BMW IX2 vs Volkswagen Touareg

What's the difference?

The second-generation BMW X2 is leagues better than the car it replaces. It now sits nicely in BMW's line-up and offers genuinely tempting electric variants.

This isn't an affordable car by any means but next to rivals from Mercedes-Benz and Volvo, the well-equipped iX2 xDrive30 feels a complete package.

Similarly, the entry-level xDrive20i petrol is a very compelling choice with a comfortable ride and sporty drive.

We'd skip the contrived M35i unless your heart is set on going quickly in a straight line. With the thinking cap on, it's also hard to make a case for the X2 over the objectively better (and more affordable) X1. Then there's the more spacious, powerful, efficient and cheaper Tesla Model Y.

That's not really the point of this car, though. It'll never sell in as many numbers as the X1. Those who love its fastback styling will be pleasantly surprised by the new X2. It does what it says on the tin, marrying the BMW badge with a sporty drive and daring style.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

A car as impressive as it is frustrating, the Touareg R is a vehicle for a very specific buyer. Someone whose daily commute consists of limited distances, someone who can always charge at home overnight and someone who appreciates the subtlety of the performance and luxury the Touareg brings.

For everyone else - there are better options. Performance-focused PHEVs can be tricky to charge and extract the full benefit from, and at this price you have access to some serious performance-oriented combustion SUVs or the choice of going fully electric.

While this R-badged VW might be the most mind-bending of the lot then, it also has the most 'specific' appeal.

The entire point of the BMW X2 is to grab attention and promote conversation. The X2's new-found success comes mainly from bigger proportions - it's grown 194mm over its predecessor and 54mm longer than X1.

It's 64mm taller and sits on tracks that have been pumped by 21mm. All the changes are built into the latest iteration of BMW/Mini's transverse UKL2 platform.

The result is presence and swagger on the road for the X2. Even the base car grabs attention, while electric iX2 variants get unique closed-off grilles and a different front bumper treatment.

It's the M35i thats most eye-catching, though. A jutting lower spoiler and butch stance highlighted by horizontal kidney grille slats and quad exhaust tips. Our test car was finished with massive (and optional) 21-inch alloy wheels.

As successful as the whole package is, there are fussy elements: the boxy rear end, awkward spoiler and peculiar tail-lights. From some very specific angles there's even a hint of SsangYong Actyon to the proportions.

The iX2 and X2 aren't made to appease everyone, though, so you don't have to love it.

Inside is a different story with elegant simplicity the X2's remit. It's much like an X1 in layout with crisply integrated curved screens running the latest iDrive 'OS9'.

Apple CarPlay was faultless (wireless Android Auto is also included) yet connected navigation makes it easy to rely on BMW's in-house features.

You get 90 days free use of BMW Digital Premium, which includes the ability to download games and apps as well as more advanced connected navigation. After the trial, you'll need to pay monthly ($9.99) or annually ($109) for the services.

The X2's door pulls and handles are particularly nice to interact with, blending visual lightness with reassuring sturdiness.

The Touareg, as always, screams big Volkswagen. It’s more subtle than the Porsche Cayenne and Audi Q7 with which it shares its underpinnings, yet looks as slick as either up close.

It’s defined in its face by a massive black grille, integrated light fittings, and as usual with Volkswagen, some pretty subtle highlights and tail-lights in attractive LED patterns.

The wheels sell the vibe of an R. They’re enormous and gloss black, matching the theme and style of its smaller siblings, black highlight trims replace chrome or body colour bits to set it apart from the rest of the range.

It doesn’t look quite as modern as something like Kia’s Sorento or EV9, and it doesn’t look as elegant as the Volvo XC90 or as defined as the Land Rover Defender, all in the same price bracket.

This helps the Touareg maintain a certain mainstream appeal, and a sporty edge, without being too egregious.

Still, some might want some more overt visual flourish to indicate they’re driving a vehicle which is capable of sprinting to 100km/h from a standstill in 5.1 seconds.

Perhaps I’m in a different camp, one which appreciates the ‘sleeper’ nature of a giant family SUV capable of incredible driving feats when pushed.

Inside is always a pleasant surprise in a Touareg. While it might be the most affordable of the giant SUVs on this platform, it maintains the air of luxury and plush nature of its more expensive counterparts from Audi and Porsche.

