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Things are going well for Subaru. In the first half of 2023, all of its models in Australia are outselling their figures for the same time last year by hundreds, some even by thousands.
Except for one model, the XV. In fact, sales have plummeted! So what happened to it? It was one of the brand’s top sellers, right?
Well, it’s still here, but now it’s called Crosstrek in Australia as it already is in the rest of the world. And maybe we lied a little - it’s selling very well. In June 2023 it outsold the Forester and Outback, both well established models in Subaru’s local history.
But the name isn’t all that’s new, because this Impreza-spinoff SUV now comes as a hybrid - available here as the Crosstrek Hybrid S.
Traditionally, Subaru has been pretty… traditional. So, will a step towards the future - electrification, that is - help or hinder the Crosstrek’s rise to mass popularity?
Without a doubt, this is Volkswagen’s most important new vehicle.
Roughly eight million Tiguan mid-size SUVs have been sold since the nameplate came into existence in 2007, and the one we’re looking at for this review is the first new-from-the-ground-up version in eight years.
While it might look familiar from the outside, don’t be fooled. This third generation car is significantly different inside and underneath with upgrades the brand will need for it to stay relevant against an increasing array of hybrid traditional rivals and newcomers from China.
Does the 2025 Tiguan have what it takes to be your next family hauler? Stick with us as we find out.
It’s not perfect, in fact, the Crosstrek has a few factors that would probably turn off groups of buyers at a time, but Subaru knows its audience isn’t ‘everyone’.
Subaru customers aren’t trying to get their fuel efficiency below 4.5L/100km, nor find the car with the most luxurious interior. They’re looking for a practical Jack or Jill of all trades, which the Crosstrek does rather well for its segment.
Few small SUVs are as agreeable on rough and unsealed roads without sacrificing suburban comfort, while its features list is practical and provides plenty for the money.
Unfortunately, the hybrid system is a little underwhelming, and if it’s the main draw of the Crosstrek for you, it could be worth considering the less expensive ($38,590) Hybrid L or even a hybrid rival like the Toyota Corolla Cross or Mitsubishi Eclipse Cross.
If the all-round ability of the Crosstrek is the draw, however, the non-hybrid L is still an excellent offering and doesn’t use a lot more fuel than the Hybrid - plus it’s several grand cheaper at $41,490.
The Crosstrek is great for active people who need a bit of flexibility in one car but for the vast majority, the hybrid probably isn’t the sweet spot in the range. However, that won’t hinder the Crosstrek as an overall model, its popularity is already proven, and the option of a Hybrid puts Subaru a little closer to the eventual necessity of electrification.
It's a hard to deliver a definitive verdict yet, because we’re still some way out from the Tiguan’s local arrival.
Expect a pricier mid-size SUV, but one which leans into its best traits as a semi-premium option, with a stellar cabin and a significant tech upgrade. What sets it apart in such a crowded segment is its ability to appeal to the keen driver, although it’s a shame Australia will miss out on some of the more ambitious and modern powertrain options available overseas, at least initially.
For now though, consider us impressed.
Tune back in in the second quarter of 2025 for all the details on the Tiguan’s local launch and pricing.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Perhaps unsurprisingly, the new Crosstrek looks an awful lot like its a development of the Subaru XV.
Which, given the latter’s popularity, is a very good thing.
While there are a lot of similarities, especially when it comes to some of the more rugged elements, the Crosstrek still manages to look quite new.
It’s rugged without having too many ‘busy’ design elements and it even looks at home in inner-city suburbs.
Of course, its raised body and cladding are mostly for practical reasons, but it gives the small SUV an adventurous aesthetic that separates it from city-focused rivals.
As essentially a high-riding development of the Impreza hatch, its size and proportions also make it look more like a ‘big car’ than a small SUV.
There’s a lot of familiarity with this new Tiguan. It doesn’t stray far from the sturdy, boxy, but pragmatic shape of the current car, at least at a distance.
Up closer, though, it’s clear there are some significant changes this time around. The previous car’s hard and angular character lines have been replaced by curvy finishes over the top of the wheel arches, paired with heavier contours down the doors and across the nose.
The face has dumped the previous chrome highlights, moving the grille lower and replacing the horizontal strips which used to sit behind the VW badge with a solid plastic bar (incorporating an LED light) running across the top.
The grille has been moved lower, and chrome has largely been replaced with gloss black and matt silver finishes. While the outgoing car was attractive in a relatively conservative way this new Tiguan makes more of a statement.
