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.
The march away from diesel power and towards a petrol-hybrid future in off-roaders continues. Okay, so it’s a full-sized Lexus we’re talking about, but the off-road credentials of the Toyota LandCruiser 300 Series-based Lexus LX have never been in question, have they?
The full-sized, super-lux Lexus LX might never see the Simpson Desert or the Old Telegraph Track, but that doesn’t mean it couldn’t tackle either with a fair degree of ease. So there’s no way Lexus would allow a new hybrid driveline to compromise any of that. Besides, this is the same driveline that will take the LandCruiser on its next step, so you better believe it’s the real deal.
Of course, the Lexus badge and somewhat frightening price tag also infer a high degree of plush and tech, and, let’s be honest, those elements are more likely to get a leading role in the LX’s day-to-day strut, as opposed to the walk-on part played by the off-road stuff.
So does all this make the LX one huge, high-tech mash up of conflicting priorities, then? That probably depends on how pragmatically you view motor vehicles generally, but one thing’s for sure, if the hybrid LX is paving the way for the next generation of LandCruiser powerplants and drivelines, then we’re all ears.
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.
Huge specification in terms of convenience and safety gear are matched by an equally huge range of abilities in this vehicle. As well as rock hopping with the best of them, this is also a phenomenal touring rig and a more-than-capable off-roader. Of course, whether you can see yourself clambering up the side of a muddy creek crossing in $202,000 worth of vehicle is a personal matter, but rest assured, the Lexus will do it if you ask it to.
In the case of the hybrid LX, however, the vehicle now has an extra dimension to cover off, and from what we can see, it does take the efficiency and running costs of the big wagon to a new, better place. Mind you, that may only be the case if diesel continues to cost a dollar-a-litre more than petrol at the bowser.
The shift to petrol power also brings with it a level of mechanical background noise that we’re not entirely sure fits the Lexus legend, while additions such as the camera-based rear-view mirror system seems to be a conversation starter rather than an actual improvement.
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.
In a styling sense, that big, bold, deep grille at the front won’t be to everybody’s liking, but we reckon it’s pretty well matched with the otherwise taut skin of the LX’s body.
Inside, the plush look and feel is the dominant factor, but if you look really closely, there’s a fair bit of generic Lexus stuff on show. Is that a criticism? Hardly. The leather looks and feels luxe and only some hard plastics (such as on the door cappings) belie the car’s LandCruiser origins.
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.
Like many hybrids, cargo capacity takes a bit of a blow. In this case, placement of the battery under the cargo floor means a reduction in luggage capacity from 1109 litres to 899 litres. In the seven-seat variant, capacity is 883 litres with the rearmost row folded flat. The rear seat folds 60:40 and there are good, solid tie-down points in the rear. There’s no under-floor storage, however, apart from a small compartment just behind the rear seat which locates the tools and safety triangle.
The tailgate is powered (if a bit slow in its action) and there are cup-holders atop each suspension tower, clearly a hang-over from the seven-seat variant which is not available in F Sport trim. The cargo blind is a good addition, as is the 1500-Watt power socket in the cargo bay.
In the cabin, there are plenty of grab handles and the side steps give shorter folk a leg up when entering or leaving. Once you’re in, the front seats are terrifically comfortable as well as featuring a massage function on top of the heating and cooling functions. The steering wheel is also heated.
Paddle shifts might seem odd in a vehicle like this, but they are brilliant in off-road situations, although you need to first select manual mode on the shifter to have the paddles hold each gear for more than a few seconds in most of the on-road driving modes.
Speaking of the shifter, Lexus has seen fit to once again reinvent this simple control. You now need to pull the handle towards you and up for Reverse, across and down for Drive while Park remains a separate button even though it looks like just another icon on the lever.
A pair of cup holders live over to the passenger’s side of the centre console, and there are a pair of USB charge ports as well as an HDMI port in the dashboard. But the switches for the power windows are located almost directly under the driver’s interior door pull, forcing some unorthodox wrist geometry.
At least the buttons for the climate control and off-road functions such as diff locks and ride height are, indeed, buttons and not menu items. The simple knob to control the stereo on-off and volume is a great touch, too. So is the cooled centre console under a cover that opens from either side.
The rear seat is big and wide but the high floor dictated by the body-on-frame construction means those with long legs will have their knees bent while ever they’re in the back seat. The seat cushion itself is pretty flat, too, but the backrest does recline through a wide range of angles.
