What's the difference?
The third-generation Volkswagen Tiguan is likely to be the most important new vehicle Volkswagen launches in 2025.
The popular mid-sizer has proven to have impressive staying power for the brand, with the outgoing version still impressing buyers despite being nearly a decade old.
What does this ground-up new version change? Does it have what it takes to maintain the nameplate’s reputation in one of Australia’s most hotly contested market segments? And what are some surprises this time around?
We went to its local launch to find out.
The flagship GAC M8 PHEV Luxury we’re reviewing lives in a strange corner of the family car market. It’s a people mover, but it’s priced like a luxury SUV, designed like a VIP shuttle and powered by a plug-in hybrid system that suggests someone, somewhere, had very specific plans.
It finds itself up against the fully-electric LDV Mifa 9 and Zeekr 009, while also circling the upper end of the Kia Carnival range. The latter of which has proven itself to be the default choice for families.
Which begs the question - who is the GAC M8 actually pitched towards? Families with older teens or ageing grandparents feel like a more natural fit than those deep in the child-seat phase, largely because the M8 prioritises space, comfort and efficiency over the usual kid-wrangling conveniences.
At the same time, its chauffeur-like identity hints at a broader, more commercial audience and one more focused on quiet efficiency and passenger comfort. What can be agreed is the real point of difference here isn’t packaging or versatility, it’s the M8’s plug-in hybrid powertrain, and the way it reshapes where a people mover like this sits within the broader electrified landscape.
Does that approach make sense once you live with it? Let's find out.
The new Tiguan is as confident as ever in its identity, even in such a crowded mid-size SUV space where there are so many models worthy of your attention.
No matter which version you choose, this is still the mid-size SUV for a driving enthusiast who doesn’t quite have premium dollars to spend.
While it may not quite expand its appeal as much as the brand hopes precluding a hybrid variant, those who are choosing this as their family hauler for the right reasons won’t be disappointed.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The GAC M8 PHEV Luxury is a people mover that carves out a very specific niche, largely thanks to its plug-in hybrid powertrain and ambitious price point. It’s undeniably well specified and genuinely luxurious inside, but it never quite escapes its chauffeur-like identity as it's a vehicle built around passenger comfort rather than driver engagement.
Being a new brand in our market limits ownership appeal, at least for now. Where the M8 really impresses, though, is efficiency, and that alone may be enough to justify its unusual positioning.
The new Tiguan is a bit of a mind-bender. Its new design seems to make it feel smaller than the outgoing vehicle, despite it being both slightly wider and longer.
This, I have decided, is because the design creates a visual effect, where the upper curvier parts seem to shrink it down, and the additional length makes it seem narrower than the more boxy visage of the previous model. Also, it’s 20mm shorter than the previous design, which we’re told combines with the new bodywork to make for a 15 per cent drag reduction.
Either way, it’s nice not to see a mid-size SUV not continually engage in an arms race to get bigger and bigger. Volkswagen will also introduce the dedicated seven-seat Tayron later in 2025. It’s a half-size up and replaces the outgoing Tiguan Allspace, and this time it features a much more distinct design from its Tiguan sibling.
The third-generation Tiguan not only embraces a more curvy design aesthetic than its predecessor, but it also features many more contemporary design elements. The headlights and curvy accents over the wheelarches feel like they more closely associate this SUV with the new ID.4 and ID.5 EVs, while the light bar across the front on some grades combines with the new light bar across the rear to give it a trendy silhouette. It tops things off with the ‘Tiguan’ letterwork on the tailgate, and, as usual, a sporty spoiler fitting giving the rear hatch a bit of depth.
As usual, VW’s array of gloss-black, chrome or plastic garnishes on the outside, depending on grade, offer a subtle and tasteful finish to the exterior appearance.
The inside is revolution rather than evolution, now heavily screen-centri, and featuring an array of lighting features like many of its rivals.
The screens look the part and have fast and mostly straightforward-to-navigate software, while the seat designs are a real highlight, being both aesthetically pleasing and nice to the touch in all grades.
The ambient lighting features add a sense of presence to the cabin, and unlike the outgoing car, the new one feels a bit more driver-centric thanks to the design of the dash and screens effectively pointing their way down the road from the driver’s point of view.
