houses a 12.3-inch media system, paired with a 10.25-inch digital instrument cluster that appears larger than it is thanks to the integrated touch controls. There’s wired and wireless Apple CarPlay and Android Auto, built-in satellite navigation, 256-colour ambient lighting and a 14-speaker Bose sound system.

Practicality hasn’t been overlooked either. A powered tailgate, temporary space saver spare wheel, dual-zone climate control, acoustic door glass, rain-sensing wipers and a 360-degree camera system round out the package.

The All-Terrain’s excellent 2.0-litre turbo-diesel engine and nine-speed torque converter auto are carried across from the E 220 d sedan, which produces a decent 143kW/400Nm. Max torque is available from 1600-2800rpm.

The All-Terrain is the only Australian E-Class to pair this engine with the '4Matic' all-wheel drivetrain though, which uses a slightly rear-biased (45/55) torque split in this application.

The MG7 has a 2.0L, four-cylinder turbo-petrol engine producing up to 170kW of power and 380Nm of torque. That’s pretty gusty compared to its nearest rivals, although the Sonata N Line still beats it with its 213kW/422Nm outputs. The Hyundai is more of a dedicated sports model. Still, with these outputs the MG7 manages a 0 -100km/h sprint in a swift 6.5-seconds!

Power is delivered to the front wheels and the nine-speed auto transmission punches through its gears relatively smoothly. You can also flip it into Sport mode, where gear changes become more pronounced.

Overall, the whole setup creates an engaging on-road experience without lulling you into any false pretences. The MG7 is not a racer, even though it looks like one, but it holds its own.

The All-Terrain’s extra 240kg and no doubt less slippery body add 1.6L/100km to the E 220 d sedan official combined fuel consumption figure, but the wagon’s 5.7L/100km claim is still very impressive for a taller body nudging two tonnes. 

At this rate, the E-Class All-Terrain has a theoretical range of 1157km from its 66-litre fuel tank.

The MG7 has a claimed combined fuel consumption figure of 8.0L/100km. With its 65-litre fuel tank, that equates to a theoretical driving range of up to 812km.

That places it broadly in line with the Hyundai Sonata N Line, which claims 8.1L/100km, although the Hyundai delivers stronger engine outputs. The Skoda Octavia Sportline is notably more frugal at 6.1L/100km, while the Toyota Camry SL continues to dominate the efficiency conversation with its 4.0L/100km hybrid figure.

In real-world driving, expect that 8.0L/100km claim to creep up. Even after a week consisting mostly of longer highway stretches, my trip computer was sitting at 8.6L/100km. That’s not wildly unexpected for a turbo-petrol engine, and it’s hardly alarming, but efficiency is a major consideration for families. Against hybrid rivals, it doesn’t win that particular argument.

Combined CO2 (ADR 81/02) emissions sit at 183g/km, which is comparative to the Hyundai Sonata N Line but not as low as its other rivals.

MG recommends a minimum 95 RON unleaded petrol to be used.

Climbing aboard the All-Terrain, there’s a sense you're seated higher than its 29mm static ride height lift suggests. It's probably mostly psychological, and borne from the All-Terrain styling treatment, but something SUV fans will probably appreciate.

Otherwise it's mainly W213-generation E-Class from the driver's seat, which is a very good thing.

However, the extra 240kg of Estate body and All-Terrain spec over a regular E 220 d sedan is just enough to put a dent in the 2.0-litre diesel's performance. Mercedes claims an 8.0sec 0-100km/h figure, which is still more than enough to keep up with traffic, but just not as spritely as the sedan’s 7.3sec figure.

The combination of airbag suspension and the All-Terrain’s slightly taller tyre sidewalls help the wagon ride commendably well. There's no disguising the large-diameter 20-inch wheels over sharp potholes, but the experience is generally even better than we recall from any other existing E-Class.

