Subaru Outback vs BMW X1

What's the difference?

Over 30 years and seven generations of Outback in Australia, the latest might just be the best.

It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.

The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.

We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.

That’s not bad for something this square!

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

This new BMW X1 feels like it's been built by a team of parents because it’s one of the most practical and easy to use small SUVs my family and I have ever lived with and, trust me, they’ve seen a lot of test cars come through the Berry garage.

We loved the roomy interior with high ceilings, the clever storage everywhere from the giant door pockets to the floating centre armrest up front and big boot for our pram.

Entry and exit is easy through the tall and wide doors, something my back was thankful for every time I had to put our baby into her car seat.

Driving is easy, with great visibility and the engine that comes in the xDrive20i M Sport makes this X1 sporty and fun to pilot, too.  

The only drawback is the price, it's a bit expensive but at the same time you are getting a high-quality feeling SUV.

Historically, Subarus have majored on quirky. Kooky even.

Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.

But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.

Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.

What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.

On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.

Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.

This current generation of X1 arrived in late 2022 and finally looked more like part of the BMW SUV family with tall and boxy styling rather than the sleek, but raised hatchback it seemed to be before.

My test car had 'M Portimao Blue' metallic paint - a flattering hue that showed off the X1’s lines as you can see in the images.

I like the X1’s oversized grille which suits the angry looking front bumper that comes with the M Sport inclusions, but balanced by pretty headlights.

Inside, the X1 xDrive20i M Sport is modern and minimalist in design. I like the floating centre armrest in between the driver and front passenger and the way it creates a feeling of more space and adds more storage.

The double screens are nice, but we’re seeing this same design and tech now in budget cars such as the Chery Omoda 5 and Haval H6. BMW needs to be even slicker and more stylish if it wants to maintain its edge.  

If you like your SUVs sporty looking then check out the BMW X2, X4 and X6. These are coupe style SUVs (but with four doors).

Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.

The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.

The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.

But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.

That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.

A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.

But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.

If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.

The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.

Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.

Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.

My family found the X1 xDrive20i to be one of the most practical small SUVs we’ve lived with thanks to its spacious interior, clever cabin storage and plenty of convenient features.

I need to point out the door pockets - they’re the biggest I’ve ever seen. They’re more door buckets than pockets and super helpful over the week not just for bottles but for everything else that I needed to dump out of my own pockets and into them.

The floating centre armrest up front looks like an ironing board and has a tonne of storage underneath.

The wireless charging is handy but the holster is a bit un-user friendly in terms of access, but it held the phone tight and stopped it becoming a projectile when driving, which is what you want.

There are power outlets galore, too, proximity unlocking, and a gesture tailgate.

Legroom in the back is excellent and there’s so much headroom throughout. 

The X1’s 540-litre boot capacity is excellent for the class and meant we could fit our baby’s big pram and the seven-year old’s scooter and still have room for the grocery shopping.

In the space of driving this SUV and writing this review the list price of the X1 xDrive20i M Sport has risen from $68,900 to $73,400. 

That price hike was part of an increase across the model range and all grades now cost more, even the entry-level sDrive18i which is now 13K less than the xDrive20i M Sport.

But you’re paying for the more powerful, athletic and only all-wheel drive one in the X1 range. 

You’re also getting loads of standard features in the xDrive20i M Sport. 

There’s the 10.25-inch instrument display with three different styles for your speedo and other gauges, while flowing into that is the 10.7-inch media screen with sat nav, wireless Apple CarPlay and Android Auto, and digital radio. 

There are LED headlights, plus proximity unlocking, a head-up display, dual-zone climate control, a power tailgate, sports seats (the front ones are heated and power adjustable) and adaptive cruise control.

As the name suggests the xDrive20i M Sport is fitted with BMW M Sport goodies as standard. These include adaptive M Suspension, M leather steering wheel, M roof rails, M headliner and M interior trim. 

My test car also had $8900 worth of options fitted including the sunroof, Harman Kardon stereo, the ‘Vernasca Black’ leather seats and 20-inch M light alloy multi-spoke wheels.

Is it good value? Well, you do get a lot of nice things here but at a $13,000 premium over the entry grade, plus the $3500 price jump in the past few weeks, I’d say the value isn’t great.

If you’re trying to keep the cost down, the sDrive18i is the budget pick. 

Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.

The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.

Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.

Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.

The X1 xDrive20i M Sport has a more powerful engine than the grades below it in the range - it’s a 2.0-litre, turbo-petrol, four-cylinder making 150kW and 300Nm.

A seven-speed dual-clutch automatic transmission does the shifting for you.   

This is also the only all-wheel drive X1 currently in the range.

Where the Outback regresses compared to its predecessor is efficiency.

Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.

The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.

Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.

At least both engines can drink from the standard 91 RON petrol bowser.

So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.

BMW says that after a combination of open and urban roads the X1 xDrive20i M Sport will use 7.4L/100km.

In my own testing my driving was mainly city and suburban, which uses quite a lot of fuel. We did dashes to birthday parties, the grocery shopping, school drop offs and all of it in busy traffic.  

I recorded 8.9L/100km, but that’s not overly thirsty considering I was carrying two car seats with children, and all the gear that goes with them. 

A small 45 litre tank means the xDrive 20i M Sport has a range of about 608km, which is on the shorter side.

Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.

The contemporary Forester ran rings around it for driving pleasure and refinement.

But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.

From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.

Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.

We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.

Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.

We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.

Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.

The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.

And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.

More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.

Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.

We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!

This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.

We can’t wait to get to know the latest Subaru better on more familiar roads.

Only a week before testing the X1 xDrive20i M Sport I’d been reviewing a BMW 330e and going from the 3 Series to the SUV was like changing my seating position from being in a bathtub to sitting on a bar stool. 

Actually, the X1’s seat is far more comfortable than a stool and the refined quality is what you’d expect from BMW.

But compared to the low slung 330e the visibility and the upright driving angle of the X1 is very different.

It’s something you want in an SUV that puts practicality before performance.

As much as I liked the sporty sedan, as a dad I preferred being able to see better when parking in the X1, and this made life a lot easier.

Easy is a good word to describe what the X1 xDrive20i M Sport is like to drive - from that visibility to the light steering, comfortable ride and that great engine with all-wheel drive.

That 2.0-litre four-cylinder has more than enough grunt to run up the steep hills in my neighbourhood without struggling, the transmission is smooth and the all-wheel drive system adds a bit more reassurance in the wet weather.

All of this makes for an easy, enjoyable drive. 

The X1xDrive20i M Sport like all X1s scored the maximum five-star ANCAP rating in 2022.

A score of 88 per cent was given to child protection and the ANCAP report found that a 10-year old and six-year old in the second row had adequate to good protection in a front offset collision and a side impact. 

For child seats there are two ISOFIX points and three top tether anchor mounts across the second row.

As you would expect from a model that’s hasn’t even been around a year yet, the X1 xDrive20i M Sport has the very latest in advanced safety tech.

There’s AEB which is operational from 5.0km/h to 210km/h and also works at road junctions. There’s lane keeping assistance, blind-spot warning and rear cross-traffic alert. 

There are curtain airbags for front and rear passengers, a centre airbag for the driver and co-pilot along with frontal airbags plus side chest and side pelvis airbags.

Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.

Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.

Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.

There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.

The X1 xDrive20i M Sport is covered by BMW’s five-year/unlimited kilometre warranty.

A five-year/80,000km service plan through BMW will cost $2150. You’ll be looking to pay an average of $430 per service every 12 months.