Peugeot 408 vs BMW IX3

What's the difference?

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.

The BMW iX3 is a rarity in the market, a premium-feeling electric model that's not a whole lot dearer than petrol alternatives.

For those happy to trade some of the Tesla Model 3 and Kia EV6 GT's all-paw performance for a luxurious cabin, slick drive and badge cachet, the iX3 M Sport is a very attractive package. Until Audi's Q4 and Q6 e-tron arrive, the iX3 remains basically peerless in this part of the market.

No wonder, then, that BMW is Australia's third most popular electric car brand after Tesla and BYD. The vehicles capture everything the brand promises at a price that looks good on paper and better in the real world.

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.

Now that we've seen the new X3, the current model is already dated. Not that it was a cutting-edge design at launch but there is precious little offensive about this mid-size SUV.

Fussy wheel designs, strange closed in grilles and clashing blue accents aside the iX3 M Sport remains a plenty handsome option as you approach.

Inside the cabin's shapes feel positively conservative next to BMW's latest efforts like the X2 and 7 Series but, in a way, this is no bad thing.

It's also nice that you can tailor this car's appearance to your liking without spending extra, the combination here rocks a nice blue paint with tasteful brown upholstery for a classy look.

You can have Oyster white leather or simple black and the paint colour palette is refined without being restrictive.

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 BMW X3 was developed with family buyers in mind and that has paid dividends because it has an extremely practical cabin with lots of thoughtful storage.

Each of the four doors has a bottle holder and generously-sized pocked for extra storage. There are two cup-holders in the centre with a wireless charging pad, secure spot for the key fob and USB port in easy reach. You can slide a roller cover down to hide valuables.

Key driving controls are smartly grouped together around the iX3's unconventional gear selector. Here, you'll find the start/stop button along with hard switches for drive mode selection, stability control and exterior cameras.

Right next door is where the rotary 'iDrive' controller lives with yet more physical shortcut buttons. Including the extra option to easily interact with the multimedia system on the move is a refreshing delight that you don't see in so many touchscreen-heavy EVs. There's also a physical stack for HVAC and seat heating controls.

The 12.3-inch touchscreen is responsive and bright with BMW's slightly older system having a more conventional appearance than the latest software in the iX2. Apple CarPlay and Android Auto are wireless and still work flawlessly.

If there are some negatives, they would be some build-quality niggles. On the whole the materials are high quality and the car is well screwed together but the indicator stalks feel decidedly flimsy compared to BMWs of old and I noticed a rattle from the parcel shelf on the road.

The eight-way power adjust seats with tilt and under-leg extension are classic BMW, being sporty enough to hold you in but with enough padding to stay comfy. Though we will knock this car down for lacking power lumbar adjust.

Those in the back will be plenty comfortable even if they're taller than 180cm with ample head, leg and toe-room. There doesn't appear to be a major compromise to the floor height despite BMW stacking 10 lithium-ion modules beneath.

Vision out is excellent with an expansive glasshouse and full-length sunroof.

Amenities include two USB-C charge points, a third climate zone, fold-out armrest with pop-up cup holders and generous storage in the doors.

Fitting child seats should be pretty simple with doors that open wide, two sets of ISOFIX ports (that you can't lose the covers of) and three prominent top tether anchors in the recline-adjustable backrest.

The boot is large with 510L of space at a minimum that expands to 1560L if you fold the 40/20/40 split backrest flat. There's a sense of solidity in that process, too, with sturdy levers and components.

So sturdy that the retractable luggage cover is quite difficult to remove, especially for shorter owners. Other niceties include a single shopping bag hook, LED lighting and 12-volt socket in the back.

No BMW X3 comes with a spare tyre so that should come as no surprise. The iX3 instead has a tyre repair kit. There is underfloor storage in the iX3, though, which is the perfect place to store both charging cables — Mode 2 and 3 — that are included.

The iX3 M Sport may be expensive compared to a rear-drive Tesla Model Y but next to premium-badged rivals, it cuts rather attractive shapes at BMW's $89,100 before on-road costs asking price.

Outside, there are 19-inch alloy wheels, adaptive LED headlights, no-cost choice of six metallic paints (Phytonic blue is what you see here), illuminated door sills and a power tailgate.

The impressive list continues inside with 'Vernasca' leather-appointed seats available in three colours and 'Sensatec' artificial leather on the dash and high-traffic touchpoints.

The front seats are heated and power adjustable and the ambient lighting is customisable. The iX3 also has tri-zone climate control, tyre pressure monitoring, free-of-charge open poor wood trim, adaptive dampers, a heat pump and even a full-length opening sunroof.

Paying the best part of $12,000 extra for the M Sport Pro doesn't change the single 210kW motor, 74kWh (usable) lithium-ion NCM battery and 461km of WLTP driving range. 

