What's the difference?
It might not be as tribal as Ford vs Holden, but there’s a rivalry between BMW and Mercedes-Benz that occasionally becomes more obvious - the launch of the new Mercedes E-Class only months after the BMW 5 Series being one of those times.
But Mercedes has done something different. Instead of multiple variants and electric cars under the E-Class banner, Australia gets just one, the E300.
Is it enough to tackle the big Bavarian sedan in the sales race? We attended the Australian launch just north of Melbourne to find out.
This is the most affordable plug-in hybrid available in Australia – as this review is published – but it’s got a lot more going for it than just that.
The 2026 BYD Sealion 5 is a mid-size SUV wearing a BYD badge that has been thrust into the public’s awareness by the popular BYD Shark 6 – as well as by widespread criticism of brand's less popular aftersales shortcomings through much of 2025.
It’s also a plug-in hybrid that is showing up as the nation faces a fuel crisis, despite many remaining sceptical of going ‘full EV’.
The Sealion 5 has a long list of features, of course, plus a claimed four-figure driving range. Is this BYD too good to be true?
We grabbed the entry-level Essential to find out.
The E-Class is stacked with kit, looks great, and is an effective and comfortable way to get around in built-up areas or across the countryside.
While it’s not the most dynamically engaging - it’s pipped by its Bavarian rival there - it offers more comfort-oriented features than most, and the cabin is a pleasant place to spend a day driving.
If you're disposed towards stumping up the asking price, the extra outlay for the 'Plus Package' will probably be most relevant to you if you’re covering long distances due to the Airmatic suspension.
Otherwise, even a simple-spec E300 provides a step up from what you might expect from an executive sedan.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
While the BYD Sealion 5 lacks the polish of some more established plug-in hybrids, it has a seriously compelling price advantage over some competitors. It makes a base-model Mitsubishi Eclipse Cross PHEV feel positively outdated and it’s $13,800 cheaper.
BYD's lack of ANCAP rating for the Sealion 5 and the uncertainty around it still being a new brand are downsides, even if BYD is quickly moving past the latter. But being the most affordable PHEV available while having this much showroom appeal is bound to work in the Sealion 5’s favour, just don’t expect a dynamic masterpiece once you’re out on the road.
Evolution rather than revolution is obvious when it comes to the E-Class’ styling, but that’s in Mercedes’ best interests, because it’s still a good-looking thing, and being a bit subtle is warranted in the executive sedan game.
The biggest changes come in the headlights and tail-lights. Up-front there are now more than one million pixels in the LED headlights, which have adaptive high beam as standard and are more connected to the grille via black trim, as has been seen in EQ electric models.
Underneath, the bumper now features an AMG-style 'A-wing' apron as part of the 'AMG Line' exterior package as standard. A set of 20-inch AMG alloys are also included.
To the rear, and the digital tail-lights feature a Mercedes-Benz star motif, making its lighting signature now more recognisable from behind.
The German Rainbow is well-represented with mostly shades of grey, black, or white available, though 'Verde Silver Metallic' is a slightly retro green, and 'Nautic Blue Metallic' is a subtle and classy tone.
The daring ‘Manufaktur’ shade of 'Patagonia Red Metallic' is a $2500 option, as is 'Opalite White Bright' while 'Alpine Grey Solid' is $2900.
The BYD Sealion 5, from the outside, is inoffensive but also uninspiring. That’s likely not such a bad thing for a mid-size SUV – it’s rare you’re hearing someone talk about how beautiful the Mazda CX-5 or Toyota RAV4 is.
Its quartet of colour palette options comes in on the safe side, too. Aurora White is standard, Atlantis Grey, Harbour Grey and Cosmos Black are cost-options.
Our test car is Atlantis Grey, which is interestingly quite blue.
The relatively upright shape is a slight departure from the more ‘aquatic’ silhouettes of BYD’s line-up, but the front grille and light layout are decidedly in step with the brand’s oceanic design language. There’s a bit going on, you could say.
The slimline tail-lights are the rear, especially from a three-quarter angle to the side, look attractive and help break up the rear without looking messy.
The Sealion 5’s design is overall net-good, but it’s inside where the mid-sizer feels like you’re getting plenty for your dollar.
The seats, despite the leather fakery, feel like decent material, and the layout uses buttons and physical controls cleverly without feeling outdated.
Inside, the E-Class should feel familiar to anyone who’s spent time in a recent Benz, though the Superscreen might be the main point of difference. It’s an immediately comfortable place, though, with a relatively visually busy cabin.
The seats and their adjustability mean most drivers and passengers, regardless of height and size, should feel supported (and ideally relaxed), while touch-points are mostly either leather upholstery or digital screens.
