Skoda Karoq vs Peugeot 408

What's the difference?

This new entry-level Karoq gives the already accomplished mid-size SUV an even sharper value-for-money edge. On top of that it's space efficient, hugely practical and economical. Safety's up to speed, the ownership package is solid and it's a quiet, refined drive. Before joining the RAV4 queue, we'd suggest giving this Skoda some serious thought.

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

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.

Skoda's distinctively broad, vertically slatted grille stands the brand apart, and even after six years in market the Karoq looks crisp and contemporary with chiselled character lines and jagged head and tail-lights blending successfully with more gently curved surfaces along the car's flanks and turret.

It might be a subconscious side-effect of knowing Skoda is part of the VW Group, but I can't help seeing hints of Tiguan here and there, particularly around the side windows and rear end.

But cool touches like aero-influenced inserts in the 18-inch alloy rims reinforce the Karoq's individual look.

Move to the inside and while the 8.0-inch central media touchscreen and 8.0-inch digital instrument display are on the pace the overall design shows the car's age.

Quality trim materials lift the tone, the cloth seats with contrast stitching look (and feel) great, but the understated dash design in particular is 'traditional', the vibe accentuated by liberal use of piano black highlight elements.

That said, the mix of on-screen functions and physical controls works well ergonomically and the leather-trimmed, partially-perforated, flat-bottom steering wheel is hard to fault.

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 dimensions, at just under 4.4m long, a bit more than 1.8m wide and a fraction over 1.6m tall the Karoq is a relatively small medium SUV.

Yet, its 2638mm wheelbase means there's enough space between the axles for generous accommodation front and rear with enough room left over for a decent boot.

There's ample room for me, at 183cm, in the front with plenty of breathing space between driver and co-pilot. Not to mention heaps of storage including big door bins with room for large bottles, an open area in the centre console under an extending and height-adjustable centre armrest, various coin and oddments slots, a good size glove box, a broad lidded dash-top compartment and a drop down box near the driver's right knee.

Move to the rear, and sitting behind the driver's seat set to my position, I've got good head, leg and shoulder room. Best for two adults, although three would be possible for (cozy) short trips.

Three up to teenage kids will be fine back there, but if your kids are in a capsule, child seat or booster you'll be good with two but three will be a bridge too far.

Again there are door bins with enough room for oversize bottles, three cupholders in the fold-down centre armrest (one is 'venti'-sized) as well an oddments tray at the back of the front centre console and map pockets on the front seat backs. Adjustable ventilation is another plus.

With all seats up the Karoq offers a healthy 588 litres (VDA) of storage space, expanding to 1810L with the 60/40 split rear seat folded. A rear seat 'ski-port' style door also increases flexibility.

There are numerous bag and tie-down hooks as well as thoughtful storage spaces around the boot space. A full-size (speed limited) spare sits under the floor and while the tailgate misses out on power assistance, there's a typically useful dangling grab handle to help with closing.

For those keen on towing the FWD Karoq is rated up to a 1.5-tonne braked trailer (750kg unbraked).

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 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 Karoq is powered by a 1.4-litre, all-alloy, direct-injected, turbo-petrol four-cylinder engine sending 110kW (at 6000rpm) and 250Nm (from 1500-3500rpm) to the front wheels via an eight-speed automatic transmission.

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.

Skoda's official combined cycle fuel economy number for the Karoq is 6.5L/100km, the 1.4-litre turbo-petrol engine emitting 147g/km of CO2 in the process.

On the launch drive program for this new entry-level model, covering city, B-road and freeway running along the coast south of Sydney, NSW, we recorded an average of 7.6L/100km.

That's useful for a conventional combustion engine without the benefit of electric hybrid assistance. Worth noting, however, minimum fuel requirement is the pricier 95 RON premium unleaded.

You'll need 50 litres of it to fill the tank which equates to a theoretical driving range of 770km using the official figure or around 660km using our on-test result.

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.

Despite riding on sizeable 18-inch alloys (shod with 215/50 Goodyear Eagle F1 rubber), first impressions behind the Karoq's wheel are dominated by how composed and refined it is.

Even on coarse, irregular B-roads the car remains supple yet balanced and well buttoned down in the corners. The steering is nicely weighted and road feel is good.

Skoda says the Karoq will accelerate from 0-100km/h in 9.2 seconds, which isn't ferociously fast but the 1.4-litre turbo four delivers its peak pulling power from 1500-3500rpm, which means you're never short of mid-range urge.

The smooth eight-speed auto also helps keep things on the boil although power delivery isn't always linear. Squeeze the throttle and the engine can take half a beat before responding in something of a rush.

Shift from 'Normal' to 'Sport' mode and the transmission will respond more urgently, holding on to ratios longer and changing down more readily. And if you want full control, move the lever over into the 'Tiptronic' manual position for satisfyingly rapid changes on-demand.

The engine remains quiet, only making its presence felt at higher revs, the supportive front seats remain comfortable over lengthy stints and the brakes (vented discs front, solid rotors rear) deliver firm, progressive stopping power even under the pressure of an enthusiastic twisty backroad run.

Under the heading of miscellaneous observations, the multimedia system is easy to navigate and quick to respond, the extending, height-adjustable front centre armrest is brilliant and the adaptive cruise system responds to changes quickly yet calmly.

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 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.

Skoda is ahead of the mainstream pack, offering a seven-year, unlimited kilometre warranty, which is two years up on the majority of the Karoq's competitors.

Roadside Assist is complimentary for the first year, renewed annually if you have your Karoq serviced at an authorised Skoda dealer.

The main service interval is 12 months/15,000km, which is in line with most of the competition, and Skoda offers a seven-year service pack for $2750, or $393 per workshop visit, which is competitive with much of the segment but some way off the Toyota RAV4 non-hybrid at $215 per service on a capped-price deal.

On top of that, through Skoda Choice you can opt for a Guaranteed Future Value offer ranging up to five years, with variable deposit and finance currently at a 6.99 per cent rate.

At the end of the term you can trade-in for a new Skoda, pay out the balloon amount and keep the car or simply hand it back.

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.