Round the back, expect a similar contemporary translucent plastic light-bar treatment to marry the rear two light fittings, with the VW badge taking pride of place alongside the TIGUAN typeface, as is the current trend.
Design elements carried over in the rear three-quarter include the shape of the rear side windows, the tough extruded bumper and the little roof-mounted spoiler. Trendy aerodynamically-styled wheel choices round out its modern appeal.
Perhaps the strangest thing about this design is how it somehow manages to make the Tiguan look smaller where most next-gen designs make new cars look much larger than their predecessors. There’s something subtle about it.
Inside is a radical departure from the now significantly dated outgoing vehicle. The somewhat drab greyscale dash, which was also strangely upright, has been replaced by something much more intriguing.
A huge piano black panel defines the character line of the dash, housing the air vents, dashboard, and new ambient lighting, sitting behind the enormous pride-of-place 15-inch media screen.
VW clearly heard the audience and for this car has put a major focus on tech. The new software to match looks much better, the screen is sharp and fast, and as usual the brand’s digital dash is easily one of the best on the market.
Swapping out old switchgear has also allowed for a more contemporary, pared-back centre console with the nicely-designed steering wheel carrying across. EV-like controls from the ID series take their place on the steering column.
This is not a car you can judge from several metres away. This is a car that's been well and truly launched into the 2020s.
Practicality is pretty much a staple of Subaru as a brand, so it should be a huge surprise that it feels that way from the driver’s seat.
The interior doesn’t look futuristic, but it does look functional.
For example, even though the centre of the dash is all screen - and we love buttons for climate controls around here - the controls for air conditioning and temperature are at least always present on the screen, no sub-menus needed.
The phone charger is large enough for even very tall phones (looking at you, Samsung Galaxy S20 Ultra, pictured), and it’s out of the way to minimise extra digital distraction.
The steering wheel’s buttons, while many, are all clear and simple, as is the iPad-like icon layout on the multimedia screen.
Storage in the front is miles ahead of the rear seats, a large central bin with two cupholders, a big glove box, and decent space for water bottles in the door cards. In the rear, two central cupholders in the armrest and a small space in the door.
But there is a decent amount of space for an adult to sit in the rear, even if the sides of the roof are a little close to the head. It’s a little like the front, where the seats are supportive and easy to adjust to a comfortable position.
Further back, the boot space is a relatively small 315 litres, though its slightly larger than the 291L the petrol versions come with - that extra space likely swallowed by a spare tyre in the petrol versions, as opposed to the smaller batteries taking up some space in the hybrids.
The previous Tiguan was always notable for how spacious its cabin was, and for the most part that pragmatic approach continues.
The re-designed seats proved comfortable over the significant amount of time we spend behind the wheel traversing central Germany, and while it feels a little smaller inside due to the much busier design of the dash, there’s plenty of room for even tall adults given the cabin's height and width.
As usual with Tiguan, it’s easy to find a comfortable and sporty seating position, and the touchpoints are all excellent with much less hard plastic in the doors and centre console.
Each door offers an enormous pocket and bottle holder, and the new car gets a two-tiered shelf design in the centre console, housing a wireless charger below.
A single multi-function dial can control either audio volume or drive mode with a quick press, and without additional switchgear. There is a versatile set of bottle holders and a centre console armrest box behind.
The huge screen is oriented towards the driver. In the pictures it looks like too much, but it’s somehow low enough and the software largely has clever shortcuts to minimise distraction.
The most unfortunate feature of the screen, though, is the requirement to control the climate via touch sliders or a screen-based menu.
If only the brand had committed to giving us two more dials to control the climate zones or fan speed as appear in its Skoda relations. Still, it’s a significant step-up from the outgoing car.
The back seat offers heaps of room for myself, at 182cm tall, behind my own driving position. The generous seat claddings continue (as usual for a VW), with adjustable air vents, a rear climate zone and USB-C ports offered on the back of the console for rear passengers.
Lovely soft trims continue in the doors, and there are a set of three pockets on the back of each front seat, good for phones, tablets, or whatever you can think of.
Boot space measures in at an enormous 652 litres, proving VW found a significant amount of space somewhere in this new design.
Need more? The second row is on rails, so if you’re not using it, or you’re using it for kids who don’t need the legroom, you can boost the load space even further.
When you’re wearing a hybrid badge and you’re up against veterans in the field like Toyota with the Corolla Cross, you want to make sure you’re offering up something substantial.
At $45,090, before on-road costs, the Hybrid S tops the range and comes with a features list that screams it from the rooftops. Or the mountaintops. Or at least as far as the gravel tracks will take you towards the mountaintop.
