Subaru XV vs BMW M2

What's the difference?

Even years on from its initial launch and with only subtle changes to its main range, it’s really to Subaru’s credit that the XV feels just as capable and modern as any of its rivals.

This is not to say it’s perfect. We can’t recommend the base model, the maths don’t really work out on the hybrids, the only available engine is breathless, and it has a small boot.

But the XV’s excellent safety suite, driving dynamics, all-wheel-drive capability, quality finish and comfortable interior mean it’s hard not to be charmed by this little lifted hatch.

Our pick of the range? While the 2.0i-L is great value, we’d recommend you splurge to the 2.0i-Premium to get the full safety suite and extra garnish.

Proving good things still come in small packages, the pint-sized M2 remains my pick of the BMW M range. It's not the perfect daily drive, but I reckon the fun outweighs the foibles.

The key to the XV’s fun and adventurous appeal is perhaps the fact that it’s not really an SUV at all. It’s rather obviously a lifted version of the brand’s Impreza hatchback, and this is to its credit.

It’s simple but tough, cute but capable, and really everything many consumers are looking for when it comes to a small, all-wheel-drive SUV. Not only does this design philosophy (of lifting wagons and hatches rather than creating bespoke “SUVs”) match Subaru’s family of products, but the ride height, plastic claddings, and tough-looking alloys offer hints of the all-wheel-drive capability that lies beneath.

Little has changed for the 2021 model year, with the XV most recently receiving a tweaked grille, updated front bumper, and a new set of alloy wheels. The XV range is also available in a fun array of colours, which Subaru hopes will help it win more of a youth vote. As an added bonus, none of the colour choices carry an extra charge.

The interior of the XV continues the fun and adventurous theme with Subaru’s signature chunky design language noticeably different from its rivals. My favourite element of this has always been the bumper-car steering wheel, which feels great in your hands in its leather-clad finish, but there are also nice soft claddings throughout the doors and big seats with nice bolstering and design.

While we like how big and sharp the main 8.0-inch screen is, if there’s one thing Subaru gets wrong it’s how busy the whole cabin package is. The visual assault of three screens seems unnecessary, and as much as I like the wheel, it is also completely adorned in somewhat confusingly labelled buttons and toggles.

Still it’s an attractive, fun, and unique design amongst its small SUV peers. Subaru fans, at least, will be sure to adore it.

There have been mixed reviews of the design of the BMW M range, but I reckon this one looks pretty damn good. In fact, I've always thought this kind of hyper-aggressive styling looks better on smaller cars than it does on big ones.

And it certainly is aggressive, right? From the huge bonnet bulges to the meshed out grille and angry rear diffuser, to the staggered alloys and flared wheel arches, to the blocky rear end with its four massive exhaust exits.

But my favourite exterior item has to be the blacked-out carbon roof, which helps shrink the M2 visually, and makes the whole car look more potent.

Inside, it's plenty sporty feeling, with hard-backed sports seats, lashings of carbon-fibre-look trimmings and the bright red M buttons on the steering wheel.

It's nice, but some of the touch points – like the hard plastics on top of the doors, where, if you're like me, you rest your elbow when driving – feel less than premium.

Still, all the tech is present and accounted for, with its digital dash and huge centre screen, and there's no shortage of spaces to connect or charge your phone.

In some ways the XV is very impressive when it comes to its interior practicality, but in other ways it disappoints.

The front seats offer heaps of room for adults with good adjustability, and while the seating height is very high by default, there’s still lots of headroom and adjustability, with the added benefit of a very commanding view of the road for such a small SUV.

As mentioned, the doors, dash, and transmission tunnel are all clad in soft materials, and front passengers also benefit from no less than four USB ports in every grade except the base 2.0i, a huge centre console box, comfortably large bottle holders in the centre with a removable divider, a small bay under the climate unit that also houses a 12v outlet and auxiliary input, and a single large bottle holder in the doors with a small adjoining bin.

A surprise comes in the rear seats, which offered enough head and knee room for a particularly tall friend of mine. It’s rare for the small SUV segment to offer such space, but behind my own (182cm tall) seating position I had ample airspace for my knees and decent airspace for my head too, even despite the Premium and S grades having a sunroof fitted.

Rear passengers get a flip-down armrest with bottle holders, a small bottle holder in the doors, and pockets on the backs of the seats. The seat cladding is just as good as it is in the front, and the width in the rear seats is notable, however the centre seat suffers from the existence of a tall transmission tunnel to facilitate the all-wheel-drive system, and there are no adjustable air vents or power outlets for rear passengers either.

