Subaru XV vs Volkswagen Tiguan

What's the difference?

Even years on from its initial launch and with only subtle changes to its main range, it’s really to Subaru’s credit that the XV feels just as capable and modern as any of its rivals.

This is not to say it’s perfect. We can’t recommend the base model, the maths don’t really work out on the hybrids, the only available engine is breathless, and it has a small boot.

But the XV’s excellent safety suite, driving dynamics, all-wheel-drive capability, quality finish and comfortable interior mean it’s hard not to be charmed by this little lifted hatch.

Our pick of the range? While the 2.0i-L is great value, we’d recommend you splurge to the 2.0i-Premium to get the full safety suite and extra garnish.

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 key to the XV’s fun and adventurous appeal is perhaps the fact that it’s not really an SUV at all. It’s rather obviously a lifted version of the brand’s Impreza hatchback, and this is to its credit.

It’s simple but tough, cute but capable, and really everything many consumers are looking for when it comes to a small, all-wheel-drive SUV. Not only does this design philosophy (of lifting wagons and hatches rather than creating bespoke “SUVs”) match Subaru’s family of products, but the ride height, plastic claddings, and tough-looking alloys offer hints of the all-wheel-drive capability that lies beneath.

Little has changed for the 2021 model year, with the XV most recently receiving a tweaked grille, updated front bumper, and a new set of alloy wheels. The XV range is also available in a fun array of colours, which Subaru hopes will help it win more of a youth vote. As an added bonus, none of the colour choices carry an extra charge.

The interior of the XV continues the fun and adventurous theme with Subaru’s signature chunky design language noticeably different from its rivals. My favourite element of this has always been the bumper-car steering wheel, which feels great in your hands in its leather-clad finish, but there are also nice soft claddings throughout the doors and big seats with nice bolstering and design.

While we like how big and sharp the main 8.0-inch screen is, if there’s one thing Subaru gets wrong it’s how busy the whole cabin package is. The visual assault of three screens seems unnecessary, and as much as I like the wheel, it is also completely adorned in somewhat confusingly labelled buttons and toggles.

Still it’s an attractive, fun, and unique design amongst its small SUV peers. Subaru fans, at least, will be sure to adore it.

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.

In some ways the XV is very impressive when it comes to its interior practicality, but in other ways it disappoints.

The front seats offer heaps of room for adults with good adjustability, and while the seating height is very high by default, there’s still lots of headroom and adjustability, with the added benefit of a very commanding view of the road for such a small SUV.

As mentioned, the doors, dash, and transmission tunnel are all clad in soft materials, and front passengers also benefit from no less than four USB ports in every grade except the base 2.0i, a huge centre console box, comfortably large bottle holders in the centre with a removable divider, a small bay under the climate unit that also houses a 12v outlet and auxiliary input, and a single large bottle holder in the doors with a small adjoining bin.

A surprise comes in the rear seats, which offered enough head and knee room for a particularly tall friend of mine. It’s rare for the small SUV segment to offer such space, but behind my own (182cm tall) seating position I had ample airspace for my knees and decent airspace for my head too, even despite the Premium and S grades having a sunroof fitted.

Rear passengers get a flip-down armrest with bottle holders, a small bottle holder in the doors, and pockets on the backs of the seats. The seat cladding is just as good as it is in the front, and the width in the rear seats is notable, however the centre seat suffers from the existence of a tall transmission tunnel to facilitate the all-wheel-drive system, and there are no adjustable air vents or power outlets for rear passengers either.

Finally, one ongoing weak point for the XV is the amount of boot space on offer. Boot capacity is 310-litres (VDA) for non-hybrids or 345 litres for hybrid variants. This is decent when compared to smaller light SUVs but definitely leaves room for improvement when it comes to the XV’s main small SUV competitors.

Space can be boosted to 765L in non-hybrid or 919L in hybrids with the seats down (again, not great), and the hybrid model loses the underfloor space-saver spare wheel, instead leaving you with a very compact puncture-repair kit.

