Peugeot 408 vs Skoda Octavia

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.

While other brands may have a higher profile, the quality of this Octavia RS proves Skoda deserves a greater share of the limelight. If you’re thinking about a primo mid-size sedan, or wagon, or even a medium SUV, this car combines satisfying performance with low-to-the-ground dynamics, immense practicality, top-shelf safety and solid value-for-money. It’s nicely put together using quality materials and the ownership package is class competitive. Do yourself a favour and add it to your new-car shopping list.

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.

The current Octavia complies with Skoda’s sharp and angular approach to exterior design, with cool, jagged LED headlight clusters sitting either side of a blacked-out octagonal grille.

A brand signature is the bonnet shutting low and flush over the front guards to create a broad hood panel with longitudinal character lines running down its length. Similar creases flow confidently along the car’s flanks with 19-inch alloys filling the wheel wells nicely.

A smoothly tapering turret ends with a steeply raked rear screen on the sedan and wagon with angular LED tail-lights following a similar pattern to the headlights.

As well as the black grille, car-spotters should look out for the RS’s black finish on the window frame surrounds, roof rails (wagon only) wing mirrors and tailpipes as well as red brake calipers and RS sports bumpers front and rear.

Always a subjective call, but I for one think this car looks distinctive and contemporary while avoiding unnecessary flashiness.

Inside, the treatment is relatively reserved, with a grey through to black colour palette and high-quality materials, including soft-touch surfaces around the dash, doors and console, as well as ‘mouse fur’ and faux carbon sections on the upper dash.

The sports front seats are trimmed in a combination of synthetic leather and synthetic suede with quilted panels in the centre of the cushion and backrest. They feel as good as they look and are easy to get in and out of. Red contrast stitching throughout the interior dials up the racy tone.  

A sizeable central media touchscreen sits proud of the dash with the VW Group’s ‘Virtual Cockpit’ ahead of the driver configurable through multiple set-ups. And a smattering of dark chrome and brushed metal highlights (including on the pedals) finish off a beautifully executed interior.  

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. 

Practicality is an area where Skoda comes into its own. At every turn the brand’s design and engineering teams have obviously kept day-to-day usability in mind with thoughtful tweaks to make life easier.

Some have become low-key famous like an umbrella slotted into the driver’s door (Rolls-Royce-style) and a small lidded rubbish bin in the driver’s door pocket.

But over and above that, the Octavia’s efficient packaging means in a car measuring just on 4.7m long there’s heaps of room up front for the driver and passenger, with lots of handy storage options. 

Aside from generous door pockets there’s a box between the seats with a padded lid (adjustable for height and length when in use as an armrest), a 15W wireless charging pad (with ventilation from below to keep devices cool), a big glove box (with pen holder), multiple cupholders, a cupholder insert able to hold a phone and/or some coins, numerous oddments trays and a sunglasses compartment overhead (not fitted with optional panoramic sunroof).

And in the back, sitting behind the driver’s seat, set for my 183cm height, there’s tons of leg and headroom with more practical design thinking on display.

For example, map pockets on the back of the front seats have a phone-sized slot stitched into them. There are pull up shades for each window, big bins in the doors with plenty of room for bottles and more, a pull-down centre armrest with fold-out cupholders (plus some oddments space), adjustable climate control vents plus a box on the floor for extra bottles and ‘stuff’ (removable if you need foot room for a centre passenger).

Power and connectivity runs to five USB-C sockets (two front, two rear and one near the rear-view mirror for dashcam duty) plus a 12-volt outlet in the boot. 

Speaking of which, head to the boot and the ‘plenty of room’ theme continues. With the 60/40 split folding rear seat upright there’s 600 litres of space in the sedan and 640 litres in the wagon. Lower the backrest and that number increases to 1555 and 1700 litres, respectively. That’s plenty, and more than the Mazda6.

The sedan and wagon feature anchor points for securing loose loads, extra storage bays behind the rear wheel wells, there’s a ski-port door behind the rear armrest, load divider rails in the sedan, remote release handles for the rear seat, bag hooks, a luggage net… the lot. 

The powered tailgate includes hands-free opening, there’s a space-saver spare under the floor and towing capacity for a braked trailer is 1600kg (750kg unbraked).

Priced at $58,490 for the sedan and $59,990 for the wagon, both before on-road costs, the Octavia RS has one competitor that meets the mid-size sedan and wagon criteria with cost-of-entry somewhere in the same ballpark. And that’s the current Mazda6 20th Anniversary Edition.

Pitched at $54,385, before on-road costs, for the sedan and $55,685 (BOC) for the wagon, the Mazda goes toe-to-toe with the Skoda on size, equipment and performance, although the ‘6’ leans more towards a premium rather than outright performance vibe. And the Mazda has recenetly been discontinued in Australia.

The Accord VTi-LX Hybrid ($59,900, drive-away) puts Honda in the sedan mix and if you’re considering a pure electric medium sedan, the BYD Seal Premium comes in at $58,798, before on-roads while the Tesla Model 3 Single Motor RWD sits at $54,900.

So, aside from the safety and performance tech, covered a little later, what can you bank on in terms of included features for a price tag giving $60K a serious nudge?