The steering wheel, also seen in plenty of other Mercedes models, is a bit of a let-down, however, with its haptic touch pads on a slightly busy two-tier layout. This millennial found it irritating, surely too will the usually older E-Class buyer.
There are a few other small annoyances, one being that the MBUX Assistant sometimes won’t hear a command, or that not everything seems to be able to be controlled by it. The climate control vent positions are electrically adjustable to certain pre-sets through the menu, but the MBUX Assistant isn’t able to do this for you.
And while the driver display and central multimedia screen are fairly user-friendly, it’s not always immediately apparent what the quickest way to find some information or a setting is.
Our test car was fitted with the 'Plus Package', which means four-zone climate control available to the rear seats, which my 180cm-tall self found spacious with plenty of headroom, kneeroom, and even a fair bit of room under the driver’s seat.
Behind the rear seats, there’s a generous 540 litres of boot space, exactly the same capacity as the previous generation E-Class.
To actually interact with the interior is, at times, another story. BYD’s tech interface is generally easy to manage, but could be simpler when it comes to navigating menus for the sake of driver distraction.
While larger text and buttons would be welcome, the multimedia system is easy to use when parked, and the functionality is impressive for the price point.
Winning more points for the Sealion 5, though, are the physical controls – buttons and the traditional gear selector – which make the cockpit much more intuitive while on the move.
Ergonomically, though, the adjustment between the steering wheel and driver’s seat could do with some work, as I found it difficult to find a truly comfortable driving position. This is coming from someone 178cm tall, a very normal height in Australia.
Better adjustability on the steering column would be helpful, as it’s something I’m not sure I’d ever get totally used to.
Visibility and physical space inside the Sealion 5 is impressive, though. The car is 4738mm long, 1869mm wide and 1710mm tall, and the roof and window lines don’t swoop too aggressively towards the rear.
There are low window shoulders even into the rear, so light isn’t at a premium, though under-leg support could be better on the pew.
It’s otherwise un-cramped. The 2712mm wheelbase means decent legroom for second-row folk, plus behind the 60/40 split-fold seats there’s 463 litres of space for luggage. That becomes 1410L with the seats folded.
There’s unfortunately no spare tyre, just a tyre repair kit.
While cross-shopping the E-Class and a BMW 5 Series would normally be relatively easy, the Merc’s $131,500 starting price, before on-road costs, puts it plenty north of the base 520i, the only petrol one available, at $114,900. The electric i5 eDrive40 starts from $155,900, more than $20K over the Mercedes.
But the E-Class is stacked with features as standard, and while there are a couple of option packs, Mercedes Australia has tried to streamline the most popular features and specifications into the E300.
Its $131,500 price gets you a tech-heavy sedan with Merc’s latest 'MBUX' system housed in a visually impressive, if perhaps unnecessary, 'Superscreen' dash.
The dual-screen set-up incorporates a main 14.4-inch central multimedia touchscreen and a 12.3-inch display for the passenger, allowing the driver to keep, for example, a map visible while a passenger sorts out media or comfort settings.
The system is also designed to avoid taking users through sub-menus, though can be bypassed by wireless Android Auto or Apple CarPlay.
It also features a selfie camera mounted to the dash, which is disabled for the Australian market at present. Mercedes-Benz Australia hopes to change this soon.
Mercedes also plans to allow the MBUX system to learn what settings and functions will be most useful to the driver under certain conditions, but currently users are able to manually create so-called ‘Routines’ such as setting the climate control and seats to warm up if it’s below a certain temperature, and can even adjust the ambient lighting to a warmer colour.
More automation comes in the brand’s MBUX ‘Hey Mercedes’ system, which can now respond to commands without the driver needing to say “Hey Mercedes”.
Heated and vented front seats, leather upholstery, wireless phone charging, and a 17-speaker Burmester sound system with Dolby Atmos 4D sound are also standard - the latter being a clever feature that positions different elements of the audio, usually music, to give a 360-degree feeling, as well as turning bassier tones into a physical vibration via “tactile transducers” in each front seat’s backrest. Good for bassline junkies, then (apologies to Mr. Rascal).
With the $9400 'Plus Package', the E-Class also comes with 'Airmatic' suspension and rear-axle steering (which I’ll touch more on later), power-closing doors, 'Urban Guard' to monitor your vehicle while it’s parked, an illuminated grille up front, a more capable version of the MBUX 'Interior Assistant', four-zone climate control and Mercedes’ 'Digital Light' function, which uses the more-than one-million pixels in the headlights to project onto the road or surface in front of you when turning the car off or in driving situations to alert road users of potential danger.