You’re met by nicely trimmed leather seats and a chunky VW R steering wheel, massive screens and lavish amounts of padded leather surfaces everywhere. It feels every bit the luxury SUV the price indicates, in case you were worried you’d be getting something which feels more like a T-Roc than an Audi. For what it’s worth I quite like all the Volkswagen switchgear.

Despite the X2 living dangerously in the style department, it hasn't sacrificed cabin practicality – at least in the front seat.

A vertical wireless charging pad holds a phone in like a kid on a rollercoaster (important, as you'll read later, because the X2 range has some serious back-road talent) with nearby USB-C plugs for additional charge.

The door bins easily fit a one-litre camping bottle, there's good storage for small bags beneath the floating armrest (which has a very small cubby for keys or mints) and a sizeable glove box.

As you'd expect from a German-built BMW (all X2s hail from Regensburg) build quality is excellent... save for the flimsy indicator stalks. The latest oblong engage with a limp click that's a far cry from the damped thump of older BMWs, such as the E90 3 Series.

The cabin materials are pleasing to touch with quality stitching and soft padding on heavy touch areas. Geometrically patterned trim inserts add some cabin flare and look sturdy as well. 

The X2 and iX2's back seat is not as good as the BMW X1's – none of the proverbial thanks, Sherlock.

Under the sloping roof headroom will be acceptable for 175cm adults and knee room is passable. Despite sharing underpinnings between electric and combustion variants there's minimal spatial compromise.

There are ISOFIX ports and top tether anchors for all seating positions. Vents are mounted in the centre console and there is a fold-out armrest with cup holders. Doors open relatively wide for a 'coupe' as well. 

Of some concern is the X2's narrow bench; the body-work sculpted appearance of the coupe tail results in lots of shoulder room intrusion. To put it in simple terms, it's best capped at four occupants.

The boot is at least very generous, offering between 525L (iX2) and 560L (X2) of VDA space.

The load bay is long and there is no load lip to lift items over. Seats fold in a 40:20:40 configuration, growing capacity up to 1400L.

Neither the X2 or iX2 is fitted with a spare tyre, so its mobility kits for X2 owners.

It’s a big SUV with big interior dimensions. It feels spacious and wide on the inside with a large centre console area for spreading out and a highly adjustable driver’s seat.

The seats are plush and comfortable, and visibility is pretty solid out of the cabin. Again, you're greeted by excellent touchpoints, from the steering wheel to the door cards and there’s even lashings of padded leather trim down the sides of the centre console for your knee to rest on.

Volkswagen’s screens are usually some of the best in the business and that continues here. They’re bright, sharp and served up with attractive and mostly functional and easy-to-navigate software.

The hardware behind them is also enough to keep them lightning fast when reacting to inputs, with satisfyingly smooth animations, too.

The one thing I like a bit less is how a few of the menus can be confounding. It took me a while to figure out I needed to set the default battery level higher than its current charge to get the engine to stay on, and I’d also love a button to simply switch between EV and hybrid mode.

In fact, the lack of buttons is one of the major issues in this car. Sure, the enormous centre screen is an impressive feature, syncing up with the dash design nicely, but you’re also forced to negotiate with touch elements for key climate functions. No matter how fast or slick the software is, there’s no compensating for a toggle or dial you can easily reach while you’re focused on the road.

For what it’s worth, the wireless Apple CarPlay worked seamlessly with the car in my time with it (and looked good too) while the wireless charger is rubberised and in a good location so your phone will be able to at least maintain its state of charge on the go.

Storage is plentiful up front, with large pockets with integrated bottle holders in each door, a large dual cupholder set-up in the centre console with variable edges and a large armrest console box.

In the back seat I have enough room for myself behind my own driving position at 182cm tall. It’s plenty wide and tall, but I don’t feel as though I had an enormous amount of legroom considering the size of the vehicle.

Still, the width will give you space for three adults across in relative comfort. Yes, there’s a large raise in the floor in the centre position to accommodate the all-wheel drive hardware underneath, but the width of the floor should allow a centre passenger to put their feet on either side.

