Peugeot 208 vs Mercedes-Benz E300

What's the difference?

In a world of cheap, popular and well-specified Japanese and Korean small hatchbacks, it’s easy to forget the humble French cars that once helped define the segment.

They’re still around, though. You’ve probably seen a few Renault Clios, you might not have seen the tragically underrated new Citroen C3, and there’s at least a chance you’ve seen one of these – the Peugeot 208.

This iteration of the 208 has been around in one form or another since 2012 and is due to be replaced by a second-generation model in the near future.

So, should you consider the aging 208 in a busy market segment? I spent a week behind the wheel of the second-from-the-top GT-Line to find out.

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.