What's the difference?
Make no mistake, you are looking at the biggest challenge the all-conquering Tesla Model Y has ever faced in Australia.
It’s the Kia EV5, a mid-size, all-electric SUV the Korean brand thinks will be its best-selling EV by some margin.
Oh, and it’s cheaper than the Tesla, by more than a little bit.
So, is this the electric SUV that might finally put an end to Tesla’s winning run in Australia?
Unveiled globally in 2022 before arriving here in late 2024 as a plug-in hybrid GT, the Peugeot 408 has been a niche player for the long-established French brand with less than 100 examples finding homes here last year.
But 2025 marked the transition to a new ‘plug-less’ mild-hybrid powertrain for the mid-size crossover-style SUV with the hope it may take a bigger swing at segment heavyweights.
We spent a week with the current 408 GT Premium Hybrid to see if its efficiency-focused petrol-electric set-up has what it takes to win a spot on your upscale five-seat SUV shopping list.
The size is right, the price is right and the drive is right – three things that make the Kia EV5 a pretty formidable foe, and the kind of vehicle that might finally be able to break through the wall of the temple of Tesla in Australia.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
The Peugeot 408 GT Hybrid delivers heaps of standard equipment and safety tech for what is now a much more competitive price. It’s also super fuel-efficient, which is right for these turbulent times, offers thoughtful practicality and the wagon-fastback-crossover-SUV look is striking. The price paid for miserly economy is a peaky small-engine powertrain and the ownership promise isn’t exactly class-leading. That said, it deserves consideration in its new, even more competitive under $60K mid-size SUV segment.
If you’re familiar with any of Kia’s EV designs, and specifically the EV9, you’ll already know the Kia EV5, which looks a lot like a shrunken version of the company’s biggest electric 4WD.
But this one looks a bit smaller, a bit more familiar looking, and maybe a bit more accessible than the hyper-modern EV9.
Honestly, it looks like a contemporary, mid-size SUV that could be powered by anything.
There are a couple of EV5 design elements I really like. The first is the combination of hard edges and subtle curves, which combine really well. I also love the lighting treatment up front, which gives the EV5 a bold and unique light signature, especially at night.
Inside, it’s another story of familiarity, with a clean, high-tech cabin and Kia’s common twin-screen set-up. Actually, it’s more a triple screen, with two 12.3-inch screens, and a 5.0-inch climate monitor between them.
The materials are all nice, and they look great, but they don’t exactly melt under the touch, and that gives the EV5’s cabin a hard edge I don’t love.
I do, however, love the inclusion of some physical buttons, so you’re not pawing through the screen to access every in-car function.
And one final design quirk. I know it looks like it has an old-school bench front seat, but you can’t use it as a third seat in front. Kia says it’s just a design flourish. But it is also somewhere safe to pop your phone or other small valuables to stop them sliding about when you're on the road.
Peugeot Design Director Matthias Hossann has been guiding the brand’s look and feel since 2020 and the result is a recognisable approach across the range with enough flexibility to give each model its own personality.
Recurring themes include the dramatic, fan-like grille with body-colour elements, narrow angled LED daytime running lights (DRLs) slicing through the outer edges of the nose and sinister tapered headlights set into the front corners.
The rear end maintains the visual drama with a stacked, angular treatment sectioning off the ‘Claw Effect’ LED tail-lights (the Peugeot brand mark is a Lion), chamfered mid-section and chunky bumper.
And among what increasingly feels like a mass of same-same newcomers the 408’s sloping turret and high, wide haunches give the car a distinctively sporty fastback look.
The interior is classy and clean although the almost uniformly grey colour palette is unrelenting.
The two-tier dash adds visual interest and a combination of sweeping curves and clean, straight lines around the cabin lift the tone. Nappa leather trim with the ribbed seat centre panels using perforated hide also looks classy.