Big door openings and the wide cabin make for easy child seat fitting, and there's even built-in window shades alongside two rear climate zones with physical controls, large bottle holders in the doors and a drop-down armrest, with some flimsy nets on the backs of the front seats to round things out.

Boot space is allegedly enormous at a quoted 810 litres, but the shape of it is less than ideal. Sure it’s nice and wide and oblong shaped at the base, but the rake of the boot quickly eats into the amount of height available, making it tricky to fit larger objects.

The space accommodated our CarsGuide three-piece luggage set with ease, but it didn’t leave much room to spare. It doesn’t feel like it’s double the 400 litre space typical of a one size-down SUV. 

There’s also a needlessly complex two-piece shelf, which lifts with the tailgate, but the boot wouldn’t completely close with the luggage set present unless you removed it. To the Touareg’s credit, the second row seats hinge forward significantly to expand space by a fair bit.

Under the floor there’s only a repair kit, as the huge PHEV battery takes up the rest of the space. A decidedly less than ideal flat tyre option.

Is the Touareg R good value? Seems like a silly question doesn’t it?

One school of thought says, of course it isn’t. Nobody needs a giant $129,990 (before on-road costs) SUV which is this fast. What the halo Touareg variant has always offered is excess with a modest exterior wrapper.

On the other hand, the Touareg R is great value when you consider you’re getting much the same hardware as a Porsche Cayenne S E-Hybrid ($188,600) with a Volkswagen badge.

In its size and price-bracket, the Touareg R directly rivals the Land Rover Defender 110 PHEV ($126,184), Lexus RX HEV ($127,434), Range Rover Velar PHEV ($131,536) and Volvo XC90 Ultra T8 PHEV ($128,390).

I see two problems with this. Firstly, all of those price rivals are premium brands, and secondly, at the circa-$130K price-tag there’s also the awkward reality you could be choosing one of a few very appealing fully-electric options, from the Kia EV9 GT-Line ($121,000), to the Polestar 3 ($131,054), Mercedes-Benz EQE ($134,900) and BMW iX ($136,900).

So, it’s great value from one perspective, but not so much from a few others. Then again, this is the biggest, baddest Volkswagen you can currently buy, so whether you’re in the market for an R-badged car or a PHEV of this size, you’re likely familiar with a six-figure price-tag.

Do you at least score good equipment for the money? Aside from all the complex drivetrain hardware, this VW is an impressive place to be, with extensive plush leather interior trim in the seats and doors, power adjust for the front two positions with heating and ventilation, a 12.0-inch digital dash with Volkswagen’s slick-as-ever digital cockpit software, a head-up display, a massive 15.0-inch multimedia touchscreen (with wireless Apple CarPlay and Android Auto), matching wireless phone charger and quad-zone climate control.

Outside, there’s the brand’s signature matrix LED headlights, massive gloss black 22-inch alloy wheels, enormous ventilated disc brakes and a sports exhaust with air suspension hiding below.

It’s a lot of kit for a mainstream SUV, and performance, which we’ll talk about later, is impressive (with a few caveats). 

BMW's internal combustion engines are responsive and slick in the X2, while the iX2's well-calibrated electric powertrains deliver pleasingly instant pick-up.

The range kicks off with a heavily revised version of BMW's all-aluminium 'B48' 2.0-litre four-cylinder in xDrive20i tune. It produces 150kW and 300Nm, enough to hit 100km/h in 7.4 seconds from rest.

Like the xDrive20i, the M35i employs a seven-speed dual-clutch transmission driving all four wheels.

Australian M35is are more powerful than European models, developing 233kW and 400Nm for a 0-100km/h sprint in 5.4 seconds. A freer-flowing exhaust is augmented with active sounds for a fruity (if synthetic) note.

BMW offers a pair of electric powertrains with the 150kW front-drive eDrive20 and twin-motor 230kW/494Nm iX2 xDrive30.

We only sampled the more powerful one which features Hans Zimmer-composed sound scapes and an impressive turn of pace, hitting 100km/h in 5.6 seconds (claimed).

It is limited to a 180km/h top speed which may pose an issue on German Autobahns but is no trouble in Australia.

