Tesla Model Y vs Volkswagen Tiguan

What's the difference?

Tesla promised wholesale improvements to the Model Y, and this Juniper update delivers where it counts. But with increased, and sometimes cheaper, competition arriving every day, the pressure remains on Tesla to keep the Model Y ahead of the pack.

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.

We’re not talking massive changes here – more a modernising of the Model Y offering that doesn’t really change the shape or dimensions. 

The most noticeable changes outside are the front and rear light bars, spanning the width of both the bonnet and the boot. They’re a nice touch, and seriously soften what many (including me) consider the worst angles of the Model Y. There are also new headlights, a refreshed front bumper and a new look for the alloy wheels.

Inside, it is the absolute definition of pared-back minimalism. In fact, some could argue it’s gone a little bit too far.

There are no physical buttons anywhere but on the steering wheel, and there's just the one stalk, which has the sole function of operating the indicators. Everything else - mirrors, windscreen wipers, headlights etc - are accessed either through the steering wheel, or through the central screen.

And that includes the gear selector, which is now a swipe-down-for-reverse, swipe-up-for-drive function on the central screen. You might love that, but I don't. I'm sure I'd get more used to it, but initially it did nothing but slow down how quickly I could get the car moving.

Helpfully, the central screen is big and very easy use, and logging into Spotify and Apple CarPlay does largely negate the missing phone mirroring – though if the function exists, I couldn't get it to read my incoming texts to me.

Our test car's cabin was black but highlighted with quality-feeling fabric panels in the doors and on the dash, which are then framed by a metallic-feeling mesh, helping the Model Y's cabin feel definitely elevated from the vehicles that came before 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.

The new Model Y stretches 4792mm long, 1982mm wide and 1624mm tall, and the practicality perks of the outgoing model still shine strongly in this new version.

Climb into the backseat and you’ll find a seriously spacious area, and one that feels even bigger and lighter thanks to the completely flat floor and the glass roof.

Even sitting behind my own 175cm driving position, there was ample knee and headroom, and the addition of the 8.0-inch rear screen, which supports two headphone connections, is a clever touch. Gone are the mind-numbing days of staring out the window on long family road trips. Now, kids get access to YouTube, Netflix and a heap of games.

There are also two USB charge points, and a pull-down divider that separates the comfortable rear seats. The door pockets front and rear are sizeable, and cabin storage abounds, including a hugely deep storage bin that separates the front seats.

Open the boot, and remove the shade, and you'll find another fairly massive storage area, including a deep hidden area under the boot floor. But you won't find a spare tyre – instead Tesla offers a 24-hour call-out service for the life of the warranty, where someone will come and repair or replace your tyre, should you have an issue.

Tesla isn't good at detailing specifics about its vehicles, but says you can expect a total 2138 litres of storage space in the Model Y, presumably with the rear seats folded flat and measured to the ceiling.

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.

Again, Tesla keeps its cards close to its chest on specific outputs, but data we've seen points to this Tesla's rear-mounted electric motor producing 255kW, a smallish increase from the 220kW of the outgoing model.

Tesla says that's enough to produce a sprint to 100km/h time of 5.9 seconds.

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.

Again, more cloak and dagger from Tesla here, but most reporting suggests a 75kWh battery is housed beneath the new Model Y.

We do know that our rear-drive Model Y will deliver a claimed 466km driving range on the WLTP cycle.

Charging is capped at a reported 220kW, with the brand suggesting 238km in driving range can be added in 15 minutes when using a 175kW Supercharger. Home AC charging is capped at 11kW.

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.

Reviewing a Tesla Model Y at the moment is no mean feat. The company's very public figurehead is fighting for a front-row grid position in the battle for world's most unlikeable human at the moment.

But anyway, journalist hat on, personal views aside, Tesla has done a good job with the new Model Y. I actually didn't much like the outgoing model – the ride was too harsh, the steering too darty and the cabin too austere – but Tesla has comprehensively overhauled each of those drawbacks to create a car that is genuinely much better than it has ever been before.

Let's start with the cabin. It's still austere, but the quality feels higher and more premium, and while I'll die on a hill of the screen-controlled drive selector being a bad idea, it is otherwise now a nice place to spend time. The screen and the software powering it largely replace the perks of Apple CarPlay, and the addition of the rear screen is a very good one, too.

But the biggest improvements are in the way the Model Y drives. It's far more compliant on Sydney roads, while the steering sensitivity has been dialled back so it doesn't feel as though you're constantly making corrections.

I also like the power delivery in the RWD. It's not lightning fast, but the grunt is constant and feels really instantaneous and usable.

It's no sports car, though. Our test car took in some of the windiest roads in greater Sydney and beyond, and while the body roll and composure feels on point, the Model Y does struggle with really sharp cornering. The aggressive traction control was a constant passenger on the really challenging stuff.

Overall, the improvements are good, and very noticeable.

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.

Underwhelming, I'm afraid. A four-year/80,000km warranty might be the worst offered by any mainstream brand in the country. For the record, five-year/unlimited km is now the minimum standard, with many brands far exceeding that.

Servicing intervals are a bit scattered, with the brand instead listing when things need to be done, rather than a traditional schedule.

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.