Reading lights, lots of air vents and a full set of climate controls ease the pain of riding in the back, but if you want cup holders, you need to keep the centre rear seat free so the armrest that houses the holders can be lowered and snapped open. Adding to the impression that plenty of thought has gone into the rear seat environment are the pull-up sun blinds on each window. Why don’t all cars have these?
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.
While the LX line-up incorporates off-road oriented versions dubbed Overtrail, that specification is not available in the hybrid variety LX700h. Instead, the LX hybridised line-up kicks off with the Sport Luxury grades in either five or seven-seat layouts and a list price of $196,000 and $199,800 respectively. The F Sport is the new LX flagship model with its $202,000 price-tag (all prices are plus on-road costs) and is only available in five-seat configuration.
As you might imagine for a flagship badge for a maker like Lexus, there’s really nothing missing from the specification. In the case of the hybrid variants, that includes 22-inch alloy wheels, power sunroof, full leather trim and a hands-free tailgate. Those feature are part of the Enhancement Pack on lesser versions, but have been added to all hybrid LXs.
You also get four-zone climate-control, heated, cooled and massaging front seats, keyless entry and start, steering wheel-mounted controls, paddle shifters, automatic headlights and wipers, heated mirrors, soft-close doors, 12.3-inch touchscreen, digital radio, embedded sat-nav, wireless Apple CarPlay and Android Auto, head-up display, premium audio system and pretty much everything else you’ve ever seen fitted to a car.
The F Sport variant we’ve tested here is the big daddy and adds four-way adjustable head rests in the front, a heated steering wheel, specific aluminium trim, aluminium pedals, F Sport-specific gear knob, ventilated and heated rear seats, and a digital rear-view mirror.
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 hybrid driveline of the vehicle we’re looking at here marks a further expansion of buyer choice when it comes to how their Lexus LX is powered. The twin-turbocharged petrol and diesel variants will continue alongside the newcomer, although you can bet Lexus (and Toyota) will be watching the sales charts closely to see where consumer tastes fall.
The hybrid set-up here starts with the twin-turbocharged 3.4-litre petrol V6 (a lot of people - Toyota included - are calling it a 3.5, but at 3445cc, it’s not) from the Lexus LX600.
But instead of bolting directly to the 10-speed transmission, in this case, there’s a single electric motor and clutch unit sandwiched between the engine and transmission. That means the Lexus retains mechanical four-wheel drive, while the electric motor can provide extra urge for acceleration or towing as well as offering EV-only operation when it’s required (mainly in stop-start traffic).
Crucially, it also means the vehicle retains those traditional off-road qualities of low-range gearing and permanent four-wheel drive. The electric motor also contributes torque to the equation when the driver selects either Rock, Dirt or Deep Snow modes to maintain a steady flow of Newton metres.
The petrol V6 contributes a healthy 305kW and 650Nm to the picture, while the electric motor adds a further 36kW and 250Nm. When all that’s harnessed up, there’s a total of 341kW of power and 790Nm of torque on tap, allowing for a braked towing capacity of 3500kg. It also makes this variant the torquiest Lexus LX ever.
Interestingly, Lexus says the conventional 12-volt starting system and alternator for the petrol engine, means that unit could continue to operate if any part of the EV system failed.
One of the big questions over hybrid drivelines in off-road conditions is what happens if the vehicle suddenly finds itself partly under water. In this case, says Lexus, there are additional waterproofing measures which should prevent any problems mid-creek.
The F Sport grade gets a Torsen (torque-sensing) rear differential and firmer dampers for an overall sportier feel.
At 2780kg, the LX hybrid is heavy, and is at least 100kg more than the LX600 due to the batteries and other hybrid gear.
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.
Here’s where the hybrid driveline really comes into its own. On paper, at least.
Despite the added kiloWatts and Newton metres, the 700h manages an official fuel consumption figure of 10 litres per 100km. That compares with 11.9/100km for the 305kW LX600, although it’s still more than the 8.9L of the 227kW diesel-powered LX500d.
But the hybrid’s big advantage will come in city and suburban traffic where the stop-start nature of things will enable the driveline to harvest braking energy and turn that back into electricity for the battery.
Our testing showed an average of 11.2 litres per 100km in mixed conditions which blew out to 13.0 litres with more urban running. That’s pretty handy in the context of a vehicle like this and won’t be far from the real-world numbers of the diesel LX.
The Lexus carries 98 litres of petrol, split between one 68-litre tank and a 30-litre sub tank. That should give it a theoretical range of almost 800km, but again, that will depend largely on where and how it’s used.
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.
