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 Australian market hasn’t truly revolved around a sedan since I was a kid. These days it’s all about SUVs, and anything low-slung is easy to overlook when it comes to family hauling. Add to that the current fixation on hybrid and electric powertrains, and a mid-size petrol sedan feels almost out of step.
And yet, here’s the MG7.
It’s a mid-size fastback with a turbo-petrol engine and just one trim level. Its sharp styling is matched by an even sharper price, and it doesn’t seem particularly concerned about not fitting the current mould.
It lines up against the Toyota Camry SL, Skoda Octavia Sportline and Hyundai Sonata N Line and raises an interesting question. Is this the sedan comeback nobody saw coming? And could it remind modern families why sedans were once king?
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.
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.
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 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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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 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.
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.