What's the difference?
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.
KGM (formerly SsangYong) has revised its Musso range for 2026 with some new features and revised styling throughout the Australian line-up, as well as a name-change for this grade: the Advance which used to be the Adventure.
The updated Musso is a dual-cab 4WD ute with high and low-range gearing, an auto-locking rear differential and 3.5-tonne towing capacity, and all for under $50,000.
And with the optional XLV (extra long vehicle/version) pack, which our test vehicle has, it gets a longer wheelbase (110mm extra), a 300mm longer tub and 90kg of extra payload over the standard Musso (880kg rather than 790kg).
So, is the Musso an affordable alternative to the likes of Toyota HiLux and Ford Ranger?
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 KGM Musso Advance is a large 4WD ute offering a decent amount of appeal for the price and it makes a lot of sense in XLV form.
It’s generally nice to drive, it’s comfortable and capable for a ute and – as with the Rexton – the Musso is another clear sign that KGM continues to improve its vehicles, albeit incrementally in some cases, in terms of quality and functionality.
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.
The Musso is based on its SUV stablemate, the Rexton. It’s a body-on-frame 4WD ute, available only as a dual-cab, and its appearance is inoffensively pleasant.
Styling changes to the Advance include a black grille, black 18-inch alloy wheels, HID headlights (on short and XLV grades), and rear privacy tint.
It also has a black leather-look interior with black leather-look seats.
The Musso’s interior offers plenty of space for the driver and passengers and is neat and well laid out.
Build quality and fit and finish are impressive with a mix of durable plastic and soft-touch surfaces throughout including a leather steering wheel and leather-look seats in the Advance.
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.
There is the expected array of storage spots (glove box, door pockets etc), cupholders (two to the rear of the auto shifter) and charge points (two USB-C ports and a 12-volt plug point for driver and front passenger).
The seats are comfortable and supportive and, in general, KGM has maximised space in the cabin, yielding plenty of shoulder and legroom for driver and passengers.
The 12.3-inch touchscreen multimedia system works reasonably well although you do have to cycle through numerous menus and sub-menus to change some settings and I did have to try several times to pair my phone to it, so overall functionality is clunky.
Rear-seat passengers have access to directional air vents, but there are smart-device charge points.
The tub size is as follows: 1600mm long in the XLV (1300mm in the standard Musso), 1570mm wide (1100mm between wheel-arches) and 570mm deep. The tub has a plastic tub liner and four tie-down points.
For a direct comparison of dimensions: the standard Musso is 5095mm long with a 3100mm wheelbase while the XLV is 5405mm with a 3210mm wheelbase; the standard Musso is 1950mm wide and 1870mm high (the XLV is 1885mm). For reference, the Ford Ranger XLT dual-cab ute is 5406mm long (including rear bumper and tow bar receiver) with a 3270mm wheelbase.
The difference in dimensions between a standard Musso and the XLV version also means a difference in off-road angles so approach is 22.8° / 25° (XLV), departure is 23.4° / 20° (XLV) and rampover is 23° / 20° (XLV).
Minimum ground clearance is 215mm in a standard Musso and 220mm in the XLV, so the Musso XLV does stand taller off the ground than its regular stablemate.
Kerb weight is listed as 2090kg for the standard Musso and 2100kg for the XLV. Turning circle is 11.8m for the standard Musso and 12.2m for the XLV.
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 KGM Musso is available in three grades - ELX, Advance, and the Ultimate. All three can be optioned up with an XLV Pack, which adds a 300mm longer tub giving you an additional 251L rear tub capacity, along with a 110mm longer wheelbase. XLV also increases maximum torque from 400Nm to 420Nm.
At the time of writing, our test vehicle, the Advance, has drive-away price of $48,700.
Standard features in the Advance include 12.3-inch touchscreen multimedia system (with wireless Apple CarPlay and Android Auto), 12.3-inch digital LCD instrument cluster, leather-accented heated and ventilated front seats with electric adjustment, 18-inch black alloy wheels, HID headlights, LED daytime running lights, and a suite of driver-assist tech, but more on that in the Safety section below.
Exterior paint choices include Grand White (no extra charge), Amazonian Green (metallic paint), Marble Grey (metallic paint), Pearl White (metallic paint) and Space Black (metallic paint). Metallic paint is available for $700.