But then we come to the ‘iCockpit’ instrument display and steering wheel combination. It’s based on the idea that reducing the size of the steering wheel and lowering its position while flattening its top and raising the location of the instrument binnacle is a better solution than the traditional look-through-the-steering wheel approach.
It doesn’t work for everyone and it doesn’t work for me. As noted in previous Peugeot reviews, after more than a decade in existence various members of the CarsGuide editorial staff continue to struggle with the arrangement, while others love it.
For me, the wheel feels too low, yet the top of it obscures the lower part of the instrument panel. While it may work well for others I see it as the answer to a question no one was asking.
At 4615mm in length, 1875mm in width, 1715mm in height, and with a wheelbase of 2750mm, the Kia EV5 is roughly the same size as a Tesla Model Y, so if you’re ever sat in the back of the Tesla, you’ll have a fair idea of what to expect here.
Sitting behind my own 175cm driving position, I found I had a heap of knee room, more than enough headroom, and I reckon you could fit three adults across the back seat pretty easily, too.
There are a couple of design flourishes I really like, too. The pull-down divider that separates the backseat is home to two cupholders, which isn’t unusual, but what is new to me is the unique positioning of the USB charge ports, which are in the middle-back of the front seats, right above the storage pocket, so you have somewhere to pop your phone and cable when you're charging.
There is also a deep storage draw between the two front seats. It’s just for extra storage in the Air and Earth, but in the GT-Line it’s heated and cooled, which means hot pies or cold drinks when you’re on the move.
The EV5 might be an all-electric vehicle, but it’s still a mid-size SUV, which means there are certain standards it has to hit to be taken seriously, and one of those is boot space.
Up front there’s 67 litres of space in the fruit, or frunk, while the boot holds 513L with the rear seats in place – that number obviously growing as you begin folding them flat.
It is also a hugely customisable space. There’s heaps of under-floor storage below the removable panels. There’s also vehicle-to-load capability, which takes the form of a standard power point in the boot that can use the vehicle’s battery to power pretty much whatever you want.
Finally, there are adjustable luggage hooks, so you can carry bigger or smaller bags as you wish.
At close to 4.7m long, around 1.9m wide and a bit less than 1.5m tall with a 2790mm wheelbase, the 408 sits in the middle of the typical mid-size five-seater footprint.
Ample room in the front, although the lower section of the two-tier dash protrudes a fair way towards the driver and front passenger and the centre console is broad so it feels snug rather than airy.
Storage includes generous door bins with room for larger bottles, a lidded (and illuminated) bin between the seats that doubles as a centre armrest, two cupholders in the console with an oddments tray ahead of them and a decent glove box with an extra pocket built into the lid.
Switching to the rear, sitting behind the driver’s seat set for my 183cm position, there’s loads of leg- and headroom and enough width for three adults when required and more than enough for a trio of up to mid-teenage kids. Centre rear is less of a short-straw position, too, thanks to a relatively low and flat central tunnel.
The lack of a fold-down rear centre armrest is a miss mainly because it means there are no cupholders in the rear. But there are decent door bins with a space for smaller bottles, netted map pockets on the front seatbacks and a storage cubby at the back of the front centre console.
Speaking of which, individual air vents in the back of that console are a welcome addition.
The boot is large for the class at 508 litres (VDA) with the rear seat upright and 1583 litres with the 60/40 split-folding backrest folded down. The power tailgate (with foot sensor and pedestrian detection) also makes life easier.
Other thoughtful touches include four load tie-down anchors, a netted pocket on the right-hand side, elasticised straps on the left-hand side, specific lighting and a pair of bag hooks.
Power and connectivity options include two USB-C sockets, a 12-volt outlet and a wireless phone charging pad in the front, another two USB-Cs in the back and a second 12V plug in the boot. So no problems with charging capacity for phones and other devices.
Maximum braked trailer towing capacity is a useful 1300kg (750kg unbraked) but we have to put a big black mark against provision of a repair/inflator kit rather than a physical spare. Not good enough for the Aussie market.
