There is a very little to choose between the two engines. Both are very reliable when properly maintained. Although faults have appeared in the past, most, if not all engines, will have been subsequently modified. The 200TDI used to suffer head gasket failure on number four cylinder, but has since received a revised gasket. The 300TDI suffered timing belt failure which was big news at the time, but, I’d be surprised to hear of any engines still running that have not had the timing gear modified. But not all engines were affected.
Specification and performance are similar. In the Defender models, for example, the 300TDI engine produce 111bhp at 4000rpm compared to the 200TDI’s 107bhp at 3800rpm. The 300TDI gives 195lb ft maximum torque at 1800rpm compared to 188lb ft, at the same engine speed, on the 200TD. Some late 300TDI Discovery model have electronic diesel control EDC which make them slightly less accessible from a DIY viewpoint.
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