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.
It was the moment the Golf grew up. Just over 20 years ago Volkswagen unveiled a fire-breathing R32 variant to top the fourth-gen line-up of its already iconic hatch. With a growling atmo V6 engine, proper Haldex-based all-wheel drive, fat rubber and a pumped-up body, it instantly became the brand’s performance flagship.
And another four Golf generations later an updated ‘8.5’ version of its current ancestor, the Golf R has arrived. An equally focused, heavy-hitting AWD with just over 30 per cent more torque and close to 40 per cent more power than that snarling, original R32.
CarsGuide was invited to its local launch, including a suitably challenging drive program on road and track. So, stay with us to see if this exceedingly hot hatch can earn a spot on your performance five-door short list.
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 some Golf enthusiasts will prefer the lighter, more nimble, front-wheel drive GTI, this Golf R is now an even more serious machine.
It’s a great touring car, super-sharp in the corners and good value in the context of its competitive set. Cars like Toyota’s GR Corolla and Honda’s Civic Type-R are on notice.
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.
In terms of exterior design, at the front there’s a relatively mild cosmetic makeover with some changes to the headlights and the bumper as well as a horizontal line across the grille, which, along with the VW roundel, is illuminated.
From the side the ride height is 20mm lower, and cosmetically there are matt silver housings on the exterior mirrors, blue calipers behind new design 19-inch rims and in the centre of the wheel there’s an R logo rather than the traditional VW branding.
At the back, you’ve got new customisable LED tail-light clusters with welcome and goodbye effects, which can be programmed via the vehicle settings in the multimedia system, as well as a larger spoiler at the back of the roof on top of the tailgate.
Inside, the ‘big’ change is an appreciably larger central multimedia screen running new program software. It has physical touch bars along its lower edge for audio volume and climate control adjustment.
The driver’s display now includes a G-meter and GPS lap timing. The steering wheel has its own look and feel and the sports seats feature integrated headrests. There are alloy covers on the pedals and ‘Carbon Grey’ decorative inlays around the dash and doors.
It’s a classically restrained and subtly sporty design treatment inside and out.
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.
For reference, the Golf R is just under 4.3m long, close to 1.8m wide and a bit less than 1.5m tall with a 2630mm wheelbase. Right in the middle of the medium hatch footprint.
In the front there’s plenty of breathing room for the driver and co-pilot. And in terms of practicality, you’ve got big bins in the doors with room for large bottles. There’s also a box between the seats with a lid that doubles as an armrest, which also adjusts for height and length, which is nice.
If you need more, there are two cupholders in the centre console, one of which is adjustable for smaller cups, plus a long oddments tray as well as a more powerful ventilated wireless device charging tray at the front end of the console.
There’s also a decent glove box and two USB-C ports for power and connectivity.
In the back, sitting behind the driver’s seat set for my 183cm position, I have ample headroom, legroom and more than enough foot room.
That said, three abreast for full-size adults would be very squeezy. Even a trio of middle teenagers might find it a bit tight. Best as a two-seater in the rear.
Then for storage, you’ve got big bins with room for bottles. Fold down the armrest and you’ve got not one, not two, but three different size cupholders in it.
There’s a nifty double pocket set-up on the front seatbacks, each just right for a phone or hand-held game console, as well as a more conventional map pocket lower down.
There are individual ventilation outlets as well as climate control for the rear section, plus two USB-C outlets.
With the 60/40 split-folding rear seat upright the 8.5 Golf R boasts 341 litres (VDA) of boot volume, which is decent, and that number expands to nearly 1197 litres with the seat down.
There’s a load-through hatch, tie-down anchors, a 12-volt outlet, multiple bag hooks, specific lighting and storage compartments to the side.
No spare of any description, however, with a repair/inflator kit your only option.
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 new Golf R is priced at $70,990, before on-road costs, which is a $500 bump from the version it supersedes. A new limited run Black Edition model, the details of which we’ll get to shortly, weighs in at $72,490.
