What's the difference?
MG has been one of the fastest growing brands in the Australian market in the past five years, carving a spot for itself amongst the best-selling names.
But now it’s about to take on arguably its toughest challenge yet - selling a performance car.
MG’s success until now has been built largely on value, with its affordable MG3 and ZS SUV leading the way. The arrival of the all-new, all-electric MG4 XPower means the brand will try its luck at selling cars based on performance, dynamics and an emotional connection.
It’s not the first electric hot hatch in Australia, that distinction arguably belongs to the Cupra Born. But, MG has achieved much higher sales locally than Cupra, making it the first electric hot hatch from a mainstream brand, and that’s why it has the potential to be a game changer for the market.
If the XPower succeeds it will likely reshape the hot hatch market, which until now has been dominated by long-time players and big-name brands, including the Honda Civic Type R, Hyundai i30 N, Toyota GR Corolla and Volkswagen Golf R.
It’s 2026 and over 30 years and through six generations the Subaru Outback as we knew it… is gone.
Gone is the defiantly wagon-esque crossover style that was one of the first, as well as likely the most-successful, for the boxy beast you see here.
RIP, original Subaru Outback.
But, don’t worry, folks, because, except for a couple of issues, things only get better by and large, with the big new seventh-gen model.
And, in the most important ways, the 2026 Outback is a true Subaru at heart, so let’s dive straight in!
The MG4 was a game changing electric car, resetting the price benchmark while also being a very good small car in its own right. But as we discovered when we tested the rest of the range, the MG4 is a car that gets more compelling the cheaper it is. The $38,990 MG4 Excite 51 is arguably the pick of the range given its value equation.
But that’s not to say the MG4 XPower isn’t a good car. It’s a very quick car that will play the role of daily driver and weekend fun machine well. Just not quite as well as its petrol-powered rivals.
Over 30 years and seven generations of Outback in Australia, the latest might just be the best.
It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.
The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.
We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.
That’s not bad for something this square!
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
What really stands out about the design is… that not much stands out about the design. At least in differentiating the XPower from the rest of the MG4 line-up.
There are no pumped out wheel arches or a bigger, sportier spoiler that makes it look different in the same way a GR Corolla won’t be mistaken for a regular Corolla hatch.
Instead, the XPower has the same 'Energetic Agile' silhouette and includes the same ‘Active Intake spoiler’ at the front and the ‘Twin-Aero’ rear spoiler that’s the same as the Essence models.
There are some differences though, including more pronounced styling on the sides of the doors. It doesn’t add any performance benefit but creates a slight visual difference between the models in the range.
Surprisingly, there is very little to signify that this is the sportiest XPower model, with a distinct lack of badging - inside and out. In fact, the only visual clue that this is the XPower is on the bright orange brake calipers. Or, to be more accurate, brake caliper covers.
These are just lightweight metal covers that make the MG4 braking hardware look bigger than it really is, so it’s a bit of visual trickery from the MG designers.
Historically, Subarus have majored on quirky. Kooky even.
Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.
But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.
Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.
What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.
On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.
Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.
As with the exterior, there’s not a lot to differentiate the XPower from the rest of the line-up. No bright red Civic Type R style interior treatment here. MG has opted to carry over the minimalist design that no doubt contributes to the sharp pricing.
Probably the only notable difference is the seat trim, with the XPower model getting a combination of synthetic leather and suede for a sportier look and feel. But the rest is largely the same, which detracts slightly from its hot hatch credentials.
On the plus side, the MG4 cabin is generally a well-designed interior space, which is a positive for the XPower’s hot hatch argument, as the idea behind the ‘hot hatch’ is that it can be a practical car during the week and fun on the weekends.
There’s good room for passengers and luggage, in large part thanks to the relatively slim battery design that frees up more cabin space. Front seat occupants will enjoy the space and good visibility on offer.
Small item storage is very good in the MG4, with a pair of cupholders, a large, flat lidded tray (with one USB-C and one USB-A outlet just above) and the centre console box all fitting between the front seats.
There’s also a wireless smartphone charging pad that sits halfway up the centre fascia, next to the rotary gear selector, but it’s a shallow space so your phone will almost certainly fly out as soon as you begin cornering vigorously.
However, once again highlighting the ways MG has saved money to keep costs down, the back seat accommodation isn’t anywhere near as well appointed.
While the space is adequate for a small hatch, there are no cupholders, no air-conditioning vents and no fold down armrest for those in the back. All they have access to are some pockets on the back of the front seats, including a pair of small ones high on the seat, seemingly designed to accommodate your smartphone.
In another positive for its hot hatch practicality, there are ISOFIX points on the outer rear seats, neatly covered by leather pieces for a cleaner look when you don’t have kids.
As for the boot, the XPower measures the same 363 litres with the seats up which is unchanged from the rest of the MG4 line-up.
Disappointingly, there’s no obvious place to stow the charging cable, even though it comes in a small, neat bag. This is a worryingly common trend with these early generation EVs that shows a lack of practical thinking from the designers.