The Touareg offers a performance-focused plug-in hybrid (PHEV) drivetrain. Usually this means a little turbo four-cylinder engine and an electric motor, but instead this big SUV offers a 100kW electric motor and a 3.0-litre V6 turbo-petrol engine which combine for a whomping “total system power” of 340kW/700Nm.

This allows a 0-100km/h sprint time of just 5.1 seconds. Power is sent to all four wheels via an eight-speed automatic transmission and Torsen central differential. Up to 70 per cent of power can be sent to the front wheels, with up to 80 per cent of power going to the rear.

It is capable of driving at up to 135km/h under electric power alone, with the V6 kicking in beyond that speed.

It’s a rare set-up for two reasons. Firstly, it’s a plug in which maintains a large six-cylinder engine, and it runs even electric power through the transmission to all four wheels.

Some PHEV rivals, for example, use front combustion-drive only with no mechanical connection between the engine and the rear axle, which is driven purely electrically.

When it comes to towing specs, the Touareg offers solid official figures of 750kg for an unbraked trailer and 3500kg braked, although the maximum towball download is 220kg.

Rated at 7.5L/100km (xDrive20i) and 7.8L/100km (M35i), after a 130km jaunt, the M35i's trip computer showed 9.8L/100km.

Premium 95 RON or higher is required and the fuel tank holds 54 litres.

For the iX2 xDrive30, consumption was above the WLTP rating. We saw 18.2kWh/100km on our hilly country route which would equate to 356km from a charge of the 64.8kWh lithium-ion battery battery.

The 417km WLTP driving range figure is at 15.5kWh/100km, we'd expect to get closer to the rated figures in more typical urban and suburban use cases.

Regenerative braking was quite pronounced (there are four setting: Adaptive, Low, Moderate and High) and on a descent into Hobart the xDrive30 managed to boost charge levels from 27 to 29 per cent.

As for regular charging, the iX2 will take DC electricity at 130kW, meaning 29 minutes from 10 to 80 per cent. That interval allows you to roam around 290km between charging stops on a long run.

One great aspect of both iX2 variants are their fast 22kW AC charging capability. It means the iX2 can go from flat-full in under four hours, rather than eight hours on an 11kW wallbox.

Though most owners won't have access to three-phase electricity, this suits public charging – such as at shopping centres or destinations – very well.

Another boon is BMW's inclusion of both Mode 2 and Mode 3 charging cables and a 12-month ChargeFox subscription.

Home wallbox installation isn't included in the deal (Lexus offers this with its UX300e) though BMW does offer the service at a cost for those who want it.

Like other plug-in hybrids, the official combined (urban/extra-urban) cycle fuel efficiency number for the Touareg R is an eyebrow-raisingly low figure which you know won’t be achievable in the real world, but is probably technically feasible in lab-style conditions. 

In this case, it’s 3.3L/100km. When I picked up the car it had a low charge level, and the next day I was able to top it up to just 50 per cent because I don’t have a power point in my garage, and the achingly slow 3.6kW maximum AC charging speed is severely limiting if you need to rely on the public network, as the 17.9kWh battery is relatively large.

This should bring you to the obvious conclusion the Touareg R is not a good hybrid if you can’t charge at home, as you’ll never extract the full benefit of the electric set-up. Perhaps adding evidence to this is its official energy consumption which comes in at a painful 21.1kWh/100km.

As for hydrocarbons, in my week of driving (in which I tried to pick up charge wherever I could) I saw over 14L/100km. Makes sense for a heavy petrol V6 SUV. I’d say you’re likely to see a figure like this on a longer journey or if you drive it with enthusiasm as the R badge encourages. To add additional pain, it requires 98RON premium unleaded fuel.

With a realistic maximum pure-electric range of closer to 40km compared to the official WLTP-rated 51km (more on this in the driving section of the review), the R is also best for people whose daily commute is relatively short.

I can’t imagine, for example, the best benefit of this car will be extracted from someone who lives in the urban sprawl and commutes to the city every day with distances in excess of 50km for a return journey.

Additionally, the hybrid mode is very EV-heavy, draining the battery relatively quickly unless you manually put it in preservation mode.

For nerds who could be bothered, this mode is potentially a nifty feature allowing retention of some EV range at the end of a long freeway journey. But it takes a certain buyer to even be bothered with this.