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 XV now has two drivetrain options in Australia. One is the carryover 2.0-litre petrol engine, now with a smidge more power, and a hybrid version of the same layout with an electric motor housed in the continuously variable transmission. There is no manual variant in the XV range.

The 2.0i models produce 115kW/196Nm, while the hybrid produces 110kW/196Nm from the engine and 12.3kW/66Nm from the electric motor. All variants are all-wheel drive.

The hybrid system is powered by a lithium-ion battery pack under the boot floor, and in practice functions a bit differently from Toyota’s popular system.

We’re sure Subaru die-hards will be dismayed to know a version of the XV packing the larger Forester’s 2.5-litre petrol engine (136kW/239Nm) will not be making it to Australia for the foreseeable future.

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.

It’s not such a great story for the hybrid variant here, as even on the official numbers it only saves a tiny amount of fuel.

The official/combined number for 2.0i variants is 7.0L/100km, while the hybrid variants trim this to 6.5L/100km.

In practice it only got worse on my test. Over similar driving conditions consisting of several hundred kilometres over the course of a week, the 2.0i-Premium non-hybrid produced 7.2L/100km, while the hybrid actually used more fuel at 7.7L/100km.

It’s worth noting we’ll be holding on to the hybrid for a further three months as part of a long-term urban test. Check back in to see if we can trim this number down to something closer to its claim in the coming months.

All XV variants can drink base-grade 91RON unleaded and 2.0i variants have 63-litre fuel tanks while hybrids make use of a 48-litre tank.

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.

No matter which XV you choose, you’ll be getting a very comfortable and easy-to-steer small SUV, and the drive experience has only improved with this year’s updates.

The XV’s newly re-worked front suspension and tall ride height make for a package more than capable of dealing with anything the suburbs will throw at it. This is the kind of car that scoffs at speed bumps and potholes.

The steering is light enough to be comfortable, but provides just enough feedback to keep it engaging, too, and the always-on all-wheel-drive system provides a sense of constant security in corners and even on loosely sealed or wet surfaces.

The XV has better SUV cred than almost every other car in its class on the capability front, enough at least to make it a decent companion for seeking those unsealed campgrounds or vantage points.

Where it’s not as good is its engine options. We’ll get to the hybrid in a moment, but the standard 2.0-litre engine is underpowered for a relatively heavy small SUV, with the added burden of all-wheel drive, and it feels it. This engine doesn’t have the follow-through of its turbocharged rivals and is very thrashy when much is asked of it.

This experience isn’t really helped along by the rubbery-feeling continuously variable automatic transmission, which is at its best in stop-start traffic. It strips the fun out of trying to drive this car with a bit more vigour.

Unlike Toyota's hybrid alternatives, the hybrid XV isn’t a significantly different experience behind the wheel. Its electric motor doesn’t really have enough strength to get it up to speed, but it does assist when it comes to acceleration and coasting to help take the stress partially off the engine. The XV also doesn’t provide a hybrid indicator like Toyota does, so it’s much harder to understand the effect your accelerator input is having on the motor.

The centre screen does display the energy flow, though, so it is good to have some kind of feedback that the hybrid system is helping on occasion.

Hybrid variants also add something called “e-Active Shift Control”, which uses input from the car’s sensors and all-wheel-drive system to better tune the hybrid assistance to the CVT. In general driving terms, this lets the electric motor pick up the slack of the petrol engine when it's most needed in the corners and in low-torque instances.

On a final note, all of these moments of electrical assistance do make the hybrid versions notably quieter than the non-hybrid ones. I still wouldn’t recommend choosing the hybrid on its driving experience alone, but it will be interesting to see how Subaru can build on this technology in the future.

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 remains on par with other Japanese automakers, with a five-year and unlimited-kilometre warranty promise. There’s 12 months of roadside assist included, and the XV is also covered by a capped-price servicing program for the life of the warranty.

Services are required once every 12 months or 12,500km, and while this is a welcome improvement on the six-month intervals this car used to have, these visits are far from the cheapest we’ve seen with an average price of nearly $500 per year.

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.