The MG4 has no under-bonnet storage either, so it feels like a few wasted opportunities for what is a bespoke EV design.
Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.
The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.
The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.
But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.
That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.
A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.
But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.
If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.
The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.
Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.
Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.
While we’ll dive into performance and the headline figures of the XPower soon, there’s another number that’s arguably more impressive - the price.
The MG4 XPower is priced from $59,990 (plus on-road costs), making it only $4000 more expensive than the range-topping MG4 Essence 77.
More importantly, when compared to the likes of the $72,600 Honda Civic Type R, $68,990 Volkswagen Golf R, $64,190 Toyota GR Corolla and $57,990 Subaru WRX tS Sport the XPower is arguably one of the first EVs to achieve true price parity with its internal combustion engine rivals (although the Cupra Born starts at $59,990 so it can argue the same).
Beyond the performance upgrades we’ll detail below, that price brings a well-equipped car.
The XPower comes with 18-inch alloy wheels, LED headlights and tail-lights as well as vehicle-to-load (V2L) functionality.
It also comes with a six-speaker sound system, Bluetooth, navigation, Apple CarPlay and Android Auto, a wireless smartphone charging pad and synthetic leather and Alcantara trim.
There’s the 'MG Pilot' safety package included as standard as well, but we’ll detail that below.
The 'Hunter Green' hero paint colour is exclusive to the XPower in the MG4 range, and is reportedly inspired by an MG land speed record car the legendary Sir Stirling Moss drove in the 1950s.
Bad news first. Model-for-model, each Outback grade is now up around 10 per cent compared to the preceding, more petite and prettier version.
This means the cheapest of the five grades available, known simply as AWD (for all-wheel drive – this seems almost redundant for a non-BRZ Subaru), now kicks off from $48,990. All prices here are before on-road costs.
This includes a proper off-road mode, climate control, synthetic leather trim, a 12.1-inch multimedia touchscreen, 12.3-inch electronic driver display, wireless Apple CarPlay and Android Auto, a powered tailgate, heated front seats with powered driver’s side, chunky roof rails, 18-inch alloy wheels (with a space-saver spare – thank you, Subaru), nine airbags and comprehensive Advanced Driver Assist Systems (ADAS). Check out the safety section further down for more details.
Notes for the facelift, Subaru: Why can’t the base grade come with cloth, rather than clammy vinyl seats?
Next is the AWD Premium. From $53,490, that’s a reasonable ask given its 360-degree-view monitor, sunroof, heated steering wheel, powered front passenger seat and 12-speaker Harman Kardon audio upgrade.
The $56,990 AWD Touring includes Nappa leather, ventilated front seats, heated outboard rear seats, a wireless charger, active lane change, auto-fold mirrors with self-dipping in reverse (c’mon, this should be standard) and glossier alloys.
From here, we’re in new Wilderness territory. Two grades, AWD Wilderness from $59,690, adding more cladding upon cladding, a turbo engine, electronic dampers, 20mm extra ride height, broader 'X-Mode' off-road functionality, a wireless charger, claimed water-repellent seat trim, different fog lights, black-finish alloys and more.
But, strangely, you lose the sunroof, sat-nav, 360-degree view monitor and premium audio. Subaru demand another $3.0K to restore these in the flagship AWD Wilderness Apex from $62,690.
Still no cloth option, though. We’d like a new base AWD grade with the Wilderness mechanical gear and stance but not the extraneous cladding and visuals, and with coarse fabric upholstery, manual option and steel wheels. Maybe call it Leonie for fun.
Anyway, does new Outback represent value for money? One of its main rivals in the sparsely-populated five-seater large SUV class (most have three rows) is the Mazda CX-60. The AWD slots nicely between the slightly cheaper but very basic four-cylinder RWD Pure yet undercuts the much-sweeter six-cylinder AWD version, so we’d answer that with a yes.
Furthermore, when you tally up all that extra stuff, size and space, today’s out-stretched Outback offers comfortably more over the old model than that modest 10 per cent price hike suggests. That’s a win for buyers.
This is arguably the biggest single difference between the XPower and the rest of the MG4 line-up. Unlike the others that have a single, rear-mounted electric motor, the XPower adds a second motor on the front axle.
This has an obvious impact on the performance, boosting it from the previous best of 180kW to an impressive 320kW/600Nm.
Having motors on each axle also means the XPower is all-wheel drive, so it has little trouble transferring all that grunt to the road.
So much so that the MG4 XPower is the equal quickest hot hatch on the market (at the time of publication), taking just 3.8 seconds to run 0-100km/h; matching the Audi RS3, with its turbocharged five-cylinder engine.
Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.
The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.
Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.
Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.
Interestingly, the XPower is not fitted with the biggest battery in the MG4 range, forgoing the 77kWh version in favour of the 64kWh option.
In the ‘standard’ rear-wheel drive MG4 Excite 64 model this battery can provide up to 450km of range (on the WLTP cycle) but in the XPower that figure is reduced to 400km.
