Peugeot 408 vs Mitsubishi Outlander

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.

Mitsubishi has leaned into its strengths with this Outlander update, spending its money in subtle areas to upgrade what was already a widely appealing mid-size SUV.

The local tuning has made a notable difference to the refinement and comfort of this version, while subtle updates to the software and interior trim help to refine things even further.

If you’ve had an Outlander before, you’ll love this one, although it doesn’t help the brand to challenge new players on the value front. This leaves you with the decision of whether to pick a brand with the reputation and network of Mitsubishi, or roll the dice on a far more affordable new player.

For what it’s worth, it’s genuinely tough to pick a sweet spot here. I think the best picks are at either end of the spectrum, with the ES being outstanding value, and the Exceed being particularly plush.

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

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.

Blink and you’ll miss the changes. Actually, squint and you still might miss them. Aside from the eye-catching new 20-inch wheels on the Exceed and Exceed tourer grades and the new ‘Moonstone Grey’ paint colour, it’s hard to tell the new Outlander apart from its predecessor.

Look closer and there’s new lower garnish designs front and rear, a tweaked grille and a smoked appearance for the rear tail-light clusters.

It’s very subtle stuff, but Mitsubishi has chosen to spend its time and money on upgrades on unseen areas.

For example, the bonnet is now steel rather than aluminium, which helps with noise insulation (and also has the side-effect of removing the high-speed ‘fluttering’ effect the aluminium bonnet had on the previous version), there’s additional sound insulation throughout the car, and cladding in the transmission tunnel to make the cabin a quieter place.

Back on the topic of appearance, though, the dash and console has also been tweaked a little. For example, the new screen looks a bit more contemporary, with a much smaller bezel and more attractive software. The console has been rearranged to move the bottle holders to one side of the electronic gear shifter, which makes for a larger centre console.

High-grade leather seat trims also now have alternate patterns, but the range follows the same trims, from cloth on the ES and LS, while the Aspire gets a microsuede and synthetic leather blend, while the Exceed and Exceed Tourer get the ‘high-grade semi-aniline’ leather trim.

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 previous Outlander was already known for having a spacious and versatile cabin, and this continues for the new car with a few small tweaks.

The width and satisfying seat positioning continue, and seats in all grades are generous and comfortable, but particularly the leather seats on the Exceed and Exceed Tourer grade we tested.

Adjustability is good in all positions, and the digital instrument cluster has an attractive dual-dial layout and functional display options. While not the best in class, it’s far better than many rivals.

The touchscreen’s new software is meant to be faster, but I found it a bit laggy still, although the integration of Google’s API into the navigation suite is an excellent tweak, making it relevant and useful for much longer.

The tweaks to the centre console make the area more space efficient and useful, but the new cupholders seem strangely shallow, potentially causing large bottles to tip. The tweaked centre console box is nice and large, and the wireless charger is nice and accessible, although its surface is not quite rubbery enough to stop your phone from leaving the charging area in the corners.

The back seat is noticeably stadium – you sit a fair bit higher than in the first row, which eats into headroom in cars equipped with a sunroof for adults. However, width is good, as is the seat comfort.

The rear doors open nice and wide, which should make fitting a child seat easy enough, and the floor is surprisingly flat, too, which makes the middle position more useful.

The third row, which I sampled in an Aspire grade, is both hard to get into and tight once you’re in there. The second row can slide forward on a rail, offering just enough room for me, at 182cm tall, to fit back there, with my knees hard up against the seat in front, and my head nearly touching the roof.

It is for this reason Mitsubishi calls seven-seat versions ‘5+2’. Good for kids, maybe, but not adults for any extended period of time.

The boot is enormous with two rows in use (485 litres in five-seat versions, or 478 litres in seven-seaters), and for this update, the space now has a wider aperture that should make loading objects easier. Space with seven seats up is 163L. Five-seaters get a full-size spare under the floor, while seven-seaters get a space saver.

Braked towing capacity is a middling 1600kg for petrol-powered variants. The brand says not many Outlander buyers are focused on towing as a key capability for the mid-sizer.

Let’s get the bad news out of the way first: prices are up across the whole Outlander range.

The increases are modest, contained to between two to three thousand dollars across this mid-size SUV’s sprawling eight-variant range.

It sounds like an overwhelming number of versions but the Outlander is split across five grades in front- or all-wheel drive, with either five or seven seats.

Check out our pricing table below for the detailed prices before on-road costs:

Traditional rivals in the 5+2 mid-size SUV category include this model's platform-mate Nissan X-Trail (from $38,025 - $59,265) and the Honda CR-V ($41,900 - $59,900), with the Hyundai Santa Fe ($53,000 - $72,500) and Kia Sorento ($50,880 - $84,660) being a price-bracket above.

The biggest issue is the Outlander is facing increased competition from models like Chery’s Tiggo 7 (as a five-seater), which can be had for as low as $29,990 drive-away! Even the most expensive version of the Tiggo 8 (seven-seater) in plug-in hybrid form costs the same as a mid-grade Outlander, at $49,990 (d/a). 

Options like this put the choice back in your hands. You can choose a brand with the heritage and support network of Mitsubishi, or you can go with the value of a new player yet to put those runs on the board.

Although it has an almost identical visage to the previous car, there are some major upgrades hidden below the metal. Sure, there’s a tweaked equipment list, but importantly, there’s a completely revised ride and handling tune, which was developed by Mitsubishi right here in Australia using local expertise.

It’s a similar program to the successful ones undertaken by Kia and Hyundai in recent years to improve the handling of their cars, and Mitsubishi in Japan was impressed enough with the depth of the changes that most of them have been adopted to the global tune for the car.