The steering also feels slightly heavier, as though the level of assistance has been tuned for a touch more weight to add to the All-Terrain’s semi-SUV aura. If our perception is correct, it only adds to the sense of substance from the driver’s seat.

Its overall composure is maintained on dirt too, with the All-Terrain’s Victorian launch route offering a good dose of gravel and muddy unsealed roads. The all-wheel drive system keeps you pointing where you want and enables clean acceleration from the greasiest of corners. All of this highlights the All-Terrain’s potential as a ski field chaser.

We also detoured via some moderate fire trails, which gave us the chance to try the All-Terrain driving mode that lifts the suspension an extra 20mm and slackens the stability control and ABS to better suit low grip scenarios.

At speeds above 35km/h it reverts to Comfort mode, but will return to All-Terrain settings if you slow down again. In Sport mode or above 125km/h, the suspension lowers 15mm below normal to reduce aerodynamic drag. Even at full height it won’t challenge a GLE for clearance, but it’s significantly more capable than regular E-Class models.

Power delivery in the MG7 is smooth and responsive, and it doesn’t take long to feel confident with the turbo-petrol engine. For a bit of extra fun, flick it into Sport mode and open the exhaust; gear changes become more pronounced, and the engine note gets noticeably throatier. It’s not a performance sedan, but it’s definitely engaging on the road.

Handling is another highlight. The steering is responsive and firms up depending on your selected drive mode, and the low-slung stance helps the car feel surprisingly nimble in corners. That said, it’s not always surefooted when accelerating out of tight bends, which reminds you that the MG7 is sporty but not track-focused.

Visibility is adequate but not perfect. The thicker pillars, lower roofline, and relatively small windows do make the cabin feel a touch enclosed, and there’s some road noise, which is enough to remind you it’s not a luxury saloon, but it never becomes intrusive.

The MG7 feels agile in tighter spaces, and the 360-degree camera system is high-quality. Parking is straightforward, which frazzled parents will appreciate.

The MG7 has a maximum five-star ANCAP safety rating from testing done in 2025 and scored well across its individual criteria with 88 per cent for its adult protection, 85 per cent for child protection, 80 per cent for vulnerable road user and 81 per cent for its safety assist.

Passive safety items include seven airbags including a front centre airbag and curtain airbags covering both rows. Families will like that there are two ISOFIX child seat mounts and three top-tether anchor points but realistically, two child seats will fit best. There are also powered locks for the rear windows and intelligent seatbelt reminders for all five seats. Parking is easy with the rear parking sensors and 360-degree view camera system.

Active safety includes forward and rear collision warning, lane keeping aids, lane departure warning and prevention, blind-spot detection, side exit assist and a relatively unobtrusive driver monitoring system.

Other highlights include emergency lane keeping, which will activate when there’s no response from the driver and the rear cross-traffic alert also gets assisted braking. The adaptive cruise control is fairly well-calibrated and it’s a bonus having the emergency call functionality, although it seems to connect to an MG service line, rather than directly with emergency services. And you have to select which country you’re in before it activates, which might not be a delay you want when you really need it!

There’s autonomous emergency braking with car, pedestrian and motorcyclist detection and it's operational from 4.0 – 85km/h and up to 150km/h for car detection but it is more typical to see that top figure closer to 180km/h.

The E220 d All-Terrain is covered by Mercedes’ three-year, unlimited kilometre warranty, with service intervals pegged at either 12 months or a generous 25,000km.

Mercedes is yet to confirm capped service pricing for Australia, but we don’t expect the All-Terrain to stray too far from the $556, $1112 and $1112 figures applied to the E220 d sedan’s first three services.

MG backs the MG7 with a seven-year, unlimited-kilometre warranty. If you service exclusively through MG service centres, that coverage can be extended to 10 years or up to 250,000km, which makes it one of the more generous warranty offerings currently available.

At the time of this review, servicing intervals and service prices haven't been set for the MG7. It's fairly easy to secure servicing for an MG, as they have around 90 service centres nationwide at the moment.