2025 BMW X3 20 xDrive vs Mercedes-Benz GLC200 comparison

BMW and Mercedes-Benz have enjoyed a healthy rivalry for the better part of a century. They've battled each other on racetracks, taken each other on with sports cars, pitted their executive sedans against one another, and now in 2025, the title fight is over medium-sized luxury SUVs.

BMW's X3 is a mainstay model within its showroom, combated by the Mercedes-Benz GLC. These two nameplates now make up the majority of total vehicle sales for each, but there's still additional convincing to be done in today's age.

They now have to fend off rivals like the newer Genesis GV70, the Lexus NX, Audi's Q5 (which is coming soon), and even Mazda is punching up from the mainstream class with its Large Architecture SUVs.

So, by going with an established nameplate like a BMW or a Benz – are you still getting the best that money can buy? And if so, which one is the better of the two?

We've already spent time in the Mercedes-Benz GLC since its launch two years ago, but the introduction of a cut-price, entry-level variant in the GLC200 goes directly to BMW's box-fresh X3 20 xDrive range-opener.

There's an example of each at the ready, so let's find out.

The BMW starts out less expensive on paper, but isn't not as well equipped as the Mercedes-Benz. You'll likely have to add options to get it just the way you like it. Let me explain.

Prices are up by as much as $4400 when comparing the old X3 xDrive 20i against the new X3 20 xDrive successor (it’s also a different naming convention, bear with me), but extra kit has been added as standard to offset the price increase.

No longer does BMW use an -i suffix to identify a petrol-powered variant. This is a wider push throughout the BMW model range that should proliferate once newer products come out, but the X3 is one of the newest so far to drop the -i suffix.

The X3 20 xDrive is priced from $86,100 plus on-road costs, but there are plenty of options packages to blow that bottom line out.

The car we tested was fitted with the $4000 Comfort Package (heated seats in second row, seat ventilation for front row, privacy glass, window shades, etc) and the $6000 Enhancement Package (panoramic glass roof, Harman Kardon audio, alarm system, metallic paint), unique-design 20-inch wheels ($2000), trailer tow hitch ($2200), and a knitted upper dash treatment ($1200).

This adds $15,400 to the X3’s base price, resulting in a car that’s approximately $113,000 drive-away delivered through a Melbourne dealership.

That’s a lot of extra spend to get basic bits like a sunroof, an up-spec sound system, privacy glass, and metallic paint on a luxury-level vehicle.

It compares with the new Mercedes-Benz GLC200 variant, which is marginally more powerful (150kW/320Nm) priced from $89,000 before ORCs. Audi’s new Q5 is yet to be priced for local consumption, but is considered a competitor when it arrives before the end of the year.

Powering the X3 20 xDrive is a 2.0-litre four-cylinder turbo-petrol engine that outputs 140kW/310Nm to all four wheels, plus it now uses 48-volt mild-hybrid integration to reduce fuel consumption during times of low demand and supply extra oomph under hard acceleration.

Previously, the only option in the Mercedes-Benz GLC range was the GLC300 priced from $105,100 before on-road costs.

The decision to slim down the range to a single variant was a bizarre one, but we’re glad to see the return of the GLC200 variant priced at $89,000 before on-road costs.

Buyers taking delivery before the end of the financial year will be able to secure one for $95,500 drive-away.

However, like the BMW, you can add options. There’s a $6000 Sport package (this is fitted to our tester) that adds AMG Line styling inside and out, 20-inch AMG alloy wheels, body-coloured wheel arches, and Anthracite linestructure wood dashboard trim among other goodies.

Our car missed out on the $7600 Plus package that adds bits such as a Burmester premium sound system, lane-following assist, emergency steering assist, digital LED matrix lights, and augmented-reality navigation. However, this is a pricey package to be adding, so perhaps it’s best left alone.

Otherwise, the GLC200 gets a surprisingly decent amount of equipment for a base variant. This means the full 11.9-inch infotainment screen plus 12.3-inch digital driver’s cluster, adaptive LED headlights, wireless phone charging, panoramic sunroof, 360-degree cameras, ambient interior lighting, and ‘Artico’ leather-look upholstery.

