Mercedes-Benz E300 vs Volvo XC60

What's the difference?

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.

The facelifted Volvo XC60 Ultra B5 Dark is the car at school pick-up that doesn’t need to brag. It just gets on with things and it looks good doing it. It offers a strong mix of family-focused features, comfortable and composed road manners and thoughtful practicality throughout the cabin.

The updated media system is crisp and responsive, though it could use a few tweaks to be truly intuitive. Overall, the XC60 mild-hybrid remains a solid choice for families who value understated luxury, comfort and safety over flash. It doesn’t reinvent the wheel, but it does what it does well.

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 XC60 has a graceful, poised curbside presence. Its wide stance and smooth body panels give it a confident silhouette, while the redesigned grille with dark accents, integrated intake vents (both faux and real), and those sharp 'Hammer of Thor' headlights tie it all together. It’s not trying to be sexy, but it is undeniably handsome. It's the kind of SUV that turns heads quietly rather than shouting for attention.

Inside, the vibe is pure Scandi chic. There’s a refreshing lack of plasticky surfaces, with everything feeling solid and premium to the touch. The supple Nappa leather seats and expansive panoramic sunroof instantly make the cabin feel airy and refined.

Taking centre stage on the dash is a new 11.2-inch portrait-style media display. The layout is a little too reminiscent of an oversized iPad for my taste, but the crisp graphics and quick touch response are big pluses. Adding a touch of craftsmanship, the crystal Orrefors gear shifter and genuine driftwood inlays across the dash and centre console bring warmth and texture you don’t find in most rivals.

Is this facelift breaking new ground? Not really. But then, it doesn’t need to. Volvo has long been firmly planted in the premium end of the field and this update simply shows it's still cultivating all the right qualities.

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.

The XC60 is spacious without being sprawling. The front row is the sweet spot for comfort, with generous leg and headroom plus ergonomic seats that offer excellent under-thigh and side-bolster support. They also bring the luxury of heating, ventilation and even massage functions.

The rear row uses firmer padding, and while the backrest looks fairly flat, it’s deceptively supportive. Adults should be comfortable back there on longer journeys. Access is only slightly compromised by the wheel arch eating into the rear aperture, but otherwise it’s an easy SUV to get in and out of. My eight-year old pointed out that the rear doors are on the heavy side, though, and often need a good slam to latch properly.

Storage is well thought out throughout the cabin. Up front you get a decent glove box, cupholders, drink bottle holders, door bins, a dedicated phone tray that doubles as the wireless charging pad and a shallow centre console with two USB-C ports. One niggle. The cupholders don’t grip cups as snugly as they should.

The rear row has a 60/40 split with a 'ski-port' door and a fold-down armrest. And in the back, there are door bins with bottle holders, a fold-down armrest with cupholders and net map pockets. Rear passengers are also spoiled with dual-zone climate control, four directional air vents and two more USB-C ports.

One of the XC60’s best family-friendly features is the integrated booster seats, which have two height settings and fold neatly back into the base when not in use. They’re a lifesaver if you have kids who feel like they've 'aged out' of car seats but aren’t quite tall enough to go without. Of course, there are also ISOFIX mounts and three top-tether points if you still need to install child seats.

Out back, the boot offers a flat loading space, a powered tailgate with kick function and a healthy 613L of storage with all seats up (up to 1543L when the rear row is folded). You also get a 12-volt socket, a proper temporary spare tyre, and if you’ve got the optional air suspension (as per our test model) you can raise or lower the boot height for easier loading.

Tech usability is a bit of a mixed bag. The new 11.2-inch media display is sharp and responsive, and it comes pre-loaded with Google apps like Maps, Spotify and Assistant. But the Apple CarPlay and Android Auto isn't wireless, which feels like a miss at this price point.

The Bluetooth is patchy, with calls and music sometimes not syncing properly. A wired connection works better, especially for my iPhone 15 Pro Max, but I'm not a fan of leaving my phone on charge all the time. If you’re already familiar with Volvo or Polestar’s system, you’ll feel at home, but first-timers may need a little time to adjust.

There are two mild-hybrid variants in the XC60 line-up, and the one we’re driving here is the flagship Ultra B5 Dark. Priced at $81,990, before on-roads, it costs about $7000 more than the entry-level Plus B5 Bright, but that premium buys you a longer list of included features that makes the Ultra Dark feel like the sweet spot of the range. Especially considering Volvo also offers two plug-in hybrid XC60s, but those command up to $20K more!

In terms of market rivals, the XC60 sits right in the middle. The Audi Q5 TFSI starts at $81,000, while the Lexus NX 350h Sports Luxury AWD asks $87,900, both before on-road costs.