From the outside, 18-inch wheels are the first indicator for the ‘S’ grade - note that hybrids don’t come with spare wheels, just repair kits - as well as body coloured door handles and black plastic trim and cladding, aside from the gloss mirror caps.
The door mirrors are heated and fold away when parked, while up top there’s a sunroof flanked by roof rails, with a styled spoiler at the rear.
Interestingly, there’s no power tailgate.
LED DRLs and headlights are automatic and are aided by steering responsive active cornering lamps, while the wipers are auto rain-sensing.
Inside, dual-zone climate control and heated front seats (the driver’s is eight-way power adjustable) for the cold - all seats are leather accented - while the steering wheel and shifter are also leather-wrapped.
Tech is covered off by the usual 11.6-inch portrait touchscreen centrepiece, with sat-nav, AM/FM and digital radio, wireless Android Auto and Apple CarPlay, USB-A and USB-C plugs (in the rear, too), a wireless phone charger, and a 10-speaker Harman Kardon sound system over the usual six-speaker set-up. There’s even an auxiliary audio input.
The driver display is a small 4.2-inch unit flanked by physical dials.
Australian deliveries of the new-generation Tiguan were still a while away at the time of writing, so we don’t have precise pricing and specifications to share just yet. However, the brand’s Australian division tells us to expect a similar grade walk to the outgoing car.
This will likely mean three key variants tied to three drivetrain options. We know for now the incoming base version will retain the same 110TSI engine, but will take a significant hike in standard equipment, while the next two variants up will use upgraded engines, a mid-spec 150TSI and a top-spec 195TSI.
The bad news is Volkswagen says it will be fair to expect a price-hike on base versions, what we understand is “closer to the $50K mark”, while the outgoing car starts from $43,990, before on-road costs.
The good news is the standard equipment is “more in-line with what the VW customer expects” according to the brand, with the main problem not being price, but apparently buyers wanting things like standard leather seats and upgraded cabin tech with the more basic engine.
Next up, the 150TSI 2.0-litre all-wheel drive will replace the outgoing 132TSI, and at the top of the range, the most important R-Line grade (which VW sells the highest proportion of) will also get a significant boost, not only with the 195TSI engine (up from the current 162TSI), but also new equipment.
Across its grades, the new Tiguan will have access to new-generation matrix LED headlights, large alloy wheel choices, and a 15-inch multimedia screen with wireless Apple CarPlay and Android Auto.
There is also a completely overhauled software suite, with a new version of the VW's renowned digital dash cluster, and you can expect impressive spec highlights from the current vehicle, like tri-zone climate control, to continue over.
And this third-generation car also scores completely re-designed seats, revised ambient lighting, a new head-up display and extended soft-touch materials throughout the cabin to solidify its semi-premium market positioning.
Stay tuned closer to the new Tiguan’s arrival in Australia in the second quarter of 2025 for full local pricing and specs. That said, the cars we drove for this review were largely representative of what we might see land on our shores.
This is perhaps the part of the review you’re most interested in - as well as the following sections on efficiency and maybe driving - if the ‘Hybrid’ part of the Crosstrek Hybrid S’ name brought you here.
Like its design and interior, the engine will be familiar to anyone who has owned or driven a relatively recent Subaru - a 2.0-litre flat-four petrol engine good for 110kW/196Nm - which means it makes a little less than the standard petrol variant’s 115kW.
However, the electric motor is capable of its own 12kW/66Nm outputs, though Subaru doesn’t supply a claimed total maximum for the whole powertrain.
Drive is transferred to all four wheels - it is a Subaru after all - via a seven-step continuously variable transmission (CVT).
In some ways, I don’t envy our European friends, who can choose from a whopping eight different drivetrain permutations in the new Tiguan range.
However, again there’s good and bad news for the Australian market.
The bad news is we won’t see the new and more efficient 1.5-litre mild-hybrid engine option which is the base version (and one of the cars we drove) in Germany.
We also won’t see the surprisingly finely-tuned diesel versions, and we also won’t see the great new plug-in hybrid version, at least not at launch.
With this out of the way, what we can expect is a familiar line-up. The 1.4-litre turbocharged four-cylinder engine (110TSI) will carry over from the outgoing vehicle, producing 110kW/250Nm, a new mid-spec engine, producing 150kW/320Nm, and a new top-spec engine (dropped out of the Golf GTI, no less) producing 195kW/400Nm.