The cheapest EV5, the Air, arrives in two guises, Standard Range or Long Range, and the former is something of a bargain.
It’s the only EV5 to get included on-road costs, and Kia is asking $56,770, on the road. That puts it well below the Tesla Model Y. As of right now, the single-motor Tesla is $60,868, on the road, in NSW.
Next is the Air Long Range, which lists at $61,170, before on-road costs. The EV5 Earth occupies the middle rung, at $64,770, before on-roads, while the yet-to-arrive flagship, the GT-Line, is a considerable $71,770, before on-road costs.
Air models get 18-inch alloys, LED lighting all around, roof racks and power mirrors, while inside there are cloth and synthetic leather seats, with a massage function for the driver, along with a synthetic leather steering wheel and LED interior lighting.
Tech is covered by twin 12.3-inch screens, with a smaller 5.0-inch climate screen sandwiched between them, and there’s in-built nav, a six-speaker stereo and Apple CarPlay and Android Auto.
The Earth then adds 19-inch alloys, gloss black exterior design flourishes and privacy glass, while inside, the seats are now entirely synthetic leather. You also get a second V2L connection, as well as a powered tailgate.
Finally, the GT-Line gets pretty much everything Kia could throw at it, including 20-inch alloys, auto-flush door handles, a panoramic sunroof, two-tone seats which are now billed as offering "premium relaxation", wireless phone charging, fingerprint recognition, a heated steering wheel and an augmented-reality head-up display.
The previous plug-in version of the current 408 Hybrid was a 1.6-litre, turbo-petrol, four-cylinder paired with a relatively large electric motor and cost-of-entry sat at $67,990, before on-road costs.
A shift to this car’s mild-hybrid powertrain, built around a 1.2-litre, turbo-petrol, three-cylinder engine matched up with an appreciably smaller battery and electric motor coincided with a 15 per cent ($10,000) price reduction to $57,990, BOC.
Convenience or consequence? Either way, it’s opened up a new competitive set with the focus shifting from the likes of the Lexus NX, Mazda CX-60 PHEV and Volvo XC60 to a fresh batch of sub-$60K rivals.
Think Honda CR-V e:HEV RS ($59,900, drive-away), Hyundai Tucson AWD 1.6 Hybrid Premium ($58,350, BOC), Kia Sportage GT-Line HEV FWD ($57,370, BOC), Nissan X-Trail Ti e-Power 5 seat AWD ($58,215, BOC), Subaru Forester AWD Hybrid Touring ($55,990, BOC) and the Toyota RAV4 XSE Hybrid AWD ($59,015, BOC).
Suddenly the Peugeot’s included features list sits in a new context and aside from the performance and safety tech we’ll get to shortly, standard equipment highlights include dual-zone climate control air, full-grain Nappa leather seat trim, a leather-trimmed (heated) steering wheel, Alcantara door trim, 3D satellite navigation and 10-speaker 690-watt Focal audio (with digital radio) as well as wireless Android Auto and Apple CarPlay.
Then there’s power-adjustable driver (eight-way) and front passenger (six-way) seats that are also heated with a ‘multi-point’ massage function, keyless entry and start, a 10-inch digital 3D instrument panel, a 10-inch multimedia touchscreen, auto LED matrix headlights, eight-colour ambient lighting, chrome trimmed pedals, a power tailgate, heated power-folding exterior mirrors, a panoramic glass sunroof, 19-inch alloy wheels, auto rain-sensing wipers and more.
Then you can add over-the-air updates, access to remote services via the ‘MyPeugeot’ app and ‘Ok Peugeot’ voice recognition.
That’s an impressive basket of fruit for an under-$60,000 car.
The entry-level EV5 Air is available in Standard Range or Long Range guises, both powered by a single front-mounted electric motor, producing 160kW and 310Nm.
The Standard Range will clip 0-100km/h in 8.5 seconds, while the extra weight of the bigger battery slows down the sprint in the Long Range, taking around 8.9 seconds.