Instead, you get bigger 20-inch alloy wheels, black grille surrounds, acoustic glass with tinted rear windows, lumbar adjust, gesture control, head-up display and a Harman Kardon sound system.

There are also BMW's 'Iconic Sounds' in the Pro and the more expensive model includes five years from Chargefox public charging.

Mercedes-Benz no longer sells the EQC so the iX3's natural three-pointed star rival becomes the EQE300 SUV, which retails at $134,900. Audi's Q6 e-tron is not yet here so cross-shoppers will need to look at the smaller Q4 from $88,300.

The iX3's only direct premium rival is the Genesis GV70 Electrified, starting from $125,858 in the sole Performance AWD guise.

Even higher trims of mainstream rivals such as the Kia EV6 GT-Line RWD ($79,590) and Mustang Mach-E Premium RWD ($79,990, all prices before on-road costs) sit in close proximity to the BMW.

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.

In this case there isn't much under the bonnet except for electric gubbins. The single electric motor – that uses no rare earth materials – resides at the back and generates 210kW/400Nm.

Those outputs are fairly close to a petrol X3 30i, though of course this model is rear-drive only.

Thanks to the rapid response of electric motors, the iX3 M Sport can sprint from 0-100km/h in 6.8 seconds (claimed).

BMW has chosen to give the iX3 a long-travel progressive throttle pedal that makes grunt easy to meter out. However, the regenerative braking could do with a little more refinement.

There are two settings, 'D' — just like letting off the throttle in a combustion car — and 'B' which is quite strong. The blending between regenerative and physical caliper-on-rotor braking is vague, though, which can make low-speed moves a bit jerky.

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.

The iX3 M Sport's WLTP rating is a respectable but not groundbreaking 461km on the combined cycle. The reality is a little bleaker, our test car displaying 316km on its digital instruments at 100 per cent charge.

Going against what you might expect for an electric car, the iX3 was not very efficient in town, we initially saw 24kWh/100km on the read-out which is quite high.

It is better suited to a longer, steady-state run. Our regular 200km country and suburban test loop dropped the consumption to 18kWh/100km for a real-world driving range of 411km.

When it's time to bring the charge levels back up the iX3 will take on AC electricity at 11kW, for flat to full in seven and a half hours.

Public fast-charging caps out at 150kW (DC) though averages to 104kW over a 10-80 per cent session. This should take 21 minutes, says BMW.

We only observed a maximum of 101kW on a DC charger though the pylon did not appear to be performing at full energy with other vehicles having similar issues.

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. 

Despite no saucy straight-six, V8 or twin-cam four-cylinder there is an inherent 'BMW-ness' in the iX3 M Sport. The way it steers, accelerates and rides all match the brand's DNA.

It is not a plush SUV, with some firmness to the suspension even in Comfort mode on the adaptive dampers — this may have something to do with BMW's 40PSI front and 45PSI rear tyre pressure recommendations — but without ever being crashy.

Build up a little more speed, beyond 60km/h for example, and the body settles nicely with a solid, assured stance.

There's no evidence of suspension noise and road noise is very well insulated as well, even without the up-spec M Sport Pro's acoustically insulated glass. 

The steering is light in Comfort mode which makes it ideal for urban driving. It also has three turns lock-to-lock which is a lot for a sporty-ish BMW, however that is largely down to the improved steering angle. Without an engine or AWD system, the iX3 has a great turning circle of just 12.1 metres.

Moving things up a notch into Sport adds extra weight to the steering which helps judge the grip on good roads, which is pretty decent from the 245/45R19 Yokohama Advan Sport V107 tyres.

When you approach the limit, the iX3 is very secure but significant mid-corner bumps can unsettle the car, bringing its 2180kg tare weight (a 325kg penalty over the xDrive20i) sharply into focus. Pull it back a touch, though, and the iX3 M Sport is plenty rewarding on a country road.

Mostly, the iX3 is a refreshingly natural electric car out on the road. You could put anyone in the driver's seat and they'd be smooth just like in a combustion car.

The BMW X3 was awarded a five-star ANCAP rating in November 2017 which expired last December as part of ANCAP's push to stay more relevant.

Electric, petrol and diesel models carried the five-star score but, strangely, the 30e plug-in hybrid model did not.

The iX3 has seven airbags (dual frontal, side chest, side head-protecting curtain and driver knee airbags are standard), autonomous emergency braking with pedestrian detection, lane-departure warning, blind-spot monitoring and lane-keep assist.

BMW has one of the better programmed adaptive cruise and lane-trace assist systems. The lane-trace assist worked well on test without being too intrusive.

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. 

The iX3 M Sport is now covered by a five-year/unlimited kilometre warranty in Australia.

Servicing is due on a conditional basis with the multimedia system prompting the owner when to visit a dealer.

BMW offers serviced packages for electric vehicles that last six years/unlimited kilometres, with the iX3's pack costing a reasonable $2325 over that time.