A $6200 'Energising Package' adds multicontour front seats with comfort headrests, upgraded climate controls with 'Air-Balance' and fragrances, upgraded seat heating with armrest heating for the front occupants and heated seats for the rear.
The BYD Sealion 5 Essential kicks off from $33,990 before on-road costs, four big ones less than the Premium ($37,990). We’re focusing on the Essential today, but don’t think that means a shallow list of features.
As you’d expect from BYD if you’ve been paying attention to the Chinese brand in its emergent years, the Sealion 5 comes with more than $34K would normally get you – a 10.1-inch central multimedia touchscreen, an 8.8-inch driver display, synthetic leather upholstery, dual-zone climate, a six-speaker sound system, wireless Android Auto and Apple CarPlay, USB-A and -C ports front and rear, digital radio and keyless entry.
On the outside, LED headlights and tail-lights are the same for both variants.
Both also have 18-inch wheels, not unwelcome for the benefits of on-road comfort.
Consider that the most popular SUV in the country, the Toyota RAV4, costs at least $45,990 without the benefit of a plug-in drivetrain (yet) and comes with, on paper, a more sparse list of features.
The closest PHEV competitors are still more pricey, including the Geely Starray ($37,490) and Chery Tiggo 7 ($39,990), and arguably lack the brand power BYD has come to enjoy.
This lone E-Class variant is powered by a turbocharged 2.0-litre engine pumping out 190kW and 400Nm, assisted by a 48-volt battery system. Under EQ boost, an extra 17kW and 205Nm is available for a short time.
It’s hooked up to a nine-speed auto that drives the rear wheels, and it’s all pretty traditional… for 2024, that is.
Mercedes says the E300 is able to hit 100km/h in a respectable 6.3 seconds.
The Sealion 5’s front wheels are driven by a combined maximum of 156kW thanks to a 1.5-litre four-cylinder petrol engine (145kW/300Nm) and a permanent magnet synchronous motor (72kW/122Nm).
BYD claims a 0-100km/h sprint of 7.7 seconds for the Sealion 5 Essential, four tenths faster than the Premium despite only a 61kg difference in kerb weight.
Mercedes claims the E-Class drinks 7.2L/100km on the combined cycle, and though we weren’t able to test that properly at the pump on the launch program, the trip computer showed up to 9.4L/100km after some quite spirited driving, which gradually averaged out to about 8.6L/100km in the afternoon once some more calm, E-Class-appropriate distance had been covered.
With its 50L fuel tank, the E-Class should theoretically be able to cover 694km on a single tank if the 7.2L/100km is achieved, though realistically it would be much less, 550-600km depending on driving style.
With a charged 12.9kWh lithium iron phosphate (LFP) battery and a full 52-litre (95 RON minimum) fuel tank, BYD reckons the Sealion 5 Essential can cover 1001km under NEDC testing, which is optimistic. It claims 71km can be done on EV power alone.
Not only due to the lenient nature of NEDC testing (WLTP is more common and usually results in lower ranges), but the reality is that once the battery is flat, the engine is doing a lot more work.
Charging is slow, limited to 3.3kW (AC only), which should take between 4 and 5 hours to charge from the lower end of the gauge for the battery size. Given most PHEV owners will do this overnight at home, that’s certainly not the end of the world.
Claimed consumption figures are 1.2L/100km with more than 25 per cent battery charge, or 4.5L/100km when it dips below that.
Realistically you could do sub-50km trips and use no fuel, or never plug your Sealion 5 in and see fuel consumption soar. In any case, anything close to 1001km in a single run is extremely unlikely.
While the E-Class has taken fairly sizeable steps in terms of its tech, it remains a fairly traditional car from behind the wheel, save for a few small changes like its mild-hybrid system and rear-wheel steering.
It’s still a petrol-powered rear-drive sedan, and it feels built more for eating up highway kilometres than it does tackling twisty turns. But that’s okay, because it will still do the latter.
Comfort is the main focus, clearly, for the E300, and the big Merc does it well. We weren’t offered a car without Airmatic air suspension on the launch, but the E-Class doesn’t seem like it would be particularly rough without it.
With it, however, large bumps and minor road annoyances only make their way into the cabin in the sense that you’re aware of them, but not bothered by them.
That slight dulling of feedback does extend to the steering wheel however, where, despite the rear-wheel steering making the car more nimble, the feedback to the driver is less encouraging of eager driving.
While 190kW on paper doesn’t seem like enough, the E-Class makes do with its meagre engine quite well - and even though it can seem like it’s working a bit too hard at times, the E-Class’ natural state isn’t responding to a planted foot, so it’s unlikely to be a daily bother.
Engine noise, as well as wind and road noise are suitably dulled by the E300’s NVH fitout, too.