Powering the GLC200 is a 150kW/320Nm 2.0-litre turbocharged four-cylinder petrol engine matched with a nine-speed automatic transmission and all-wheel drive.

Like the BMW, it utilises a 48-volt mild-hybrid system that can add 17kW/205Nm of extra oomph under hard acceleration, otherwise it allows for the petrol engine to turn off and coast in order to save fuel.

There are plenty of deals to be had on BMW X3s on Drive Marketplace. Browse examples of cars in stock now.

You can get a closer look of the brand-new BMW X3 in person through your closest BMW dealership.

Find your nearest retailer to check out the GLC200 in the metal and evaluate all the interior options and colour choices.

The previous-generation BMW X3’s interior was a pain point for owners and media alike – it was past time for a fresher look, and that’s exactly what the G45-generation has ushered in.

BMW’s new single-panel infotainment and cluster integration looks very modern and slick across the dashboard, while plenty of controls and design changes have been moved around for the centre console.

Gone is the old gear selector knob and in its place is a simplistic little nib gear shifter, thereby freeing up space in the shroud for storage bits and pieces. There’s a large upright phone holder for two devices (though only one slot is a wireless charger), dual cupholders, a large, lidded centre cubby, and twin USB-C ports.

Perhaps even more storage would have been useful by creating a lower-floor shelf like we’ve started to see from other manufacturers.

The sporty seats of the M Sport variant are very useful for keeping you snug and tight through corners – plus they offer plenty of adjustment to get the right position. There’s a gigantic panoramic glass roof over your head, afforded by the Enhancement pack, though it’s fixed. You can no longer open up the roof in a BMW X3 fitted with a sunroof.

Fit and finish of cabin panels and parts is good, but it seems like BMW has taken a backwards step in terms of presentation and interior materials. The Mercedes-Benz does better in this regard, but more on this soon. There are hard, black plastics gracing the door panels, and black door handles that not only feel low-rent, but they can be hard to spot too.

There’s some ambient lighting that’s configurable to your preferences, but it doesn’t go nearly as far as you’d find in an alternative like the Mercedes-Benz GLC.

The knitted textile covering the dashboard is an interesting point of contrast compared to the rest of the interior upholstery, but this is an optional extra costing $1200.

In the second row, we had a spacious and airy space thanks in no small part to the large panoramic roof. It is a shame that the seat base doesn’t slide to configure the cabin’s space, but this lack of ability isn’t exclusive to the BMW X3. Otherwise, the rear seat comfort was amenable enough for my 194cm height.

There’s a tri-zone climate-control system that allows the rear seat occupants to program their own climate using a touch panel behind the centre console, plus heated seat controls and USB-C ports.

Total luggage capacity in the boot is labelled as 570 litres and this is accessed through a power-operating tailgate. The rear seats fold in a 60/40 format to afford 1700L in total storage space. This is smaller than the Mercedes-Benz GLC.

The Mercedes-Benz GLC200’s cabin is remarkably similar to that of the GLC300. This is what we call ‘getting off on the right foot’, because the GLC300 set a high watermark when it launched two years ago.

One key point is the fact that our car featured the optional Sport package that adds a sports steering wheel, sports seats, and AMG trim inside the interior. It makes a huge difference in elevating the interior look and feel, and is worth adding if you can afford to splurge $6000 extra.

Materials use is done to a very high standard and the cabin ambience is top-notch. There’s a lot of light let in by the sunroof, while ambient lighting plays a hugely entertaining part once daylight is lost. Jumping between the BMW and the Benz, it's clear that it's the latter that feels the more premium car.

Everything falls ergonomically to hand – including the power seat switches up on the door card, gear selector stalk on the steering wheel, and touchpad controls for the screens by your hand positions on the steering wheel.

