Volkswagen Tiguan vs Volvo XC40

What's the difference?

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 Volvo XC40 Recharge Twin Motor is a cute small electric SUV that offers a decent specs list and a sweet urban driving experience. It’s not the nicest ride on a longer journey but it does have a decent range to be able to tackle one, if needed. I didn’t love the interior design but there’s lots the XC40 gets right.

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 The previous car’s hard and angular character lines have been replaced by curvy finishes over the top of the wheel arches, paired with heavier contours down the doors and across the nose.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 XC40 Recharge sees some design changes from its fuel-based counterparts and that’s mainly seen in the front because you get a body-coloured panel instead of a standard grille. The 20-inch alloys feature a chunkier-looking design but the front still boasts the cool ‘Hammer of Thor’ headlights (which I'm rather fond of).

The interior is where the electric powertrain loses me because the fuel-based equivalent is so much nicer inside with its leather-accented upholstery and trims.

It's lovely that there has been a conscious effort to use recycled materials and non-leather upholstery throughout but I'm left with the strange-feeling that synthetic seats don’t reflect the grade or price level of this car. 

Other than the cool-looking topography inserts on the dash and front doors and the 9.0-inch vertical multimedia system, it’s pleasant but a little basic in the cabin. Which is shame because the exterior is cute as hell.

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.

Front passengers enjoy the most space and I have plenty of head- and legroom up front. It’s a really easy car to get in and out of and the individual storage is very good for the class. 

Front passengers enjoy a glove box, middle console with a removeable bin, two cupholders, utility tray and skinny drink bottle holders in the storage bins in the doors.

In the rear, passengers get map pockets on the backs of the front seats, two cupholders in the fold-down armrest and small storage bins in each door.

The synthetic leather-trimmed seats look neat and tidy but are very hard in the cushion, which makes them a tad uncomfortable on longer trips. The rear seats are much the same.

Charging options throughout the car are good with the front enjoying a 12-volt port, two USB-C sockets and a wireless charging pad to choose from. The rear also gets two USB-C ports and there's another 12-volt outlet in the boot.

The rest of the technology is easy to use once you spend some time with it. The 9.0-inch touchscreen multimedia system features built-in Google Maps, Assistant and Play Store apps, as well as, YouTube.

The 12.0-inch digital instrument panel isn’t customisable but I like the way it pulls through the satellite navigation screen and directions.  

Because of the dual-motor powertrain, your boot capacity drops to 419L from 452L for the single-motor variant. It is large enough for my grocery shop and random errands and you can fold the floor up to create a deep storage well for additional space. Fold the 60/40 split-folding rear seat and available space expands to 1295 litres.

I don’t like the hardened cargo liner, it feels and looks a little cheap, but I do like the powered tailgate. There’s also handy frunk storage of 31L, which is perfectly sized for any charging cables you will have.

There are two powertrain options in the XC40 family, a mild-hybrid or pure electric. The latter gets two variants and we’re in the top-spec Recharge Twin Motor, which is priced from $85,990, before on-road costs. This positions it in the middle of its nearest rivals but in its family line-up it’s a big $23K jump from its Ultimate B4 AWD combustion equivalent.

The standard features list for the XC40 is robust and there are some great premium features, like the electrically-adjustable and heated front seats with extendable under-thigh support and electric lumbar control.

A panoramic sunroof makes the cabin feel light and airy, the rear outboard seats have heat functions and the driver enjoys a heated steering wheel. You also get a premium 13-speaker Harman Kardon sound system in the Twin Motor.

Other premium features include pre-entry and after-park climate control (perfect for those super-hot days) and a hands-free powered tailgate.

Technology highlights include a complimentary four-year subscription for the built-in Google Assistant, Google Maps and Google Play Store which are accessed via the portrait-style 9.0-inch multimedia touchscreen.

There's also access to apps like YouTube, which delighted my seven-year old and would be handy on any charging stints for some diversion. It's surprising there isn't wireless functionality for Apple CarPlay and Android Auto but they can be hooked up via cable.

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.