As usual, expect all three options to be mated to a seven-speed dual-clutch automatic transmission.
It's a shame the local division isn’t ambitious enough to launch with the next-gen plug-in hybrid version, which pairs the new 1.5-litre four-cylinder engine with a big 25kWh battery for an estimated 100km electric driving range.
It also brings with it robust charging specs, like an 11kW AC inverter (for a slow charge time of two hours on a compatible charger) and even the ability to charge on DC at 50kW (for a fast-charge time in half an hour).
Our experience in a German-market example proves one of the other benefits of this powertrain, which is a fuel-efficient hybrid mode even when the battery is drained.
Perhaps it’s a story of petitioning your dealer for one if you want it. No doubt the brand will be listening to on-the-ground feedback post-launch.
Subaru claims the Crosstrek Hybrid will sip 6.5L/100km on the combined cycle, which isn’t enough to blow anyone away, even when you take into account the extra fuel needed for permanent all-wheel drive. The AWD Corolla Cross Hybrid comes with a claimed 4.4L/100km.
Compare this to the 8.5L/100km reading the Crosstrek returned after our time with the car, mostly with a (somewhat unkind) mix of inner-city and semi-rural backroad driving, and it’s clear the Crosstrek isn’t one of the most frugal cars in its class.
More highway driving would certainly have lowered the figure - we’ve achieved 8.0-litres on previous testing with a non-hybrid Crosstrek - but perhaps being top of the charts for efficiency isn’t necessarily what Subaru buyers are looking for.
Of course, the Crosstrek Hybrid S employs a couple of features to avoid using fuel where it can be avoided, such as auto stop-start and its (relatively mild) electric system taking over when mostly coasting or the engine isn’t required.
Given the engines will be familiar don't expect any radical changes when it comes to fuel consumption.
We don’t have official WLTP-certified figures yet because the 1.4-litre 110TSI and 2.0-litre 150TSI engines aren’t even in production in the new body yet, but it's fair to assume they won't stray far from the 7.7L/100km of the current 110TSI, up to 8.5L/100km for the current 162TSI R-Line.
For those wondering, the difference between the carryover 110 and the new one in Europe, it’s about 0.9L/100km according to overseas figures (with the new 1.5-litre MHEV engine consuming 6.8L/100km).
Even better news is the power boosted 195kW engine has the same fuel consumption as the outgoing 162TSI.
Meanwhile, the 1.5-litre eHybrid (PHEV) version we’ll miss out on has claimed fuel consumption of just 0.5L/100km.
As usual, these turbocharged Volkswagen engines will require a minimum of 95RON premium unleaded fuel.
Two things stand out after a short stint behind the wheel of the Crosstrek Hybrid, and both become more cemented over time.
The first is that the ‘Hybrid’ part of the ‘Crosstrek Hybrid S’ isn’t quite as prominent in its real-world impact as it is in its name.
The 110kW engine doesn’t feel like it’s being massively helped along by any electric assistance, and the electric motor is very rarely doing the work by itself, as you’d find in any hybrid from Toyota or Honda.
That’s a shame, because the Crosstrek could do with a little extra oomph, if not for getting up to speed then for avoiding thrashy engine sounds under acceleration.
The CVT, while not necessarily detrimental to its performance, doesn’t help with that.
But balancing that out is a chassis and platform that’s engaging and predictable - and that’s predictable as a good thing - making the Crosstrek pleasant to pilot.
Its controls like steering and braking are nicely weighted for low speeds, commuting, and for more spirited driving, while the suspension and chassis handles surfaces from smooth suburban roads, to city tram tracks, to unsealed roads with ease, soaking up bumps and shakes nicely.
If you’re noticing a theme in this review, it’s that Subaru doesn’t seem to be chasing any ‘best at’ metrics in favour of giving the Crosstrek the ability to do a range of different driving and being at least satisfactory in any given area.
The Tiguan has always been a stand-out drive in the segment (which VW says underpins the high-spec R-Line version's popularity in Australia) and the improvements for this new-generation car lean even further into its on-road prowess.
Significant revisions as part of the new Tiguan’s upgraded MQB Evo platform include improved chassis rigidity and all-new suspension, which has an immediate and obvious effect as soon as you hop behind the wheel.
We were able to sample a 1.5-litre MHEV (an engine we won’t get, but in a trim level indicative of 'our' base car) as well as a 2.0-litre 150TDI diesel all-wheel drive (as a stand-in for the not-yet-in production 195TSI model) and both stand well above the segment in terms of handling and straight-up fun (at least for a mid-size SUV).