Can you see why plug-less hybrids are the Australian new car buyer’s electrification configuration of choice?

The previous-generation X2 always felt a bit more Audi or Volkswagen than BMW in the way it went down a road.

This latest iteration has a secure, dynamic balance more in-keeping with the blue-and-white roundel and is far more impressive than its predecessor.

We spent our first leg in the performance-oriented M35i. The punchy engine, front-biased AWD and slick transmission felt just right in the sporty small SUV.

It sits 15mm lower than the other variants on differently tuned springs and adaptive dampers.

The M35i holds onto the tarmac like a limpet with minimal body roll at very high limits partly thanks to the efficiency-oriented 245/35R21 Continental Eco Contact 6 Q tyres.

Yet this comes at the cost of adjustability. With such tight rebound damping in Sport and Sport Plus modes, the M35i's body is too tied down. Even in Comfort, the M35i hopped and fidgeted over Tasmania's broken tarmac, a trait not aided by the 21-inch alloys.

We would have preferred more build-up in the steering weight, too, given the sporting intentions. That chubby wheel rim does its best to remove any sensation of feedback, too.

BMW's iDrive is mostly fantastic except when it comes to changing drive modes, which you need to do fairly regularly in the M35i.

More than just normal – or Personal here – there's configurable Sport and Efficiency modes. There's also Digital Art and other less useful options.

Thankfully, the xDrive20 is much sweeter. Even optioned up with the 20-inch alloy wheels the ride is a lot more agreeable and well-suited to Tasmania's lumpy roads.

All the damper modes were usable with Sport providing welcome extra support without being too strict. Turning into corners felt more natural in the xDrive20 thanks to a bit more body roll which helps communicate grip levels.

The xDrive20i did feel low on grunt after the M35i and iX2 xDrive30 but that was only in a direct comparison - grunt levels were plenty once accustomed. We did miss the M35i's front limited-slip differential on loose surfaces, but it wasn't a deal breaker.

Seeing that the iX2 xDrive30's kerb weight was 325kg higher than the M35i (2020kg) set alarm bells going initially. That's a lot of extra weight for a 'small SUV' to be carrying around, and is beyond a Tesla Model Y Long Range (1979kg).

The iX2 uses the same kinematics and suspension components as the petrol cars but in completely retuned states. Encouragingly, the result is rather excellent.

You do notices the weight when pushing through patchily surfaced corners. The iX2 bobbles and hops occasionally as you approach the damper's limits, but to their credit they never gave up.

That light steering – which is frustrating in the M35i – aids to disguise the xDrive30's extra mass, too. As all X2's are front-biased AWD models, they never quite reach the dynamic heights of BMW's Cluster Architecture models.

Still, grunt is prodigious and, although it's officially slower than the M35i, the xDrive30's rolling response is predictably excellent. BMW has done a great job calibrating the regenerative braking, too.

I found Moderate was my preference, and because the brake pedal blends caliper and regenerative forces you lose precious little range from not having it jacked all the way up.

The iX2 is quiet inside, too. There's almost no wind intrusion and tyre roar is kept to a bare minimum inside, especially impressive given that the M35i sends quite some road noise into the cabin.

Returning through Hobart's outer suburbs, we notice some shortcomings. The iX2's high bonnet, low-set seating position and letterbox rear glass with protruding rear lip spoiler mean visibility is compromised. The X1 doesn't suffer from such issues.

That's the cost of visual flare and the excellent 360-degree camera and head-up display help to alleviate guesswork and keep eyes on the road.

The M35i didn't feel the most complete on the road. If you're chasing a sporty coupe statement at this kind of price, the BMW 230i coupe is a great driver's car.

Instead, you're better to spend money on either the xDrive20i or iX2 xDrive30 with some choice options and enjoy a slick coupe SUV driving experience.

Here’s where things get a bit frustrating, and your experience will vary dramatically depending on how you use this car.

One thing we can get out of the way immediately is the Touareg is deeply technically impressive when you attack a few corners. Its immediate electric thrust is capable of propelling this large object forward with eye-widening speed, and the air suspension, wide grippy tyres, Torsen centre differential and tidy steering tune conspire to make it mind-bending to carve corners in.