And there’s copious storage about the front seats including a retractable centre console lid, a dual-door centre console bin, wireless charger, and big door card pockets. It gets a set of cupholders in the fold-down centre armrest, but it's not an intuitive solution and I'd much prefer slots next to the air vents.

The interior smells luxurious – despite the synthetic leather upholstery – and the seats themselves proved comfortable and as though they’re built to last the distance.

I had plenty of space behind my own driving position when seated in the second row (I’m 194cm, or 6ft 4in tall), plus there were air vents, cupholders, map pockets, and ambient lighting to keep me company.

At the boot, the GLC scores a kick-sensor electric tailgate that opens to a 620-litre space. The seats fold in a 40/20/40 format thanks to handy remote rear-seat releases in the boot, and there’s a cargo cover to hide away your luggage. The GLC200 stocks a space-saver spare wheel.

The brand-new BMW X3 inherits BMW’s latest infotainment arrangement that pairs a 14.9-inch central screen alongside a 12.3-inch driver’s display. They blend together seamlessly behind a single pane of glass for a suave look.

In front of the driver is a head-up display with customisable information, but there’s enough visibility of the driver’s cluster that it’s barely required.

The central screen is controlled through a traditional rotary dial, or you can simply touch the screen itself. Rather, there’s arguably too much content to the infotainment system for the rotary controller to be effective anyway.

I ended up running the majority of my week through wireless Apple CarPlay, which works really well. Also embedded within the system is wireless Android Auto, digital radio (DAB+), embedded satellite navigation, traffic and news updates, and app-based connectivity allowing remote access to vehicle check or remote locking and unlocking via a compatible smartphone.

There’s good adjustability of the main infotainment screen to view all the bits and pieces you’d like at a glance, while the digital cluster is also customisable to driver preferences.

I still don’t like the fact that the air-conditioning controls are handled through the infotainment screen, but at least there’s a hard-coded shortcut at the bottom of the display.

Mercedes’s 11.9-inch portrait-mounted infotainment screen runs the latest MBUX software and its operation is slick and feature-rich. It’s not quite as confounding as what you’ll find in the equivalent BMW, which is a win for user experience.

There’s digital radio DAB+, satellite navigation, Bluetooth connectivity, and Mercedes Me connectivity that unlocks a range of phone-activated features such as remote unlocking, vehicle diagnostics, and location tracking.

However, I spent the majority of my time with the car running wireless Apple CarPlay (Android Auto is also included).

Maps display beautifully on the big screen in portrait fashion, plus navigating your way around various settings and menus is pretty straightforward.

The climate controls are basically hard-coded to the bottom of the screen – it’s only fine-tuning where you’ll need to dive into the climate menu properly. There’s good adjustability of the driver’s 12.3-inch cluster screen and head-up display, which means that you can view varying information in an array of graphical layouts.

The BMW X3 has not yet been rated by ANCAP for safety credentials.

While the BMW X3 is not yet rated, the GLC200 variant is covered by the same five-star ANCAP rating that was awarded to the GLC300 in June 2023.

This includes a 92 per cent score for adult occupant protection, 92 per cent for child protection, 74 per cent for vulnerable road user protection, and 84 per cent for safety assistance systems.

Included safety systems designed to prevent a crash entail autonomous emergency braking (AEB), lane-centring assistance, adaptive cruise control with stop-and-go, blind-spot monitoring, lane-keep assist, and rear and front cross-traffic alert.

Nicely, safety systems are deemed universal for all BMW X3 variants – unlike the Mercedes-Benz GLC range in which certain items are reserved for more expensive specifications.

In terms of its use, I’m a big fan of the way BMW makes all of these systems configurable. You can pretty easily dive into the settings and tweak a great deal of these measures, which makes for a happy driver. Compare and contrast some safety inclusions from newer manufacturers that can’t be changed at all.

There were no undue intrusions from the AEB or lane-keep assist tech, while the adaptive cruise control was easily one of the best I’ve used on Australian roads. It was smart to detect when the car ahead was accelerating or slowing, plus the lane-centring kept me squarely within my lane.