Don’t expect the kind of doughy ride and compliant steering of rivals, instead prepare yourself for what feels like a scaled-up Golf.
The third-generation Tiguan is defined by accurate, engaging steering, punchy and reactive engines, a sandpapered-smooth response from the dual-clutch transmissions, even at low speed, and (particularly for the front-wheel drive) an SUV which feels light on its feet.
This all makes for a mid-size SUV which, if anything, encourages you to push harder on a bit of curvy tarmac. Sure it doesn’t have the nearly EV-like smoothness of its hybrid rivals, but this is supplanted by serious fun to be had, which is extremely rare for this segment.
In our experience, the new ride is springy and reactive, although it was hard to gauge how the new Tiguan might feel in Australia due the high quality of German roads which don’t have the imperfections which riddle the surface of Australian tarmac.
It does feel a bit more locked down, but the previous Tiguan had an outstanding ride considering its more sporty intent, so I wouldn’t be surprised to see this continue.
Both turbo engine options roar to life when pushed with a pleasing tone, and as usual the dual-clutch autos are lightning fast at shifting and provide a lot more feedback and engagement compared to the usual dull CVT popular on rival mid-sizers.
The one thing which takes away from the experience is the need to interact with the climate controls via touch interface, a bit annoying and potentially distracting on the go.
On the flip side, the active safety equipment (particularly lane keep assist) is thankfully not anywhere near as overbearing as it is in some of this car’s rivals, solidifying the Tiguan’s position as a robust option for a keen driver.
As the range-topper, the Subaru Hybrid S comes with the lot in terms of safety.
And even though it hasn’t been tested by ANCAP yet, it’d be a shock if its score was anything less than the maximum five stars.
It’s what the XV scored in 2017, and the brand hasn’t missed out on full marks since the Impreza and Foresters of the early 2000s.
Nine airbags include dual front, dual front side, dual curtain, driver's knee, far side, and front passenger seat cushion airbags, plus Subaru’s 'EyeSight' safety suite does the work in crash prevention.
On top of the standard safety features you’d expect from any new car like electronic stability control and ABS, there’s a ‘Pedestrian alert system’, emergency lane keep assist with departure warning and prevention, a ‘Driver Monitoring System’ that includes drowsiness and distraction warnings, sensors and monitors for blind spots and rear cross-traffic, and of course parking sensors.
Some less common features of EyeSight include ‘Lead Vehicle Start Alert’, ‘Pre-Collision Braking System’, ‘Pre-Collision Throttle Management’, ‘Intelligent Speed Limiter’ as well as ‘Speed Sign Recognition’ and ‘Brake Light Recognition’.
Specific to the S, is a surround-view parking camera, high beam assist, plus front- and side-view monitors to help avoid kerbing wheels or bumping towbars.
It’s all fairly well implemented in the Crosstrek, though some of its chimes can be a bit much - the driver distraction alert can mistake a quick climate control change at the lights for a proper lapse of focus, while an alert for approaching speed and red light cameras comes without any indication of what the noise is for.
The new-generation Tiguan was recently awarded a maximum five-star Euro NCAP safety rating and has significantly increased its array of equipment.
Even the base Tiguan in Europe gets auto emergency braking with vulnerable user protection, lane keep assist, and blind spot monitoring with rear cross traffic alert.
There is also now front cross-traffic alert, a more thorough driver attention monitoring system, traffic sign recognition, and a safe exit warning system, alongside the usual array of stability, traction, and brake aids.
Airbag coverage has also been expanded to include a centre airbag up front, and full side airbags to join the usual curtain set.
Tune back in when the Tiguan launches in Australia to see if its maximum European rating carries across to ANCAP.
The Crosstrek is covered by Subaru’s five-year/unlimited kilometre warranty, with servicing intervals coming up every 12 months or 15,000km under Subaru’s five-year capped-price servicing.
Subaru also adds 12 months of free roadside assistance.
This is all fairly standard in the industry, though some brands like Kia and MG offer seven-year warranties, or there’s Mitsubishi with a 10-year warranty (even if it requires certain conditions to be met during the decade).
As of right now, Volkswagen offers a five year, unlimited kilometre warranty with a year of roadside assist, and it would be a shock not to see the usual three- or five-year pre-paid service packages when it launches in Australia.
On the current car, these amount to about $580 annually (for a 2.0-litre 162TSI R-Line) which is on the premium end for the mainstream SUV segment.
Expect the same service interval as the current car, too, set at 12 months or 15,000km. Check back at local launch time for full details.