It’s flat, stable, and far more accurate and agile than expected. The only hint as to the sheer physics of wrangling the Touareg around bends is the tyres screaming out in agony as the suspension and all-wheel drive system work their magic to keep it all under control.

Once the electric torque pushes you out from the corner, the deep satisfying thrum of the 3.0-litre petrol V6 quickly takes over as you lurch forward on the almost fluid-feeling suspension. It’s laugh-out-loud satisfying and certainly enough to capture passengers' attention.

In this sense, the R fulfils its mission of transforming the big Touareg into a handling and acceleration hero, but despite all the cleverness it doesn’t feel as sharp or lean as the Golf R, T-Roc R or Tiguan R.

There’s still a massive battery, as well as huge complexity and weight to deal with, no matter how technically fast it is. There’s always the unsettling feeling of this amount of weight moving around, and the occasional slight delay from the transmission as it figures out what’s going on between the electric motor and big engine.

Then there are the compromises. Normally, I’m a huge fan of how plush and luxurious the Touareg feels. It’s usually such a step above its station in the VW Group, occasionally even feeling preferable to its platform relations, but the R has some issues.

For a start, the enormous 22-inch wheels and low-profile tyres ruin the day-to-day ride quality, crashing over bumps and road imperfections, despite the fact there’s also air suspension supposedly providing a buffer between you and the tarmac.

Even in the more comfort-oriented drive settings you can hear and feel every bit the moment the wheels contact a pothole or bump. Clearly, it’s tuned more toward handling than maintaining the same luxury feel as the rest of the range.

The transmission is also occasionally hesitant, either from a standing start or when switching between electric thrust and the engine. This is much better when the battery is charged up from the reserve level, as there isn’t enough charge when driving around as a hybrid to push a big, heavy (and always) all-wheel drive very far.

But hybrid driving is also frustrating, for reasons mainly related to the software. With the battery charged, the 51km of claimed driving range feels a tad ambitious. I was able to charge it to about 50 per cent (the battery is huge, at 17.9kWh, and I could only pull about 3.5kW from a local AC charging unit) and scored about 20km of driving range.

It drains quickly, even in the hybrid driving mode, as it relies on the electric motor a lot for initial take-off.

This means unless you set the battery preserve mode manually in the hybrid settings screen, it will likely run the battery dry before you’re even able to get it somewhere where it can take full advantage of the extra electric thrust.

As an electric vehicle it’s also only alright. The short time I was able to spend in full EV mode proved the battery will drain faster than advertised, and the regen is so-so for assisting in braking.

Other more performance-focused PHEVs suffer the same issue. For example, I felt largely the same way about the much-maligned four-cylinder PHEV Mercedes-AMG C63.

While hybrids like this may be impressive when conditions are ideal, they’re ultimately frustrating to use in reality. It’s a shame, because I wanted to like it more but it doesn’t quite capture the same magic of its R-badged forebears and siblings.

All of the safety kit is standard and present on the Touareg R, including autobahn-speed auto emergency braking, lane keep assist with lane departure warning, front and rear cross-traffic alert, blind spot monitoring, road sign recognition, driver fatigue detection, a surround view camera and adaptive cruise control.

The best part is these systems not only work, but they’re well calibrated so they generally don’t interfere with the core driving experience.

Additionally, the Touareg has a suite of eight airbags and maintains a maximum five-star ANCAP safety rating achieved in 2018.

Since 2022, BMW has backed all of its cars with a five-year/unlimited kilometre warranty.

You’ll need to service the iX2 ands X2 based on condition, rather than kilometres traveled. The multimedia system will prompt you when it's time to visit a workshop. 

You can pay upfront for service plans with BMW: a five-year servicing package will cost you $3171 for the petrol X2s, while the iX2 is $2186 for six years.

The standard five year, unlimited kilometre warranty features with one year of complimentary roadside assistance provided (renewed for another year with each service at an authorised dealer).

Servicing is required once every 12 months or 15,000km and the most affordable way to do it is with pre-packaged service plans bundled in with purchase. These come in at $3400 for five years (a saving of $668 over the a-la-carte program) or $2050 for the three year plan (a saving of $222).

Even in its most affordable form this makes servicing average $680 a year which is a far cry from most affordable brands, but it could be worse considering the complexity of the powertrain.