At that money the Golf R lines up against a diverse group of properly hot hatches like the related Audi S3 ($78,800), Honda Civic Type R ($74,100), Lexus LBX Morizo RR ($76,490), Mini JCW ($56,990) and the Toyota GR Corolla ($70,490). Even higher-priced outliers like the BMW M135 xDrive ($83,600) and Mercedes-AMG A35 4Matic ($87,900).
So, the heat is on, and at 70-odd kay it’s fair to expect a decent basket of standard fruit. Aside from the performance and safety tech covered later the Golf R features list includes auto LED matrix headlights, LED tail-lights, Nappa leather-appointed trim, a leather-trimmed steering wheel, heated and ventilated front seats, three-zone climate control, 14-way electric driver’s seat (with memory), 480W nine-speaker Harman Kardon audio (including digital radio), a 12.9-inch multimedia screen (with built-in nav) and a 10.2-inch digital instrument display.
There’s also keyless entry and start, 30-colour ambient lighting, adaptive cruise, a head-up display, wireless Android Auto and Apple CarPlay, auto rain-sensing wipers, surround lighting, a (more powerful) ventilated wireless charging pad, a 360-degree overhead view, ‘Park Assist Plus’, metallic paint, fog lights and 19-inch alloy rims.
Not bad at all in the context of this category.
VW Australia has also announced an optional ‘Warmenau Package’ for the standard R - named after the location of the R division’s headquarters in Wolfsburg - for $6500 bundling up 19-inch forged alloy wheels (developed in-house by Volkswagen R, reducing the weight of each wheel by 8.0kg or 20 per cent), carbon interior trim elements and an ‘R-Performance’ titanium exhaust system from Akrapovič.
Limited to 300 examples, the Black Edition features dark accents throughout, including the wheels, badges, mirror housings, brake calipers and tailpipes, as well as darkened headlights and the lighter 19-inch forged alloys. It’s available in all three Golf R colours - ‘Pure White’, ‘Grenadill Black’ and ’Lapiz Blue’.
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.
This updated Golf R is powered by a 2.0-litre, four-cylinder turbo-petrol engine VW enthusiasts around the world know by its ‘EA888’ code name.
In this guise it now produces close to 245kW (+10kW) and 420Nm (+20Nm) with the maximum available across a broad plateau from 2100 to 5500rpm.
The 2.0L EA888 features a cast iron block and alloy head, with direct-injection, water-cooled exhaust gas routing to the turbo (in the cylinder head) and variable valve timing with double camshaft control.
Power goes to all four wheels via a seven-speed dual-clutch auto transmission and an all-wheel-drive system using a twin-clutch pack to manage front-to-rear drive distribution as well as torque across the rear axle.
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.
VW is proud to point out that thanks to an electronic coolant regulator unit, the Golf R’s 2.0L engine “features very efficient thermal management with a short warm-up phase” which it says reduces friction losses for better fuel consumption.
Its official combined cycle (urban/extra-urban) fuel economy figure is 8.3L/100km, which isn’t out of order for a hot rod hatch with this much performance potential.
Over the course of a 200km-plus road drive on the launch program, covering mainly twisting B-road and highway sections, we saw a dash-indicated average of 9.9L/100km.
With a 55-litre tank those figures translate to a theoretical range of around 660km, and a real-world number closer to 550km between fills.
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 Golf R weighs in at 1517kg and Volkswagen says it will accelerate from 0-100km/h in 4.6sec, which is quick, and the car’s broad torque band makes it super-usable. The maximum 420Nm is available from 2100rpm all the way to 5500rpm.
A blue ‘R’ button on the steering wheel is your short-cut access point to various modes - ‘Eco’, ‘Comfort’, ‘Sport’, ‘Sport+’ and ‘Race’ - and in the racier settings what VW calls ‘Turbo Pre-load’ steps in. More or less an anti-lag set-up for smoother power delivery.
Even from low revs in a (manually-selected) high gear, squeeze the throttle and it quickly builds up a head of steam. Power delivery is impressively linear.
The transmission is super slick and manual shifts are rapid. Refreshingly, manual mode is exactly what it says on the tin. Select a gear with the wheel-mounted paddles and it will stay in that ratio until the rev limiter makes its stuttering presence felt.
