Volvo XC60 vs Mercedes-Benz C350 E

What's the difference?

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.

Plug-in hybrids will probably not appeal to all buyers, but in the premium space they make sense.

Smooth electric driving paired with the potential for weekend trips outside the 100km-or-so range make the C350e a decent thing, let alone its price parity with the C300.

It still doesn’t top the charts for value or practicality, but even aside from the PHEV tech, the C350e remains a fun-to-drive sedan that holds its own in the executive space.

Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.

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.

The C350e doesn’t depart massively from the familiar visual formula that is the current ‘206’ generation C-Class and that’s no bad thing.

Call it conservative if you like, but having seen what’s possible when Mercedes takes risks (hello EQ models), the traditional Mercedes design language is put into healthy perspective. 

Handsome proportions and lines without any fuss - there are no unnecessary creases or panels or materials.

The plug-in C350e comes, as mentioned, with the AMG Line pack, adding 18-inch five-spoke AMG wheels, an AMG front apron, grille insert, and of course EQ Hybrid badging.

The pack also includes AMG Line styling inside, where you’d have to be a Mercedes regular to spot the specifics. The AMG-style steering wheel and seats are the biggest giveaways.

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.

The space inside the C-Class remains straight-forward as ever. The layout and features don’t stray from convention, meaning there’s a sizable central screen, digital driver display, central cupholders, and places to put things like a phone, with wireless charging included.

The electrically adjustable seat and steering column make getting into a comfortable position easy, and the memory settings keep it that way.

While physical buttons are scarce, the key controls are easy to access via the central multimedia touchscreen and there’s a lack of complicated sub-menus. It's a refreshingly straightforward system compared to some from rivals, especially that of former category benchmark BMW.

There are fewer than a dozen main tile buttons on the menu, and they’re clear and easy to work out. The main screen also defaults to the navigation, and the climate controls are always visible on the touchscreen.

The central storage area is laid out so a phone sitting in the charging pad is slightly hidden, meaning it’s not a distraction, plus the cover means the cupholders and storage can be hidden away. Tidy!

The AMG-style steering wheel’s haptic controls can be used as regular buttons, but more than once on the test drive I nudged the volume and turned my music back on, just a minor annoyance.

In the second row, there’s generous space for a mid-size sedan, and the seats are comfortable for an adult to ride along for a lengthy trip.

There’s a centre armrest, hidden cupholders, and a generally light and open feeling thanks to the panoramic sunroof.

The battery for the hybrid system sits under the second row seats, which means there’s no uneven flooring in the 315L boot.

The Mercedes-Benz C350e kicks off from $98,200, that’s before options and on-road costs.

And there are some key options, the main one being the ability to DC fast-charge which costs $1500 and brings the total to $99,700.

Pricing sits par with the C300 non-PHEV because of its similar specification, and Mercedes Australia said it wanted to give buyers the choice of internal combustion engine (ICE) or PHEV without having to consider the costs.

There’s a decent stack of standard kit in the C350e, including power adjustable heated leather seats, a 12.3-inch multimedia touchscreen and same-size digital driver display, head-up display, and wireless Android Auto and Apple CarPlay.

The C350e also scores some more fun stuff as standard, including a Burmester surround sound system, panoramic sunroof, the Driving Assist Plus pack, augmented reality MBUX, and the AMG Line pack which adds some sportier-looking design features.

It also comes with Mercedes’ Comfort Suspension which includes self-levelling suspension, and Digital Lights with adaptive high beam.

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.

The C350e’s plug-in hybrid drivetrain consists of a 2.0-litre turbo-petrol four-cylinder engine and an electric motor that drives the rear wheels via a nine-speed automatic transmission.

The combustion engine’s peak outputs are 150kW and 320Nm, while the 95kW/440Nm electric motor works with it to land on a total system output of 230kW and 550Nm.

While it’s not lightning quick, the C350e has a decent claimed 0-100km/h sprint of 6.1 seconds, and from the driver’s seat it certainly feels brisk enough to get out of its own way.

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.

Mercedes officially claims the C350e has a driving range of 104km under NEDC testing, with a 25.4kWh battery supplying the juice.

Official fuel use is just 1.5L/100km, but Mercedes says that becomes 7.6L without any battery charge to help it out.

Under standard 11kW AC charging, it’s about two hours from flat to full, but with the optional 55kW DC fast-charging, it takes about 20 minutes from flat to 80 per cent.

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.

The C350e has a few drive modes that are mostly self-explanatory, those being Battery Hold, Electric, Hybrid, Sport and Individual.

You’ll likely find yourself using Electric and Hybrid most of the time, so we’ll focus on those. Sport is fine but somewhat defeats the purpose of the plug-in system for day-to-day driving.

In electric mode, the C350e doesn’t feel like it’s lacking any power without the engine helping it along. Acceleration is smooth, brisk enough, and a 130km/h top speed means you won’t need the engine on your commute.

Realistically, its 104km range is probably somewhere closer to 80km, but covers you for a decent daily distance.

Let the car use the engine to help out via Hybrid mode and, if you’ve got music playing, you might not notice the engine starting and cutting. The system is smooth and it means a much longer life out of the battery before needing to charge. That, and there’s the benefit of more brisk acceleration thanks to the hefty 230kW/550Nm total outputs.

Everything else about the C350e is classic C-Class - the ride is controlled and the suspension does a decent job of soaking up bumps and rough roads, the comfort and self-levelling suspension makes cornering smooth and inspires confidence.

The most noticeable shortcoming for the car is its transmission hesitation if you put your foot down quickly, though the ability to use the paddles to choose your own gears in Sport mode avoids this.

In Electric or Hybrid, the paddles decide how much braking regen to apply, a useful feature that lets you recuperate some power for the battery if your drive includes a lot of downhill slopes or if you’re avoiding relying on the brake pedal.

The C530e’s extra weight doesn’t dull its driving characteristics as you might expect from a car laden with PHEV tech, so it’s a welcome surprise that you could pick up a plush plug-in for the same price as a combustion C300.

The C-Class has a five-star ANCAP rating, but it was tested in 2022 before the plug-in variant arrived.

Still, 10 airbags and an advanced list of safety features provides peace of mind.

The C-Class benefits from the brand’s Pre-Safe collision protection system to minimise occupant injuries from an impact, even to your hearing.

It also has emergency collision avoidance via steering input, driver monitoring, speed limit assist with adaptive cruise control, and parking sensors with surround-view cameras.

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.

Mercedes has a five-year, unlimited kilometre warranty which is decent for a premium brand.

Servicing is pricey, though. 

A three-year pack covering a service every 12 months (or 25,000km, whichever comes first) costs $3355, that being just three services.

Four years costs $4630, or five includes a more expensive service and brings the total to $6890. That’s an average of $1378 per service.

Finding somewhere to spend that money shouldn’t be hard as there are 100 dealers listed in Australia.