The Earth is a twin-motor AWD offering, with a motor at each axle, lifting outputs to 230kW and 480Nm, dropping the sprint to a brisk-feeling 6.1 seconds. The incoming GT-Line gets the same powertrain.
The Peugeot 408 Hybrid is powered by a 1.2-litre, turbo-petrol, three-cylinder engine producing 100kW at 5500rpm and 230Nm at 1750rpm.
This compact, all-alloy, direct-injection unit works in concert with a single 15.6kW/51Nm 48-volt electric motor integrated into the six-speed dual-clutch auto transmission and energised by a 0.9kWh lithium-ion battery.
Drive goes to the front wheels only and Peugeot claims a 0-100kmh sprint time of 9.4 seconds.
The Air Standard Range gets a 64.2 kWh lithium iron phosphate battery, weighing in at a hefty 428kg, which delivers a claimed driving range of 400km. The Air Long Range, the Earth and the incoming GT-Line all share the same 88.1kWh battery, upping the range to 555km, 500km and 470km, respectively.
So, if driving range is at the very top of your must-have list, the Air Long Range is the car for you.
All cars can take 7.0kW home AC charging, while the dual-motor versions are set up for 11kW AC charging. Fast charging. When it comes to fast charging, all models can plug into a 350kW charger, taking them from 10 percent to 80 per cent in less than 40minutes.
The 408 Hybrid’s official fuel consumption figure for the combined (urban/extra-urban) cycle is 4.5L/100km, the 1.2L turbo triple emitting 102g/km of CO2 in the process.
And it’s important to point out those official (ADR 81/02) numbers for the 408’s consumption and emissions are better than any of the direct competitors we’ve called out in the ‘Price & Features’ section above.
Over a week of mainly city and suburban running with some freeway sections thrown in, we recorded an on-test average of 6.0L/100km. Impressive for a mid-size crossover weighing in at a bit over 1.4 tonnes.
Brim the 52-litre tank with minimum 95 RON premium fuel (ethanol blends not recommended) and using our real-world figure you can expect a handy driving range in excess of 860km.
First things first – I spend most of my time behind the wheel of the EV5 Earth, which though it shares its dual-motor powertrain with the GT-Line, is actually the fastest of the lot owing to the extra weight of Kia's flagship.
That means zero to 100km/h in just over six seconds, and trust me when I say this, that is more than fast enough. I know you read about EVs knocking off the sprint to 100km/h in supercar-besting times, but you don't need that sort of crazy acceleration in a family-focused mid-size SUV.
Actually, forget needing, you don't want it. The EV5 feels more than punchy enough, without shaving years off your life every time you plant your foot.
Fit for purpose, then, which is exactly how I'd describe the rest of the EV5's very good drive experience. Kia's Australian ride and handling wizards have once again had their way with the EV5, and the result is an EV that handles most everything Australian road surfaces can throw it at it with ease.
Surprisingly, it's maybe not quite as dynamically sharp as the bigger EV9, but it's always comfortable, without feeling floaty or disconnected, and it will happily grip its way around tighter corners without tipping from side to side, either.
There are a couple of small quirks, though. The first is the steering, which is definitely responsive and confidence inspiring, but it also has a kind of artificial weight or heaviness at times that feels a bit disconnected from what's happening beneath the tyres. And the cabin can be a little noisy through wind, too.
But these are small beans, really. The EV5 is comfortable and capable, and without the harsh ride or too-sharp steering that can be found in some of its rivals.
We drove it for hours across all sorts of road surfaces, and in all sorts of conditions, and found very, very little to complain about.
Even with the assistance of an electric motor in the transmission and a turbo on the engine, a 1.2-litre, petrol three-cylinder powering a more than 1.4-tonne five-seat car is always going to be an interesting equation.
And in practice, although the small triple’s peak torque (230Nm) is available from just 1750rpm it lacks the smoothness of larger capacity mild- and full-hybrid combinations. Especially at slower speeds, the powertrain feels relatively edgy and agitated.