Finally, one ongoing weak point for the XV is the amount of boot space on offer. Boot capacity is 310-litres (VDA) for non-hybrids or 345 litres for hybrid variants. This is decent when compared to smaller light SUVs but definitely leaves room for improvement when it comes to the XV’s main small SUV competitors.

Space can be boosted to 765L in non-hybrid or 919L in hybrids with the seats down (again, not great), and the hybrid model loses the underfloor space-saver spare wheel, instead leaving you with a very compact puncture-repair kit.

The M2 pocket rocket measures just over 4.5m in length, just under 1.9m in width, and just over 1.4m in height, and it rides on a 2747mm wheelbase. That makes it longer, wider and lower than the model it replaces.

Remember that 'lower' bit, as it will come up again in a moment.

Up front, you don't feel cramped, and there's the requisite cupholders, door pockets and hiding holes, as well as wireless device charging and USB connections.

But remember, this is a two-door, four-seat affair, which cuts into the practicality a little, or a lot.

Swing open the wide front doors, and push the front seat-back forwards, and the entire chair will slide forward automatically.

It does help create more room to climb into the back, but it's still a slightly embarrassing challenge to make getting back there look anything like graceful.

Once there, it's tight. I'm 175cm and my head was firmly pressed into the roof.

You do get your own vents and temp controls, but that's about it. Even the pull-down divider only gives you access to the 390-litre boot, rather than extra cupholders.

You do get two sets of ISOFIX attachment points, though, and let's be honest –  if you're buying this to make Bunnings runs, you've probably got it wrong.

First, the bad news. The M2 has only been getting more and more expensive over the years, and this new-generation model continues that charge.

Fun fact: When we first tested this model way back in 2016, you could get the Pure grade for less than $90K with a manual transmission.

Or you could spend just under $100K for the full-fruit version. This one, though, lists at $121,700, before on-road costs.

So, a little less bang for buck, but there's still a whole lot of bang on offer here.

You'll find staggered 19- and 20-inch lightweight alloys, while standard performance kit includes an 'Active M Differential', 'Adaptive M Suspension', 'M Compound Brakes' (with blue calipers), 'M Sport Seats' up front and, for the first time, a lightweight 'M Carbon' roof.

Elsewhere, there's adaptive LED headlights, a 12.3-inch instrument display and a 14.9-inch multimedia screen, a head-up display, a Harman Kardon 'Surround Sound' audio system and Android Auto and Apple CarPlay connectivity.

You'll sit on leather seats that adjust electrically and are heated up front. There's three-zone climate control, along with a heated steering wheel, wireless device charging and ambient interior lighting.

The XV now has two drivetrain options in Australia. One is the carryover 2.0-litre petrol engine, now with a smidge more power, and a hybrid version of the same layout with an electric motor housed in the continuously variable transmission. There is no manual variant in the XV range.

The 2.0i models produce 115kW/196Nm, while the hybrid produces 110kW/196Nm from the engine and 12.3kW/66Nm from the electric motor. All variants are all-wheel drive.

The hybrid system is powered by a lithium-ion battery pack under the boot floor, and in practice functions a bit differently from Toyota’s popular system.

We’re sure Subaru die-hards will be dismayed to know a version of the XV packing the larger Forester’s 2.5-litre petrol engine (136kW/239Nm) will not be making it to Australia for the foreseeable future.

Besides, this is what we're really here for, isn't it? The M2 gets the 'M TwinPower' 3.0-litre twin-turbo inline-six engine, producing a sizeable 338kW and 550Nm, sending that power to the rear wheels via an eight-speed auto or six-speed manual.

BMW says this engine is very, very close to the engine that powers the M3 and M4, and says it will rocket the M2 from 0-100km/h in 4.1 seconds, and to 200km/h in either 13.5 seconds in the automatic, or 14.3 seconds in the manual.

It’s not such a great story for the hybrid variant here, as even on the official numbers it only saves a tiny amount of fuel.

The official/combined number for 2.0i variants is 7.0L/100km, while the hybrid variants trim this to 6.5L/100km.

In practice it only got worse on my test. Over similar driving conditions consisting of several hundred kilometres over the course of a week, the 2.0i-Premium non-hybrid produced 7.2L/100km, while the hybrid actually used more fuel at 7.7L/100km.

It’s worth noting we’ll be holding on to the hybrid for a further three months as part of a long-term urban test. Check back in to see if we can trim this number down to something closer to its claim in the coming months.

All XV variants can drink base-grade 91RON unleaded and 2.0i variants have 63-litre fuel tanks while hybrids make use of a 48-litre tank.

A small fly in the ointment is fuel use, with the M2 said to use 9.7L/100km on the combined cycle. It also drinks 98 RON premium, and is home to a 52-litre fuel tank. Your theoretical driving range is around 540km.