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 KGM Musso Advance with the XLV Pack has a 2.2-litre four-cylinder turbo-diesel engine – producing 133kW at 4000rpm and 420Nm from at 1600-2600rpm – it gets an extra 20Nm over the shorter version's 400Nm from 1400 to 2800rpm.
It has a six-speed automatic transmission, part-time 4x4 with high and low range, and an auto-locking rear differential.
This is a sluggish combination producing a generally lacklustre performance and the powertrain is not particularly efficient but, having said that, the Aisin auto is a reliable, well-proven transmission and the Musso ultimately does reasonably well with what it has.
The 4WD mechanicals and driver-assist tech actually work better in this package than they do in the Musso’s stablemate, the Rexton.
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.
Official fuel consumption for the Musso Advance with the XLV treatment is 9.0L/100km.
On this test, I recorded 11L/100km, but on the test I spent a chunk of time in 4WD high and low range.
The Musso has a 75-litre fuel tank, so going by my on test fuel-consumption figures, from a full tank, you could reasonably expect a driving range of about 681km.
But it is worth noting that I didn't have a lot of weight on board during this test – it was just me and the vehicle recovery gear – and you will have a lot more weight on board: your family or your mates, pets, camping gear, surfboards, kayaks, the whole kit and caboodle.
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.
On-road, the longer-wheelbase Musso is composed and comfortable with well-subdued NVH (noise, vibration and harshness) levels adding to an impressive overall sense of low-key refinement.
The engine and auto work reasonably well together, but as mentioned earlier this is a sluggish unit and it takes some urging to get it going. Pronounced lag from stand-still can be disconcerting, especially when you need plenty of zip to punch you into the traffic flow.
This ute’s suspension – double-wishbone, coil springs and stabiliser bar at the front, multi-link with coil springs at the rear – is firm, mostly controlled, but the Musso becomes jittery on irregular surfaces, such as lumpy back-roads bitumen and mildly corrugated dirt tracks.
One noteworthy annoyance: the Musso does not have adaptive cruise control.
Despite that, the Musso is actually quite reasonable for general driving duties.
As a 4WD, the Musso actually performs pretty well. It is a long wheelbase ute, so you have to drive it with consideration because you have to take into account its shallow off-road angles – approach, departure and ramp over – and it has quite a large overhang of tub behind the rear axle.
It has an auto locking rear diff, which is clunky in operation and I’d prefer a switchable diff-lock, which you could select whenever you want to, but otherwise it's effective in a workman-like kind of fashion.
Steering is not too shabby, it has a nice weight to it in all situations, whether you are on the bitumen or a dirt track. Turning circle on this long-wheelbase ute is 12.2m, but it feels nimble to steer around on the tracks.
The Musso has part-time four-wheel drive and high and low range 4WD gearing. It doesn't have a lot of power and torque in terms of the contemporary dual-cab ute market, but it does fine with what it does have; 420Nm in the XLV Musso gives it that little bit of extra punch over the standard Musso (400Nm) and that torque is available across a decent spread of revs.
If you intend to use your Musso as an off-road adventure vehicle or a weekend holiday machine, then it's handy to know that it's unbraked towing capacity is 750kg and its braked towing capacity is 3500kg and that's on par with the dual-cab ute market.
In terms of tyres, it’s the same story here as with most standard 4WDs – the Musso’s Nexen NPriz RH7 (255/60R18 108H) are not well-suited to anything other than light off-roading. The easy fix? Replace those tyres with some decent all-terrain tyres.
Payload is a listed 880kg (790kg in the standard Advance), GVM is 2980kg and GCM is 6480kg.
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 Musso does not have an ANCAP rating because it has not been officially tested.
As standard, the XLV Advance has six airbags, auto emergency braking (AEB), lane departure warning, trailer sway control, blind-spot monitoring, rear cross-traffic alert, front/rear parking sensors plus reversing cameras and more.
Adaptive cruise control is not offered on Mussos in Australia, only old school cruise control.
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 MY26 Musso range is covered by a seven-year/unlimited kilometre new-vehicle warranty, and five years of roadside assistance.
A service is required every 12 months or 15,000km, whichever occurs soonest with cost per service either $418 or $522.
Note, KGM considers off-roading as an example of a “severe driving condition” and so your Musso may require more frequent servicing.
KGM Australia has more than 50 dealerships across the country with a decent spread across metro and regional areas. Rextons can be serviced at those dealers or at approved workshops.