Outright acceleration is fine (claimed 0-100km/h acceleration is 9.4sec) with decent mid-range pulling power for confident overtaking or decisive lane changing (a 15.6kW/51Nm boost from the motor playing its part) and the dual-clutch auto is a more polished example of what can be a fractious device.
But engineering and tuning for maximum fuel-efficiency has an impact on driveability. For example, we noticed the air-conditioning system’s output softened at standstill, which led to some mild window fogging in stop-start traffic on a particularly humid morning. Haven’t seen that for a while.
The strut front, torsion beam rear suspension delivers a compliant ride and responsive handling in classic Peugeot fashion. The steering in particular points accurately and provides good road feel.
We’ve covered the intricacies of the i-Cockpit instrument and steering wheel configuration in the Design section as its shortcomings (for me, anyway) are more ergonomic than dynamic.
The car is relatively quiet, thanks in part to sound-dampening acoustic glass and the Michelin e.Primacy tyres (205/55) which also grip persistently if you decide to slice through your favourite set of corners. Push the engine harder and it’s revvy note and exhaust rasp will start to make their presence felt.
Regenerative braking is helpful and the physical brakes (ventilated discs and the front and solid rotors at the rear) are nice and progressive.
The front seats are firmer than the Peugeot norm but remain comfy enough and they provide enough side support to keep you well located.
Despite the swoopy fastback design, all-around vision is surprisingly good and an overall length under 4.7m, an acceptable 11.2m turning circle, a clear reversing camera and a 360-degree camera view make parking straightforward.
Every EV5 gets a comprehensive safety offering, including 'Advanced AEB' that includes junction crossing, lane oncoming and lane changing alerts. There’s rear-cross-traffic alert, semi-autonomous highway cruising and a whole heap more.
If you want a blind-spot view monitor, surround-view monitor or remote park assist, you’ll need to spring for the GT-Line.
The EV5 hasn’t been crash-tested yet, but Kia will be shooting for the maximum five-star ANCAP rating.
The 408 has a maximum five-star ANCAP rating from assessment in 2022 with active crash avoidance tech including Auto emergency braking (AEB) with pedestrian and cyclist detection, junction assist and backover detection, adaptive cruise (with stop & go), lane departure warning and lane keep assist, blind spot monitoring, traffic sign recognition, a 360-degree camera view, rear cross-traffic alert, forward collision warning, driver fatigue monitoring and tyre pressure monitoring as well as front and rear parking sensors.
If a crash is unavoidable there are six airbags onboard (front, front side and side curtain) but a front centre bag is notable for its absence.
On the upside, an active bonnet helps protect impacted pedestrians from striking hard engine parts under the bonnet and multi-collision brake minimises the chances of subsequent impact after an initial crash.
For child seats there are three top tether points across the second row with ISOFIX anchors in the outer positions.
The EV5 is covered by Kia’s seven-year, unlimited-kilometre warranty, and you can prepay your servicing costs, too.
Three years will set you back $980, five years is $1535 and the full seven years will set you back $2431 ($347 per workshop visit), which is category competitive.
Peugeot covers the 408 with a five-year/unlimited kilometre warranty, which is perilously close to sub-par in 2026 with an increasing number of brands at seven, eight and up to 10 years conditional. The battery warranty at eight years/160,000km matches the market.
Roadside assistance is included for five years, service is recommended every 12 months/15,000km and pre-paid servicing is offered across three-, four- or five-year plans, with the latter at $2070.
That’s a not insubstantial average of $414 per workshop visit, which Peugeot says will save you $893 compared to pay-as-you-go over the five years.
For reference, a Toyota RAV Hybrid service for any of the first five years is $260, although pricing steps up after that period.
Peugeot has a well established network of 31 dealers mainly covering major cities and key rural areas, primarily on the east coast. Currently, no presence in Tassie or the Northern Territory, while Perth and Adelaide are the only representation in WA and SA.