Now, be warned, you'll be bored stiff if you drive it in the way that's required to get it that low. When we were being gentle, we were somewhere between 10.5 and 11.5 litres per hundred kilometres.

Emissions are pegged a 220g/km of C02.

No matter which XV you choose, you’ll be getting a very comfortable and easy-to-steer small SUV, and the drive experience has only improved with this year’s updates.

The XV’s newly re-worked front suspension and tall ride height make for a package more than capable of dealing with anything the suburbs will throw at it. This is the kind of car that scoffs at speed bumps and potholes.

The steering is light enough to be comfortable, but provides just enough feedback to keep it engaging, too, and the always-on all-wheel-drive system provides a sense of constant security in corners and even on loosely sealed or wet surfaces.

The XV has better SUV cred than almost every other car in its class on the capability front, enough at least to make it a decent companion for seeking those unsealed campgrounds or vantage points.

Where it’s not as good is its engine options. We’ll get to the hybrid in a moment, but the standard 2.0-litre engine is underpowered for a relatively heavy small SUV, with the added burden of all-wheel drive, and it feels it. This engine doesn’t have the follow-through of its turbocharged rivals and is very thrashy when much is asked of it.

This experience isn’t really helped along by the rubbery-feeling continuously variable automatic transmission, which is at its best in stop-start traffic. It strips the fun out of trying to drive this car with a bit more vigour.

Unlike Toyota's hybrid alternatives, the hybrid XV isn’t a significantly different experience behind the wheel. Its electric motor doesn’t really have enough strength to get it up to speed, but it does assist when it comes to acceleration and coasting to help take the stress partially off the engine. The XV also doesn’t provide a hybrid indicator like Toyota does, so it’s much harder to understand the effect your accelerator input is having on the motor.

The centre screen does display the energy flow, though, so it is good to have some kind of feedback that the hybrid system is helping on occasion.

Hybrid variants also add something called “e-Active Shift Control”, which uses input from the car’s sensors and all-wheel-drive system to better tune the hybrid assistance to the CVT. In general driving terms, this lets the electric motor pick up the slack of the petrol engine when it's most needed in the corners and in low-torque instances.

On a final note, all of these moments of electrical assistance do make the hybrid versions notably quieter than the non-hybrid ones. I still wouldn’t recommend choosing the hybrid on its driving experience alone, but it will be interesting to see how Subaru can build on this technology in the future.

Let's be totally up front here: the BMW M2 isn't the most comfortable vehicle to live with. In fact, I recently climbed out of the M3 Touring, and found that to be more comfortable on broken city streets.

The M2 is fitted with adaptive suspension, but even in its most comfortable settings it can feel rough, bumpy and jarring on bad roads (of which Australia has lots), and unless you're gentle with the accelerator, it can feel a little jumpy when first taking off – a by-product of its prodigious power.

Now, let's be totally up front again: I don't care. The M2 is fun, plain and simple, and for mine, the above is a fair price to pay for something that brings so much joy.

The steering is lovely, the power immediate and the soundtrack intoxicating, and it's the kind of car that's fun no matter where, how far or how fast you drive it.

In fact, fun seems to be the very centre of the M2 proposition, which definitely doesn't take itself too seriously.

For evidence, look no further than the 'M Drift Analyser', buried in a hopelessly busy multimedia system that will have you praising the CarPlay and Android Auto gods.

It will rate your best drift out of four stars, measure it for distance, and basically give you a pat on the back for doing your best hooligan impression (not on a public road, of course).

Fun, then, is the order of the day here. And I bloody love it.

The BMW M2 hasn't been assessed by ANCAP, but it arrives with six airbags, as well as all your usual traction and braking aids.

Elsewhere, you'll find lane change and lane departure warning, active cruise control, front and rear parking sensors, tyre pressure monitoring, and AEB with pedestrian detection.

There's also blind-spot monitoring, rear cross-traffic alert and lane centring assist, as well as a tyre-pressure monitoring system.

Subaru remains on par with other Japanese automakers, with a five-year and unlimited-kilometre warranty promise. There’s 12 months of roadside assist included, and the XV is also covered by a capped-price servicing program for the life of the warranty.

Services are required once every 12 months or 12,500km, and while this is a welcome improvement on the six-month intervals this car used to have, these visits are far from the cheapest we’ve seen with an average price of nearly $500 per year.

The BMW M2 is covered by a five-year, unlimited kilometre warranty, and servicing is 'condition based', in that the vehicle will tell you what maintenance is required, and when.

You can prepay your service costs at the time of purchase for all BMW vehicles, covering the first five years of ownership, for $3480 (which means $695 per service).