Subaru Outback vs Volkswagen Tiguan

What's the difference?

The Subaru Outback Sport Touring XT is what you get when you want a beefed-up station wagon masquerading as an SUV that can handle adventuring and haul the family around in comfort. The limited edition has all of the great features you'd expect from a top model and a reasonable price tag but its fuel thirst will turn some people off.

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.

The Sport Touring XT model is only available in the exclusive Geyser Blue paintwork (you'll either love it or hate it), has green accents scattered across the body and sports sharply styled and dark 18-inch alloy wheels.

The rear gets black badging and a spoiler but the black plastic moulding that Subaru is well known for is well and truly present.

There are some small design differences between the limited edition and it's siblings but at the end of the day it looks like an Outback.

Head inside and you'll find a solid and well-built cabin. The dashboard features a flashy 11.6-inch tech screen but the instrument cluster is still mostly analogue with a small 4.2-inch screen.

There are heaps of buttons and dials to play with and you also get a proper gear-shifter. The design will make this a winner for folks who want a car to look like a car, with its controls where they expect them to be.

Overall, the cabin feels premium but isn't fussy.

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 The previous car’s hard and angular character lines have been replaced by curvy finishes over the top of the wheel arches, paired with heavier contours down the doors and across the nose.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.

The cabin of the Outback has always been practical but the premium features this grade comes with ensures proper comfort for all occupants.

Seat comfort is high with the powered front seats that have heat and ventilation functions but the driver benefits the most with the extendable lumbar- and under-thigh supports.

The rear row is almost as comfortable as the front where passengers feel secured by the padded side bolsters, while taller occupants will love the head and legroom on offer. The heat function for the outboards is appreciated and the directional air vents are easy to position.

The 213mm ground clearance means it's easy getting in and out of the model but access to the back row is a little annoying. The footwell lip sits high and catches unsuspecting feet but it's the doors that made my eight-year-old grumble this week because they're heavy to operate.

Storage up front isn't class-leading but you get a glovebox that fits a manual, a dual-opening middle console, two cupholders and drink bottle holders, as well as a sunglasses holder and small cubby in front of the gear-shifter (which is annoying to access).

Storage is much better in the rear with four map pockets, storage bins in each door, two cupholders and two drink bottle holders to choose from.

The boot has 522 litres of capacity available, which is plenty of room for a road trip or a big grocery haul and the level loading space makes it easy to slide things in and out. You get a proper full-size spare tyre, which is rare nowadays and the powered tailgate is always a handy feature.

Technology feels well rounded and the touchscreen multimedia system is responsive and easy to use. However, the portrait position makes the icons and text on the wireless Apple CarPlay look small and I may have made a few accidental calls this week because of it.

The satellite navigation is easy to use and there's also wireless Android Auto. Charging options are decent with each row getting a single USB-A and C port but the front misses out on a wireless charging pad.

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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.

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.

The Sport Touring XT gets a 2.4L four-cylinder turbo-petrol boxer engine that produces a hefty 183kW of power and 350Nm of torque.

The re-tuned continuously variable transmission (CVT) system feels like it is changing gears but it's smooth and punctual, no matter the speed.

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.

Unfortunately, the turbo-petrol engine is thirsty and the official combined fuel cycle figure is 9.0L/100km.

With its 63L fuel tank, you have a theoretical driving range of up to 700km, which is best-case scenario but expect less range if you’re a city dweller.

After doing a mix of open road and city driving this week, my real-world usage came out at 9.3L, which is better than I expected.

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.

The Sport Touring XT model is nice to drive. The best word to describe the on-road experience is ‘smooth’.

Power delivery is prompt and getting up to speed feels effortless. It's a great open roader but also feels spritely in the city.

The ride comfort is excellent and it’s only when you hit the highway that the wind noise starts to creep up, otherwise, the cabin is quiet and you can chat with back passengers without raising your voice.

The higher ride doesn’t translate to a bumpy suspension and while you’re aware of the road, you’re never bothered by it.

The steering is on the right side of firm for it to feel agile and competent no matter what you’re throwing at it. Visibility is also pretty good but the headrests in the back seat, when up, can hinder your rear-view vision.

The Outback sits at 4870mm long and 1875mm wide, so it fills out a car space but the higher ground clearance means you’re not worried about scraping on ramps and it’s relatively easy to park.

However, it feels cheeky to not have a 360-degree view camera system at this grade level. The reversing camera it comes with is sufficient, but you miss out on front parking sensors.

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.

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.

Subaru offers the Sport Touring XT model with a five-year/unlimited kilometre warranty but it’s becoming more common to see longer warranty periods being offered now.

You can pre-purchase a three- or five-year servicing program and the three-year program costs $1406.57 (average of $469).

The five-year option costs $2646.17 (average $529 per service) which is reasonable for the class.

Servicing intervals are good at every 12 months or 15,000km, whichever occurs first.

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.