The answer is… heaps. Standard equipment on the Octavia RS includes three-zone climate control, adaptive cruise control, a 13-inch multimedia touchscreen, sat nav, 12-speaker Canton audio (with digital radio), a 10-inch configurable digital instrument display, a head-up display, sports front seats (heated with six-way power adjust, memory and massage function), heated rear (outboard) seats, a power tailgate (with hands-free opening), keyless entry and start and rain-sensing wipers.

There’s also ‘Intelligent Park Assist’, LED external lighting (including matrix LED headlights), 19-inch alloy rims, heated and power-folding exterior mirrors (with memory function), synthetic leather and synthetic suede trim, a flat-bottom leather-trimmed steering wheel, alloy finish pedals and rear privacy glass as well as wireless Android Auto and Apple CarPlay. 

Worth noting solid, metallic and pearlescent paint options (seven colours) are included as standard, with the single premium metallic ‘Velvet Red’ colour adding $770. 

That’s as much fruit as you should expect in this part of the market and a bit more.  

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 Octavia RS is designated ‘195TSI’ which relates to the power output of its 2.0-litre, four-cylinder, turbo-petrol engine driving the front wheels through a seven-speed dual-clutch auto transmission.

It’s a fourth-generation evolution of the Volkswagen Group’s long-serving ‘EA888’ engine series, an iron block/alloy head unit featuring direct-injection and variable valve timing to produce (you guessed it) 195kW and 370Nm.

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 Octavia RS’s official fuel consumption figure on the combined (urban/extra-urban) cycle is 7.0L/100km, the 2.0-litre turbo-petrol engine emitting 159g/km of CO2 in the process (wagon 160g/km).

A start/stop function is standard and on a launch drive program through rural Victoria, covering several hundred kilometres’ worth of urban, B-road and freeway running we saw a (dash-indicated) figure of 6.9L/100km. With a 50-litre fuel tank on board, the RS’s theoretical range is around 715km.

In the city, expect an average in the high 8.0 range, which isn’t out of order for a 1.5-tonne sedan (1.6-tonne wagon).

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. 

Skoda claims 0-100km/h acceleration in 6.4 seconds for the Octavia RS sedan and 6.5sec for the wagon and it feels willing with solid mid-range punch available. 

Peak power comes on stream up high (5250-6500rpm) but maximum pulling power is on tap from 1600-4500rpm, which is spot-on for urban running, easy highway cruising and safe overtaking.

A sports exhaust dials up a rorty note when pushing on and the seven-speed dual-clutch transmission proved quick and smooth on a launch drive covering mainly rural B-roads and some freeway sections.

Steering wheel-mounted paddles add extra involvement when you’re in the mood to push through some twisty stuff and select ratios manually.

Speaking of corners, suspension is by struts at the front and a multi-link arrangement (unique to the RS grade) at the rear, with an electronically controlled limited slip differential and ‘Dynamic Chassis Control’ standard. Ride height is 15mm lower than the standard Octavia.

DCC is Skoda code for an adaptive damper set-up and the system offers a ‘Comfort’ mode to help manage bumps, although it adds an air of floatiness on the open road. As the name implies, ‘Sport’ buttons everything down and road imperfections immediately make their presence felt. ‘Normal’ is surprisingly comfortable without upsetting the car’s balance and overall compliance. 

Standard rubber is 225/40 Bridgestone Potenza S005, providing a good grip vs comfort compromise, and the electrically assisted progressive rate rack and pinion steering is accurate, providing good road feel without being too sharp or ‘pointy’. Braking is by ventilated discs all around and the pedal is strong and progressive.

Under the heading of miscellaneous observations, engine, wind and road noise are modest, the grippy sports front seats remained comfortable over several hours behind the wheel, plus a relatively tight 10.4m turning circle and standard 360-degree camera view system make parking easy.  

The current Skoda Octavia was given a maximum five-star ANCAP rating following assessment in 2022. High scores in the adult and child occupant protection categories focused on the stability of the car’s passenger compartment in front offset, full front, side and pole impact crash tests.

For the 2025 model year, standard active (crash-avoidance) tech now includes turn assist and advanced driver fatigue detection, which is on top of auto emergency braking (AEB) operating from 5.0-250km/h (with car and ‘vulnerable road user’ detection plus junction assist), lane keeping assist (and emergency lane keeping), rear AEB, blind-spot monitoring, rear cross-traffic alert, a reversing camera, a 360-degree camera view, tyre pressure monitoring, front and rear parking sensors and more. 

If, despite all that, a crash is unavoidable the airbag count runs to 10 - dual front, front side, rear side, side curtain, front centre and driver's knee.

There are three top tether points for securing child seats across the second row with ISOFIX anchors on the two outer rear positions. 

That’s an impressive safety run down, as good or better than any category competitor.

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 Octavia is covered by Skoda’s seven-year/unlimited kilometre warranty, which is ahead of the mainstream five-year warranty pack, although a little short of some, like MG and Mitsubishi at 10 years.

Service is recommended every 12 months/15,000km and a four-year/60,000km service pack will set you back $2000, with 12 months’ roadside assistance topped up for another year after each trip to an authorised workshop.

That $500 per service charge is a solid amount but not outrageous for a premium, especially Euro, mid-sizer. For reference the Mazda6 20th Anniversary averages $552 per service over the same period.