I also like the way you can soft-press the indicator stalk to signal the lane-centring system to change lanes itself.

The Mercedes-Benz's safety suite is bolstered by plenty of active safety measures – just not to the same level as the BMW X3. It doesn’t have lane-centring for the adaptive cruise-control system, sadly.

In my time with the car, I did notice myself missing the lane-centring technology that is basically expected on cars half the GLC200’s price. It seems cheeky to remove this feature from the more expensive GLC300.

The adaptive cruise control worked fine in my experience, and it’s nice that there are no intrusive aspects such as driver behaviour monitoring.

Five years/unlimited kilometres is par for the course in terms of warranty for luxury vehicles, and the BMW X3 falls within this arrangement.

Maintenance is meant to take place on a “condition based” schedule, which means the car should tell you when it needs a service. BMW sells an upfront five-year (80,000km) service plan that costs $2475.

This is far cheaper than a Mercedes-Benz GLC200 ($7350).

Annually, the cost of insuring an X3 20 xDrive will be approximately $3003, which is more expensive than its nearest rivals. This is a comparative quote for a 35-year-old male driver living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.

Mercedes-Benz provides a five-year/unlimited-kilometre warranty for its vehicles, the same as BMW and Audi in Australia.

The service innings are longer, stretching 25,000km or 12 months (whichever occurs sooner), but the service pricing is astronomical.

Service packages are offered upfront at the point of purchase for three-, four-, or five-year plans. They cost $3400, $4690, and $7350 respectively. This is more than twice as expensive as the BMW X3 at $2475 over five years.

Insuring the GLC200 on a comprehensive cover policy costs $2586 each year. This is a comparative quote for a 35-year-old male driver living in Chatswood, NSW. Insurance estimates may vary based on your location, driving history, and personal circumstances.

The BMW X3 20 xDrive features the least powerful engine in the X3 line-up, but it’s not the most frugal – that accolade goes to the plug-in hybrid X3 30e xDrive that returns just 1.7 litres per 100 kilometres, according to the manufacturer.

BMW says the X3 20 xDrive is said to churn through 7.5L/100km on a mixed driving cycle with varied road conditions and speeds. By the time I’d spent my week with the X3, I saw an indication of 8.2L/100km.

It’s evident that although the BMW uses mild-hybrid technology to save on fuel and provide an extra power boost, perhaps it’s really meant for the latter rather than the former.

Although the Mercedes-Benz GLC200 is less powerful than its GLC300 counterpart, it’s also less thirsty. What you miss out on with reduced power outputs is made up for with a more frugal fuel efficiency.

Mercedes-Benz claims fuel consumption of 7.5 litres per 100 kilometres, and a 0–100km/h acceleration time of 7.8 seconds – compared to 7.7L/100km and 6.2sec for the GLC300.

In my time with the car, I primarily covered suburban kilometres that returned an 8.0L/100km rating. Do note, the 62-litre fuel tank only takes 95-octane premium unleaded as a minimum.

The BMW X3, in its most affordable guise, still produces all the typical hallmarks that make a BMW the sportier choice.

Compared to a rival like the Mercedes-Benz GLC, the X3 changes direction quicker, dispatches mid-corner bumps easier, and comes with a more feelsome steering system that relays good information about the all-wheel-drive system underneath.

Conversely, it’s not as comfortable to live with around town. It’s not as deft at absorbing impacts such as speed humps and feels generally more taut. That’s not to say it’s uncomfortable, but it’s worth a test drive before signing on the dotted line.

The 2.0-litre turbocharged four-cylinder engine outputs 140kW/310Nm, which is ample for the everyday journey, but I’d prefer a smidge more oomph for touring scenarios and when driving out on the open road.

I did appreciate the high degree of visibility out of the cabin – the X3 has a tall glasshouse that is easy to see out of in all directions – while the light steering efforts make the car a breeze to park in tight spots.

Likewise, the seating position is comfortable and cocooned, and you’ve got a nice perch with good adjustability.