At low speeds, threading your way through traffic or parking, the LX feels like it needs a lot of real estate. Which makes sense given the 5.1-metre overall length that puts it on par with a lot of dual-cab utes. The width of almost two metres plays into things, too, and reversing down the average driveway will often have the sensors chirping at you constantly.
What’s interesting, though, is the way the Lexus seems to shrink once you’re up and running in a more open setting. Even a winding road reveals a car that is easy to place in corners and seems to feed back lots of the right sort of information in terms of what the wheels are doing and where they’re placed. The result is that you can actually hustle the LX along quite smartly if you need to.
The ride remains composed yet there’s a level of control that helps keep the big, high LX relatively flat through corners and responding sharply to the helm. Even those huge wheels and tyres and their corresponding unsprung mass don’t intrude. It’s a great trick.
Less easy to appreciate, however, is the driveline, specifically the twin-turbo petrol V6. Frankly, it’s just not as refined as we were expecting. I wouldn’t mind betting Lexus has tuned the exhaust system to make the LX sound like there’s a petrol V8 under that heavily sculpted bonnet. And at low revs, it kind of works with a rhythmic, muted, yet guttural sort of bass coming through.
But rev it harder and the engine soon reveals itself to be a V6 with all the secondary vibration and resonance that implies. Simply, this vehicle is neither as smooth nor as quiet as the Lexus brand would suggest and the harder you rev it, the more it descends into NVH (noise, vibration and harshness) territory. The issue is made worse by the fact that the rest of the package is so darn quiet.
Even the stop-start - a technology that is now well understood - doesn’t seem quite as slick as it should be. Taking off from a green light with the petrol engine stopped, the Lexus often produces a small `sonic bump’ from the driveline as the V6 fires into life. It’s felt more than heard. But it’s still puzzling in the context of this make and model.
The transmission, meantime, is as silky as you’d imagine with upshifts and even downshifts that are barely perceptible. It would be nice, though, if the transmission obeyed the paddles a bit more faithfully. As it is, the chosen gear is only held for a few seconds unless you also pull the shift lever into manual mode.
I’ll also take issue with the rear-view mirror that includes a camera view as well as a conventional mirror option. I can see the point of having a camera-view mirror (when the cargo area is piled high, for instance) but I’ve never yet met one that works properly. The problem is that the camera view that pops up on the mirror’s screen is never as faithful as it should be. Also, if you wear glasses to read, you’ll also need them to focus on the image properly. While a conventional mirror has the same depth of field as looking through the windscreen, the camera-generated view does not. Also, when used through a wet rear window in low light, the camera view is borderline useless. This tech clearly has a ways to go.
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.
It will come as no surprise to learn that the expensive LX range is well equipped safety wise, nor that the flagship version of that range features every driver aid ever dreamed up by engineers.
That includes autonomous emergency braking that incorporates pedestrian and cyclist recognition, intersection turn assist, lane-keeping assistance, lane-departure warning, blind-spot monitoring, road-sign recognition, hill-start assist, front and rear parking sensors, a reversing camera with 360-degree views, rear cross-traffic alert and braking and tyre-pressure monitoring.
On top of that, the LX gains the safety additions revealed at the 2025 facelift of the LX line-up, including emergency driving stop, safe-exit monitoring and a forward-facing camera.
There are no less than 10 airbags in the LX, including rear-seat cushion airbags and side-curtain airbags for every outboard seating position.
What’s perhaps even more impressive is that the driver aids are beautifully calibrated to the point where other carmakers should pay close attention when calibrating their own. Where some cars physically fight the driver for control of the wheel in the name of lane-keeping assistance, the Lexus instead offers a polite suggestion of a better course than the one the driver is currently on.
The Lexus LX series hasn’t been crash tested by ANCAP, but the 300-Series LandCruiser on which it’s based scored the full five safety stars when it was tested in 2022.
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.
Lexus offers a five-year, unlimited-kilometre warranty on its vehicles and throws in three years’ worth of subscription to the Lexus Encore owner privileges and benefits program. Those extras include Lexus on Demand, valet parking, roadside assistance and even complimentary access to Qantas airport lounges.
There’s also five years of capped-price servicing available.
As well as the overall five-year/unlimited kilometre warranty, there’s eight years and 160,000km of cover for the hybrid battery. That can be extended to up to 10 years provided the battery is checked for degradation every year after the fifth year.
Servicing for the LX is every six months or 10,000km which is much more frequent than much of the competition, but reflects the heavy-duty nature of the vehicle.
Lexus has about 30 dealerships in Australia, primarily in urban locations, but for many servicing and repair jobs, a Toyota dealership or service centre should be able to handle things on the LandCruiser 300-Series-based LX.