On the topic of standard equipment, LED interior lights and the 12.3-inch digital dash have been made standard across the range, there is now seat ventilation to join the seat heating for the front two positions in the top Exceed and Exceed Tourer grades, while the upper mid-spec Aspire grade scores front seat heating and a heated steering wheel.

The 12.3-inch multimedia screen has also been upgraded, featuring a smaller bezel and more processing power for a faster response rate, as well as a tweaked software suite with a new layout. This screen also hosts wireless Apple CarPlay and Android Auto across the range.

In addition, there’s also the introduction of the Mitsubishi Connect phone app, which features a range of safety and security features, as well as the ability to remotely control things like the ignition, climate system, navigation and locking system.

Across the range the audio system has also been upgraded to an eight-speaker Yamaha-developed system, with the top-spec Exceed Tourer grade scoring a 12-speaker Yamaha system with up to 1650W of power.

The interior now uses higher-quality materials, according to the brand, with extended upholstery across the range. The top-spec Exceed Tourer also scores a new brown interior colour.

A 360-degree parking camera is now standard across the range, and the safety suite also includes the driver monitoring system and traffic sign recognition system as also used in the Triton.

The plug-in hybrid version, which is what the Outlander is arguably most famous for, is not yet available, but Mitsubishi tells us it will arrive in a few months time, at very least before the end of 2025, and it, too, will carry an Australian-developed ride and handling tune.

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 petrol-powered Outlander soldiers on with a drab non-turbo, non-hybrid 2.5-litre four-cylinder engine, mated to a continuously variable automatic transmission.

The brand calls this combination “proven” and it’s hard to argue given it hasn’t cropped up with any major reliability issues in the pre-facelift car.

Still, it produces a middling 135kW/244Nm, not as punchy as many turbo options, and nowhere near as efficient as hybrid alternatives.

Those seeking a more powerful fuel-sipping option may want to wait for the PHEV version arriving later this year.

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.

As a result of its relatively old-school sounding powertrain, fuel consumption isn’t at the forefront of the petrol-powered Outlander, with official consumption ranging between 7.5L/100km for the lightest five-seat ES 2WD version, to 8.1L/100km in the heaviest, top-spec Exceed Tourer AWD.

C02 emissions are also on the high side, which the brand will no doubt be off-setting with the new PHEV version which will offer even more emissions-free driving range than before.

One benefit of this long-serving engine, though, is it can be fed entry-level 91RON unleaded, better for the back pocket. The petrol-powered Outlander has a 55-litre fuel tank.

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. 

The Australian team had a significant amount of input on the driving dynamics of this new Outlander, but does it make a big difference behind the wheel?

We were granted the chance to drive the old one alongside the new version to find out, and the changes are significant.

Overall, the character of the car hasn’t been fundamentally altered. This is still a somewhat plush and soft-around-the-edges family SUV, but redeveloped new suspension parts and even very minor, nerdy modifications like the thickness of sway bars have added up to a much more pleasant vehicle to spend an extended amount of time in.

The first thing you’ll notice is the retuned steering. Mitsubishi’s engineers tell us the tweaked feedback was all down to the software in the rack, and it’s a big difference, upping the firmness of the steering at low speeds, keeping the vehicle on track with more confidence while heading straight, and also removing a slight twitchiness with sudden adjustments.

Next is the cabin ambiance. The new Outlander is a relatively quiet place to be thanks to the extra insulation throughout. It combines with the new steering to give the car much more of a sense of heft than before. The engine is reduced to a distant thrum, and the road is damped away for the most part. Mitsubishi says the 20-inch wheels are a particular hit with buyers, which to me is a shame because I’m willing to bet it’s particularly comfy on the lower-grade tyres.

Elsewhere, the Outlander has a softer initial response to bumps thanks to retuned shocks, and the reduced width of the front sway bar makes for less ‘head toss’ for front seat occupants.

Does it make a significant difference? Yes. The new Outlander is all-round better balanced and better suited to our road conditions. It might not have the sophistication of more expensive options, and it still might be a tad off what the also balanced-and-comfortable RAV4 offers, although it will be interesting to get one back to see how it compares to rivals in a like-for-like test.

Just expect a much more comfort-oriented option than some rivals. These changes don’t make the Outlander as fun to drive as a Mazda CX-5 or a Skoda Kodiaq. For example, while the 2.5-litre engine and CVT combo provides a surprisingly urgent initial response, it's a dull, rubbery power application from there on.

The Outlander has a robust array of active safety kit, with all the key gear like autonomous emergency braking, lane support, blind-spot monitoring and rear cross-traffic alert available across the range. Traffic sign recognition and driver attention monitoring is now available from the new Triton, however it is also worth noting some relatively minor items are only available on higher grades.

The ES and LS grades miss out on adaptive high beams, traffic jam assist and steering assist (although they maintain lane departure warning and lane-keep assist).

Mitsubishi is hoping the updated Outlander will qualify for a continued five-star ANCAP safety rating held by the pre-facelift model.

During our drive we also found the lane-keep and driver attention software (which was much-derided at the launch of the Triton) was reasonably well behaved, with the brand saying it had had significant software tweaks over time to make it less invasive. We’ll need to save our final verdict on this system for when we spend an extended time behind the wheel.

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. 

Mitsubishi continues to offer its near-industry-leading 10-year/200,000km warranty, conditional on the car being serviced at a Mitsubishi dealer. Otherwise, it reverts to a five-year/100,000km promise.

The 10 years of warranty is joined by 10 years of capped-price servicing required at 12 month or 15,000km intervals.

Prices are tame, varying between $320 and $680 per visit, for a total yearly average of $434. It’s not the cheapest yearly average out there, but most brands also don’t have capped price servicing extended this far, so it seems like a good deal regardless.