While that’s well short of the 530km offered by the long-range Essence 77 model, it’s still a respectable amount of driving range and should suit your typical hot hatch buyer, who knows performance typically comes at the expense of efficiency.
Our test drive was limited to just two days, so we didn't have the chance to live with the XPower for an extended period, but it managed to make it this reviewer’s preferred hot hatch playground on the edge of the city and back again to home with more than 50 per cent of the battery charge remaining.
This was a trip that included a lot of urban driving, some highway and then some ‘spirited’ running on the twisty road, so there’s enough range from the XPower to meet most buyers' needs.
Across almost seven hours of driving, the MG’s trip computer was claiming an average energy use of 18.6kWh/100km. To replenish the batteries, a 140kW DC charger will take just 30 minutes to take them from 10 to 80 per cent.
The V2L is another nice addition, which allows you to draw power from the battery, if needed, to run small electrical appliances.
The XPower is hardly a car for camping but, for example, if you decided to take it to a track day and want to plug in a kettle to make a hot drink, you can literally plug it into the car. Handy!
Where the Outback regresses compared to its predecessor is efficiency.
Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.
The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.
Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.
At least both engines can drink from the standard 91 RON petrol bowser.
So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.
The real question about the XPower is not if it’s quick, because all EVs and especially those with dual motors tend to be very rapid in a straight line, but how it handles itself on a twisty road.
That’s what separates a good hot hatch from a great one, but it’s also an area EVs have struggled in, because the combination of silence, weight and just the fact they’re new and different tends to mean they lack the driving engagement of more established competition.
Hot hatches also need to play a dual role, as daily transport and weekend fun machine, so that’s another factor to consider.
So, how does the MG4 XPower stack up? Well, the unsurprising news is it’s very, very quick. The acceleration is ferocious and really shoves you back in your seat, leaving you in no doubt that it will leave most of its hot hatch rivals (with the exception of the Audi RS3) in its dust.
When the going gets twisty though the XPower feels like it lets its rivals catch back up. There are different driving modes and switching to ‘Sport’ and reducing the regenerative braking makes a notable difference to the way the XPower handles.
The steering gets heavier and it will roll and coast into corners more like a petrol-powered hatch. It makes for a very competent car, with direct steering and good road holding… but not a great hot hatch.
It lacks the engagement and excitement that the best hot hatches offer. For example, the steering gets heavier in Sport mode, but doesn’t provide any more feedback to the driver. The Bridgestone Turanza tyres do a fine job but they lack the grip of a Michelin Pilot Sport.
The lasting impression on the driver is a car that feels quick but doesn’t leave you wanting more. The best hot hatches make you want to keep on driving and driving, that’s not the case in the XPower.
As a daily driver it’s arguably better than its rivals, though, with quiet, effortless commuting potential thanks to its electric powertrain.
Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.
The contemporary Forester ran rings around it for driving pleasure and refinement.
But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.
From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.
Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.
We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.
Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.
We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.
Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.
The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.
And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.
More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.
Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.
We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!
This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.
We can’t wait to get to know the latest Subaru better on more familiar roads.
There’s the usual passive safety features, including six airbags as well as the required stability controls, anti-lock brakes and the like, however the XPower also comes equipped with the MG Pilot suite of active safety features as standard.
MG Pilot includes autonomous emergency braking, lane keeping assist, lane departure warning, adaptive cruise control, blind-spot monitoring and rear cross-traffic alert.
Thanks to all of this safety gear, the MG4 range was awarded a maximum five-star ANCAP assessment, when it was tested in 2022.
There is no ANCAP crash-test rating at the time of publishing, but anything less than the full five stars will come as a scandalous shock from Subaru.
The Outback’s aforementioned ADAS tech runs to AEB front and rear, rear cross-traffic alert, blind-spot monitoring, emergency lane-keep assist, lane-departure warning/prevention, a pre-collision braking system, adaptive cruise control with full stop/go functionality across all grades. Also present are traffic-sign recognition and new acceleration override tech to help prevent collision. Nine airbags are fitted, while a front-centre airbag is new to the series.
No AEB performance parameter information has been released as yet for Australian models.
Finally, there are two outboard rear-seat ISOFIX child restraint points and two top tethers available.
Like every MG sold in Australia, the MG4 XPower is covered by the brand’s seven-year, unlimited kilometre warranty, which is industry standard for high-volume brands these days.
As for servicing, the intervals are also the same as the rest of the MG4 range, which means a lengthy two years or 40,000km, whichever comes first, between visits to the dealership.
That’s much longer than your typical petrol-powered hot hatch, which has more moving parts that need servicing.
In terms of costs, the XPower is ever-so-slightly more expensive compared to the rest of the MG4 line-up.
A minor service is the same $296 but a major service (which comes every second service) will cost you $962.
But even so, for the first six years you’ll only be up for $1554 in servicing costs, which is comparatively cheap amongst its hot hatch rivals, and only $76 more than you’ll pay for any other MG4.
Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.
Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.
Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.
There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.