The tuning of its drive modes, in particular Comfort and Sport, seemed well-judged on our drive loop, with the option to set the 'Individual' mode to a custom configuration, most elements in Comfort while the drivetrain is set to Sport is particularly helpful when on gentle, high-speed country roads.
If you do start to approach the limits of the big sedan’s capability, it’ll let you know fairly early on. The heavy E-Class isn’t prone to sudden lurching or poor handling, and isn’t much phased by mid-corner bumps.
It’s not as dynamically engaging as some rivals, particularly the 5 Series, but it does appear to be a better provider of cross-country comfort.
You might expect a car at this price, regardless of its drivetrain, to be underwhelming from behind the wheel.
That, then, makes it even more pleasantly surprising that the BYD Sealion 5 is actually rather competent. Not massively exciting or dynamic, but certainly not a disappointment.
The Sealion 5 is, save for a couple of arguably minor annoyances, quite easy to get used to and drive.
Firstly, when making proper use of its electric power, the drivetrain provides enough shove for its intended use. It’s not overly powerful, but you won’t have trouble overtaking. It’s the same with most of the inputs, the steering is light but not completely numb – again about right for how the Sealion 5 will be driven.
Perhaps its biggest departure from expectations based on other cars from China is its suspension is on the stiffer side of things, but again it’s not unruly or too rugged. In fact, it does provide a better sense of control than many of its compatriots.
Again, the biggest issue with the Sealion 5 day-to-day is its driving position, the steering column adjustment isn’t up to scratch and there’s not really a perfectly comfortable seating position (I’m a very standard 178cm).
On long trips, you might also find the engine gets quite noisy once the battery power is gone as it works hard to pull the mid-size SUV along under acceleration.
Its driver-assist systems are, you might be pleased to hear, on the calmer side of things – BYD is getting better at calibrating its safety features and I didn’t find myself rushing to switch it all off as quickly as usual.
It can still be a bit too persistent in its lane-keeping, but it’s a big improvement on the way things were.
ANCAP hasn’t had a go at crash-testing the E-Class yet, and it might not given the relatively small number that will be sold here compared to volume models, but Mercedes’ track record with safety is pretty stellar, and it’s extremely rare for a Mercedes to not cop the maximum five stars.
In the new E300 there are 11 airbags - plenty for a sedan. Mercedes lists front airbags, knee bags and pelvic/thorax airbags for the driver and front passenger, side bags for the rear and a front centre airbag.
It also comes with a fairly extensive suite of safety tech, including the usual ABS, lane-keep assist, blind spot monitoring and surround-view parking cameras.
But on top of that, there’s also ‘Evasive Steering Assist’, semi-automated cruise control with sign recognition, distance assist for following leading vehicles and can even project light arrows onto the road if leaving your lane, when 'Digital Lights' are optioned.
The E-Class also has a function if an imminent collision is detected in which it can, depending on the type of collision, take occupant protection measures. In the case of a side-on collision, the E-Class can “move an affected front occupant towards the centre of the car” before impact.
There’s no ANCAP rating for the Sealion 5, but the list of safety kit isn’t lacking on paper.
BYD lists seven airbags ,including full-length side-curtain bags and an important centre airbag, plus there’s a whole suite of tech that’s, as noted, better behaved than past driver-assist systems from BYD.
The Essential only misses out on a surround-view parking camera and front parking sensors, both arguably important safety features for parents, but the rest of the list is the same as the Premium including adaptive cruise control, lane-keep and lane departure assist, traffic sign recognition, blind-spot monitoring, rear cross-traffic alert with rear AEB (as well as front AEB, of course) and tyre pressure monitoring.
The E-Class comes with Mercedes’ fairly industry standard five-year, unlimited kilometre warranty, though Mercedes-Benz Australia was unable to confirm exact servicing pricing on the launch.
It does however list pricing for the E-Class on its website for a three-service pack at $3325, four at $4535, and five at $6800, the latter averaging out to $1360 each.
This could increase with the new generation car, and Mercedes doesn’t list estimated serving pricing for new E-Classes yet in its booking system (I checked with one of the test cars).
Servicing intervals are every 12 months or 25,000km, whichever comes first.
BYD has a six-year/150,000km warranty, which is probably more than you’d need in terms of distance but is behind many competitor brands’ timelines – seven to 10 years is becoming the norm, even if it’s conditional.
An eight-year/160,000km warranty covers the battery, which is about par for the industry.
Servicing for the first five proper services ranges from between $285 and $930, plus there's a free check-up six months into ownership and a total cost over the span of $2355 – an average of $471 per service.
BYD has just over 100 dealerships in Australia, so finding one for servicing shouldn’t be too challenging.