The XC40 Recharge Twin Motor features two electric motors which are powered by a large 82kWh lithium-ion battery and produce a combined power output of 300kW and 670Nm of torque.

Which is downright fun because it can do a 0-100km/h sprint in just 4.8-seconds!

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 official energy consumption figure is 19kWh/100km and I averaged 19.2kWh over a fair mix of urban and open-road driving. The energy consumption isn't bad but some rivals do sit closer to that 16.5kWh mark.

The official driving range is up to 485km for this model but I only ever saw a top range of 410km. That's not terribly surprising given I wasn't shy with the power use but there was a little bit of range anxiety on longer trips.

The XC40 Recharge Twin Motor has a Type 2 CCS charging port which means you can benefit from faster charging speeds. On an 11kW AC charger you can go from 0-100 per cent in eight hours but on a standard three-pin house plug socket expect that wait time to go up significantly.

On a DC fast charger expect to go from 10-80 per cent in as little as 33-minutes.

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.

Like the Polestar 2 there’s no ignition button on the XC40. You shift into drive to ‘turn on’ and after you park, you simply get out to turn it off. It takes a little while to get used to but it’s a cool feature. 

The twin motors deliver a hefty kick and you never worry about not having ‘enough power’. In the city it’s zippy but on the open-road you also feel comfortable getting up to speed or overtaking because the power distribution is so well-balanced because it’s an AWD.

I customised my steering wheel ‘feel’ to firm and it makes the handling crisp and direct. You feel like you’re in total control whenever you have to tackle be it tight streets or small car parks.

The blind-spot visibility is compromised by how wide the B and C-pillars are and I find that I'm relying a lot more on the blind-spot monitoring system to compensate.

The XC40 loses a few points for me in terms of ride comfort. As mentioned, the seats aren't terribly comfortable but the suspension is hard enough that you notice every bump, as well.

Road noise is also quite pronounced and it doesn’t sound refined when you drive at higher speeds, which is a shame. The flip-side, though, is that you don’t notice those things as much on short, urban trips.

The standard regen braking isn’t customisable and you don’t notice it until you switch over to a 'one-pedal' function. I found this function uncomfortable to use as it’s very aggressive and creates a jerky driving experience. 

Because of its 4440mm length and tiny 11m turning circle, you won’t struggle in a car park! The 360-degree view camera system and front and rear parking sensors make it easy to navigate a tight spot.

This is a joy to park. It’s so easy.

The XC40 has a long safety features list but a standout is the Volvo designed 'Side Impact Protection System' (SIPS) that reinforces the car's steel framework at the sides and disperses energy in a side collision.

Other standard features include full LED external lights, daytime running lights, adaptive cruise control, rear cross-traffic alert, blind-spot monitoring, driver attention alert, forward collision warning, lane departure alert, lane keeping aid, intelligent seatbelt reminders, traffic sign recognition, 360-degree camera system, front and rear parking sensors.

The XC40 has a maximum five-star ANCAP safety rating from testing done in 2018. It has seven airbags, including a driver's knee bag and features high individual scoring for adult and child occupant protection at 97 per cent and 84 per cent, respectively. 

The XC40 has AEB with car, pedestrian and cyclist detection and is operational from 4.0-210km/h. It's usual to see that top speed sit closer to 180km/h, so that's very good.

A cool feature for any parents out there is the second key which you can program to limit stereo volume levels and set a maximum speed allowance. It's even coloured bright orange so there are no chances of a sneaky switcheroo!

There are ISOFIX child-seat mounts on the rear outboard seats and three top-tether anchor points for any families out there but two seats will fit best.

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.

The ongoing costs are pretty solid with the XC40 coming with a usual five-year/ unlimited warranty term but the drive battery is covered for eight years/160,000km.

You can pre-purchase a five-year/150,000km servicing program for a flat $3000 or an average of $600 per service, which is a bit expensive for the class. Servicing intervals are great at every two-years or 30,000km, whichever occurs first.

You get complimentary roadside assistance for five-years through Assist Australia and if you meet certain criteria, you can extend that by a further three years, which is handy.