There’s very little road noise that permeates the cabin, which is par for the course in a luxury SUV, but it’s a nice setting nonetheless. It’s only you, your passengers, and whatever you’re listening to on the radio.

Whereas BMWs typically err further on the side of performance than luxury, the experience in the Mercedes-Benz GLC200 is one of sumptuous comfort. There's no real underlying sense of sportiness that permeates the 200 driving experience, especially with its detuned powertrain.

The 150kW/320Nm are plenty powerful enough for the car's near-two-tonne body, and acceleration from zero to 100km/h in just under eight seconds is swift enough for motoring up to a freeway speed limit. Its nine-speed automatic transmission is quick to respond to sudden throttle inputs and feels out the right ratio when running up hills too.

The best attributes of the driveline are the fact that it's smooth, comfortable and refined. This is the exact experience you'll get from a GLC300, and it's great to see it reflected in its more affordable alternative.

The 4Matic all-wheel-drive system proved capable of putting power down to the ground – even around tight switchback bends on our test route – and the Continental EcoContact tyres gripped the road surface equally as well.

The GLC200 uses a 2.0-litre turbocharged four-cylinder engine, but it also draws extra power from a 48-volt mild-hybrid system that can add up to 17kW/200Nm under hard acceleration. In practice, this makes the GLC200 a spritely thing for overtaking. It also means the car can save fuel under coasting conditions, because it's able to switch the petrol engine off.

The way the engine is able to very imperceptibly switch on and off at a standstill is also brilliant. It means the usual frustrations surrounding start-stop systems aren't experienced in the GLC200. Leaning into this is the nine-speed transmission's smooth shifts.

There's a tight-enough turning circle of 11.8m, which means the GLC200 is easily manoeuvred into car parks around town, made easy with a light steering weight. However, there's not much in the way of feel through the system.

Various driving modes, in addition to critical driving settings, are accessed through a physical button beneath the screen. The GLC gets an individual driving mode where you can change your own settings, or it also has an off-road mode where the car will prime itself for light-duty off-road use.

No matter whether you're on a freeway or on city streets, cabin vibrations and noise levels are hushed to a quiet measure. No real wind noise is heard from the outside and you're not hearing anything coming from the wheels either.

One of my favourite aspects of the GLC200 experience is its ride comfort. It's a soft-tuned setting that is composed over all kinds of bumps, whether they're small imperfections or large speed humps. The soft bump absorption is similar to the W206-generation C-Class, which could exhibit a tendency to bottom out, but with the GLC's increased ride height it means the GLC's ride is soft and compliant without the same effect.

The good news is that there are no losers when it comes to spending $100,000 on a luxury SUV. Apart from the obvious expensive outlay, you are rewarded with a beautifully appointed, well-designed, impressively equipped, and brilliant-driving car no matter whether you choose a BMW X3 20 xDrive or a Mercedes-Benz GLC200.

In saying that, one of these cars goes much further in making you feel like you're driving something more expensive still – the Mercedes-Benz GLC200.

Although you could be paying more in terms of purchase price, it comes with better equipment than the BMW from the base level, and its 2.0-litre turbocharged engine packs a more convincing punch. It may not be as dynamic in a rural setting, around twisty roads, but for everywhere else, the GLC200 provides a much better, more comfortable ride and handling experience that'll make even the most mundane journeys a joy.

There's marginally more space for your passengers in the second row, there are nicer materials inside the cabin, and the technology suite is arguably easier to use.

A caveat remains that the Mercedes-Benz is an extremely expensive car to service over the long term – especially compared to the BMW. But, provided you can pay the extra outlay, it's unlikely a Benz buyer will be caught looking sideways at a BMW X3 at the traffic light grand prix wondering what could have been.

Tom started out in the automotive industry by exploiting his photographic skills but quickly learned journalists got the better end of the deal. With tenures at CarAdvice, Wheels Media, and now Drive, Tom's breadth of experience and industry knowledge informs a strong opinion on all things automotive. At Drive, Tom covers automotive news, car reviews, advice, and holds a special interest in long-form feature stories.

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