How to Choose Between Mercedes Benz and Volkswagen? (Best Models)

In this article, we pitch Volkswagen and Mercedes against each other and find out which one is the best. We also take a brief look into the histories of both the companies and compare their flagship models. 

Mercedes Benz vs Volkswagen

The following table shows important parameters of Mercedes Benz and Volkswagen:

Specifications Mercedes BenzVolkswagen
Production output2,164,18711,000,000.
Number of Models2515
Starting Price$33,950 30,000 USD
Sub-brandsMercedes AMG, Maybach, EQŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche
Parent companyMercedes Benz AGVolkswagen Group

Volkswagen is also a German car manufacturer located in Wolfsburg, Germany. Like Mercedes Benz, Volkswagen is also a big car manufacturer but the targeted audience is different compared to Mercedes Benz.

Volkswagen cars are significantly cheaper than the Mercedes and Volkswagen mainly produces small-sized family hatchbacks and executive sedans. The vehicles are not as luxurious or comfortable as some of the Mercedes Benz models but the built quality and performance are good compared to its competitors like Hyundai and Skoda.

Due to its great built quality and low maintenance cost, Volkswagen accounts for more than 50 % of sales in the sub four-metre car segment in markets like China and India. 

Volkswagen also produces cars with a variety of engines running on petrol, diesel, ethanol and flex fuels. VW has a few full electric and plug-in hybrid models which are less expensive.

Where are Volkswagen cars Produced?

Apart from manufacturing factories in Germany, Volkswagen also have factories in the following countries:

  • Mexico, 
  • the United States 
  • Slovakia
  • China
  • India 
  • Russia 
  • Malaysia
  • Brazil
  • Spain, 
  • Poland
  •  the Czech Republic
  •  South Africa. 

In markets like India, Volkswagen produces with 90 % localisation which also makes the model more accessible to the general public. 

Where are Mercedes Benz Cars produced?

Mercedes Benz has production factories all over the world but the main manufacturing factories are located only in Germany. Another location does not manufacture cars but only assembles from knockdown kits. The company has factories in 17 countries across 4 continents. 

  • Bremen, Germany
  • East London, South Africa
  • Hambach, France
  • Iracemápolis, Brazil
  • Kecskemet, Hungary
  • Rastatt, Germany
  • Sindelfingen, Germany
  • Tuscaloosa, Alabama, USA
  • Bangkok, Thailand
  • Ho Chi Minh City, Vietnam
  • Jakarta, Indonesia
  • Pekan, Indonesia
  • Pune, India
  • Affalterbach, Germany
  • Arnstadt, Germany
  • Berlin, Germany
  • Cugir, Romania
  • Hamburg, Germany
  • Kolla, Germany

The factory in Stuttgart, Germany is the mother factory, all the development, production and shipment of engines, transmissions and CKDs are shipped from this location. It is also the headquarters of Daimler AG, recently named Mercedes Benz group AG. The Stuttgart factory has a history extending back over 115 years and it is the highest tech location for the production of cars and hybrid drive systems. 

The plant has six total facilities, Untertürkheim and Bad Cannstatt are responsible for the production of engines and the forge is also located there. The transmissions are manufactured in Hedelfingen. Mettingen has a foundry for axle production.

A Brief look at Mercedes Benz history.

In 1886, Karl Benz invented the modern-day car with the petrol engine and during the same period, Gottlieb Daimler and his business partner William Maybach were in the business of converting stagecoaches by adding petrol engines.

European automobile entrepreneur Emil Jellinek first marketed the automobile by naming it after his daughter Mercedes Jellinek. 1901 Mercedes powered by a 35 brake horsepower engine became known as 1901 Mercedes. 

The production of the first Branded Mercedes Benz started in 1926 when the two companies of Karl Benz and Gottlieb Daimler merged and created the Daimler Benz company.

A brief look into the History of the VW group.

The Volkswagen Group is majority-owned by Porsche SE and it is fully controlled by Porsche together with the Piëch family. The German word Volkswagen when translated into English becomes People’s car; it was founded in 1937 by the German labour front. The most iconic car produced by the Volkswagen company is the beetle.

The design of the rear-engine rear-wheel-drive beetle became so popular that later Porsche incorporated it into its sports car models like the 911 turbo.

Today Volkswagen is the manufacturer of passenger cars, motorcycles, commercial vehicles and engine components like Turbochargers etc. considering its global sales figures Volkswagen group was the largest automotive group till 2019 defeating its biggest competitors like Toyota and Hyundai motors.

Volkswagen sales increased exponentially in the 1970s when the company launched the Passat, Polo and Golf models based on front-engine front-wheel-drive configuration. The engine was mounted transversely which allowed for a close package of the engine and the gearbox. 

The models were available in 2 door and door variants in hatchback saloon and estate body styles. Thanks to the variety of options and availability of petrol and diesel engines cars became a big hit in European and worldwide markets. 

Thanks to its popularity and growth Volkswagen owns luxury brands like Porsche, Audi, and Lamborghini. The company can share many parts and sell rebadge cars. This helps with the overall profits as the production cost can be kept low.

Volkswagen Arteon VS Mercedes  Benz S class

The Volkswagen Arteon is the flagship model launched in 2017 based on the popular MQB platform. MQB is a modular transverse matrix design and allows VW to manufacture the car in any of the production factories located in the world.

The Volkswagen Arteon is powered by an inline 4 cylinder 2.0-litre petrol engine producing 300 bhp and 350 NM of torque. 

The engine is mated to a 7-speed DCT transmission. The diesel engine on the other hand produces 240 bhp and 500 nm of torque. There is a plug-in hybrid version with a 1.3-litre engine with a combined power output of 200 bhp and 400 NM of torque, which was launched in 2020.

Mercedes Benz S Class on the other hand focuses on comfort and luxury. There are inline 6 and v8 petrol engines making around 600 horsepower. The S class is currently in its seventh generation and has the most advanced driver assistance systems on board.

S class uses AIRMATIC suspension with sports and comfort modes, the suspension has active body control systems and can vary the damping rates based on the mode selected. This gives more versatility to the handling characteristics of the S class.

Other articles about Mercedes Benz you may be interested in

Should you buy the 2020 Mercedes Benz cla250 coupe?

Mercedes Benz E Class Vs Mercedes Benz CLS

Mercedes vs Lamborghini (Which is better?


There is no outright winner in Mercedes Benz Vs Volkswagen. Both car brands are iconic and focus on different ends of the market. Volkswagen sells mid-sized passenger cars and dominates in the entry-level car market while Mercedes Benz is an Automotive behemoth when it comes to luxury and performance.


FAQs: Mercedes Benz vs Volkswagen

Which is better VW or Mercedes?

Mercedes Benz is better than Volkswagon. Mercedes Benz is a global market leader and it is present in more international markets than the Volkswagon.

Is Volkswagen bigger than Mercedes?

No Volkswagen makes small compact cars for developing markets like India and Southeast Asia. most of the models are sub 4 meters in length and they are smaller than Mercedes Benz cars.

Is Mercedes-Benz the best car in the world?

Mercedes Benz is the best luxury car in the world and sells the most number of cars in the domestic as well as international markets

Is Audi or Mercedes better?

NO Audi is not better than Mercedes Benz. Audi ranks third in the luxury car market, Mercedes Benz is at the top position followed by BMW.