Standard equipment is generous. The Ultra Dark gets a panoramic sunroof and Nappa leather upholstery, with the electric front seats offering heating and ventilation functions plus a heated steering wheel for winter comfort. There's a 360-degree view camera system with surrounding parking sensors and a park-assist feature.

Tech upgrades include a new 11.2-inch media display with in-built navigation, Google apps, and wired Apple CarPlay/Android Auto, backed up by four USB-C ports, a 12-volt socket and a wireless charging pad. There's also a Volvo phone app, which allows users to pre-condition the climate prior to entry, have a digital key and program the spare key for any kids who might want to borrow the car!

Families will appreciate the thoughtful touches like a powered tailgate with kick function, built-in child booster seats in the rear row, a temporary spare tyre (a welcome feature), four-zone climate control and lots of storage throughout the cabin. Keyless entry sensors on every door add another layer of convenience.

Our test car was also fitted with just over $5000 worth of options, including the Bowers & Wilkins premium sound system, active air suspension, tinted rear windows, and even front seat massage functions. When you consider that many rivals charge extra for equipment that comes standard here, the XC60 Ultra B5 Dark makes a strong case for itself on value.

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 Ultra B5 Dark tested here is all-wheel drive and has a 2.0-litre, four-cylinder, turbo-petrol mild-hybrid engine. It produces up to 183kW of power and 350Nm of torque.

The 'mild hybrid' tag comes from a 48-volt system paired with an integrated starter-generator. It’s not a full hybrid, so you won’t be gliding around silently on electric power alone, but it helps smooth out stop-start driving, boost efficiency and add a little extra shove when you put your foot down.

The result is an engine that feels lively in the city and confident out on the open road, with enough in reserve to make overtaking stress-free.

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.

Volvo claims combined cycle (urban/extra-urban) fuel use of 7.6L/100km for the XC60 Ultra B5 Dark, which isn’t bad for a turbo-petrol but reminds you that this is only a mild hybrid. With a 71-litre fuel tank, you’re looking at a theoretical driving range of up to 934km which is great for a family SUV likely to see its fair share of school runs and road trips.

In my real-world testing, which included plenty of urban driving with one longer trip in the mix, I averaged 8.6L/100km. That’s a little higher than the claim, but still a respectable result overall.

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.

There’s plenty of power on tap, with enough left in reserve when you really need to push it. Around town, the XC60 keeps up with traffic effortlessly, and out on the highway it never feels strained. The transmission is fairly punctual with its shifts, though you do need to drive it a little more assertively to avoid any lag when accelerating from a stop.

Visibility is excellent thanks to the big, wide windows and higher driving position. It’s also refreshing to have a wide rear window behind the C-pillar as it's something not all rivals manage.

On the road, the XC60 feels composed and comfortable. The cabin stays quiet even at highway speeds and the suspension soaks up the worst bumps without ever feeling floaty or disconnected. Handling is equally predictable, with steering and dynamics that feel natural and reassuring. Take a sharp corner at speed and you will notice a slight loss of composure but it rights itself quickly.

Day to day it’s also very car park friendly. Parking sensors and the 360-degree camera view make manoeuvring simple, though the video feed looks a little blurry at the edges. A more seamless stitch between camera angles would improve the presentation, but functionally it gets the job done.

While the 2026 Volvo XC60 hasn’t undergone ANCAP testing yet, it continues Volvo’s long-standing reputation for safety with a comprehensive suite of features. Standard equipment includes autonomous emergency braking, blind-spot monitoring, lane keeping aid, lane departure warning, rear cross-traffic alert, front and rear collision warning, traffic sign recognition, driver attention warning and seven airbags - basically covering all of the essentials.

For families, there are integrated booster seats in the rear row, ISOFIX child seat mounts, and three top-tether anchor points. A stand-out feature is the programmable spare key, which is colour-coded in bright orange and allows you to set speed and speaker-volume limits. Which is ideal for nervous parents who share the car with teens or other young drivers.

Other practical safety touches include a protective first-aid kit and warning triangle, adaptive cruise control with stop/go function, parking assist, surrounding parking sensors and a 360-degree camera system.

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.

The XC60 is covered by a standard five-year/unlimited-km warranty, which is okay for its class, especially at the premium end. You can pre-purchase either a three- or five-year 'Volvo Genuine Service Plan'. The five-year plan will set you back $3870, which is steeper than many rivals, though Volvo sweetens the deal with five years' complimentary roadside assistance. Services are spaced at every 12 months or 15,000 km, whichever comes first.

One thing for regional owners to keep in mind, while Volvo has a decent retail footprint, there are only 34 Volvo service centres in Australia. Depending on where you live, that can mean a long drive. In my case, the nearest Volvo service centre is almost two hours away. That adds travel time and inconvenience for regular maintenance or unscheduled work.