And if you’re going into a corner under brakes just keep the left-hand paddle pulled in and the transmission will automatically cycle down to the lowest ratio available, which is handy if you’ve really got the bit between your teeth.
Even with the standard exhaust, once you’ve dialled up the sporty modes, you get that snap, crackle and pop on full-bore upshifts and on the over-run, which also enhances the experience.
Suspension is by struts at the front and multi-links at the rear, and the ‘Adaptive Chassis Control’ system monitors acceleration, braking and steering to fine-tune the set-up.
We drove on some rough B-road sections, in the wet, and the R remained surprisingly refined. Given how hard it grips and how much it communicates back through the seat of the pants it is a comfortable touring car. It’s like a GT in hatch form, eating up the kilometres without fuss or putting too much stress on the driver.
Worth noting we spent much of our time in ‘Nürburgring’ mode, accessed through the Race menu, which, no surprise, was developed on the famous Nordschleife. It’s tuned to optimise dynamic performance on undulating patchy surfaces and is a superb set-up sweet spot for the road and track.
Progressive ratio steering delivers good road feel without too many jitters coming up to your hands. And turn-in is precise without being jagged. Just point the car and it goes exactly where you want it to.
The drive system splits torque between the front and rear axles and across the rear. If, for example, it senses the car wants to turn more but might push into understeer, it calmly manages drive distribution to keep everything under control.
Tyres are Bridgestone Potenza S005 (235/35) and over even coarse chip surfaces they remain quiet and grip with admirable determination.
Braking is by ventilated discs all around and on twisting backroads we occasionally leant on them hard and they were well up to the task. A firm pedal with progressive application when getting on or easing off the brakes.
They even stood up to a race circuit pressure test without raising a sweat, because day two of the launch included a track session at Sydney Motorsport Park. And we can confirm the car is properly fast, balanced and predictable in that environment.
SMP’s dipping, then uphill, off-camber right-hand turn four highlighted the R’s grip and the sophistication of its torque vectoring set-up. We also went sliding on the skid pan in the car’s Drift mode, which biases the rear axle, and is huge fun.
In terms of lower speed manoeuvring, you’ve got a 12-metre turning circle, which isn’t vast but isn’t tiny, so be ready for that.
You’ve also got a 360-degree overhead view, which is very handy in tight spots. And if you want some extra support, ‘Park Assist Plus’ will help you slot the car into the space you’re aiming for.
Under the heading of miscellaneous observations, the sports front seats deliver solid lateral support yet remain comfortable over long periods behind the wheel.
Speaking of the wheel, it’s just the right thickness, with perforated leather at the quarter-to-three positions helping with that lovely connection to the front tyres.
As well, from an ergonomic point-of-view, working through the central multimedia screen and driver’s display is straight-forward, with the latter able to be configured via the steering wheel.
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 current Golf range picked up a maximum five-star ANCAP assessment in 2022 and VW’s ‘IQ Drive’ driver assistance tech package includes highway speed auto emergency braking (AEB) with cyclist and pedestrian detection as well as junction assist, adaptive cruise control (with stop and go), intersection assist auto-braking, low-speed manoeuvre braking, lane keeping assist, lane-departure warning, blind-spot monitoring, rear cross-traffic alert, driver fatigue monitoring and tyre pressure monitoring,
The airbag count runs to nine - dual front, front and rear side, side curtain and a front centre bag. Then multi-collision brake minimises the chances of subsequent impacts after an initial crash. And as the name implies ‘Emergency Assist’ will take control to slow the car if the driver becomes unresponsive.
There are three top tethers for child seats across the second row, with ISOFIX anchors on the two outer positions.
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 Golf R is covered by Volkswagen Australia’s five-year/unlimited km warranty, which is a match for most mainstream brands, although an increasing number are nudging up to seven and even 10 years.
There’s also a 12-year corrosion perforation warranty, which is a plus, and the recommended maintenance interval is 12 months/15,000km with ‘Assured Service’ pricing averaging $840 per workshop visit over the first five years.
Three- or five-year pre-paid ‘Care Plans’ reduce that number, with the latter working out to an average of $658 per service. Far from over the top for a performance hatch like this one.