It does away with the sparse feeling of the previous car, elevating things a notch with an increase of nice materials throughout.
While some may find the abundance of gloss-black finishes a bit harder to maintain, it’s hard not to feel like this new Tiguan is a major generational jump from the previous one. Mission accomplished, VW.
The GAC M8’s design is… well, it’s out there. This isn’t a people mover that fades politely into the background. There are clear parallels with the Lexus LM, right down to the towering grille (complete with a vague hint of spindle shaping), which may well be the tallest grille I’ve encountered!
It’s a big unit, too, measuring 5212mm long, 1893mm wide and 1823mm high. The overall shape is sharply squared-off and prioritises presence over dynamism. It also comes standard with a full suite of LED exterior lighting.
The cabin claws back some design cred, though, as it’s downright plush with its semi-aniline two-tone leather upholstery - finished in a lush burgundy/black duo in our test vehicle. Accent panels vary between a diamond-design for the dashboard and doors, to suede soft-touchpoints and rose-gold inserts liberally scattered across the cabin.
The only accent that doesn’t land is the large swathes of piano black on the centre console as it’s hard to keep clean.
There are some nice little surprises, too, like the fidget spinner-style crystal gear lever, which is surprisingly fun to fiddle with at traffic stops and two sunroofs with the rear fixed panel illuminating with internal ambient light.
Some of the finishes aren’t the best as there are joinery and door handles that don’t line up properly, which is surprisingly more annoying than you’d think once you notice it. But overall, the cabin feels well-considered and luxurious, even if the execution isn't always flawless.
Like the previous model, VW hasn’t forgotten its pragmatic touches for the interior, despite its increase in complexity and appointments.
Finding a driving position was easy for me at 182cm tall, with both a healthy adjustment range for the seats and steering wheel. The digital instrument cluster remains one of the best on the market in terms of usability and customisation, while the multi-function steering wheel commits to buttons rather than the widely-disliked haptic feedback panels, which have appeared on various other VW models.
Unfortunately, this doesn’t entirely extend to switchgear for key functions, with the climate control exclusively controlled via touch sliders, a touchscreen menu or the Tiguan’s new voice control suite, none of which are as intuitive as just having a physical dial for temperature and fan speed and buttons for recirculate, auto and on-off.
However, the Tiguan does have a central dial on the console, which can cycle through volume control, drive modes or ambient lighting modes when pressed. A welcome addition.
Moving the shift stalk to the steering column, like the ID.4 and ID.5, has also allowed additional space for the centre console area, which is now quite versatile. It includes a variable-height armrest console box with either dividers or a dual-bottle-holder fitting, which can be interchanged between the two areas, while the dual-charging bays up front have a rubberised cover, which can be pulled down as to not waste the storage space. This has the additional feature of making the cooling system for the wireless charging phones more effective.
There are two large bottle holders and pockets in each door, which have a carpeted finish to reduce vibration, and there’s also a passenger glovebox.
The rear seat offers a healthy amount of space behind my own driving position. I had leagues of knee room and a healthy amount of airspace above me, however the presence of a tall raise for the transmission tunnel eats into the amount of room a centre passenger would have for their feet.
The comfortable seats continue and are on rails if you need to increase the amount of room in the boot, or simply want a more aggressive recline. When it comes to storage, there are bottle holders in each door, a drop-down armrest with dual bottle holders, dual USB-C outlets on the back of the console, as well as dual air vents with a touch control panel for the independent third climate zone. The only thing it seems to be missing is built-in window shades, which are offered on some Skodas and the now-discontinued Passat (RIP).
The boot helpfully features a powered tailgate on all grades, and measures in at 652 litres with the second row up, or 1650L with the seats down. Numbers can be deceptive, but it does seem large for the class, and there’s a space-saver spare wheel under the floor.
The front row has plenty of space and the seats feature heating and ventilation, making longer journeys comfortable. However, there’s no extendable under-knee support and only the driver gets lumbar adjustment. I’ve spent much of the week feeling like a chauffeur, as my husband and child insisted on sitting in the back!
The middle row is where the M8 really shines. The captain’s chairs are indulgent, offering full recline, footrests, heating, ventilation, and massage. Comfort is excellent, though the footrest extension limits space for the third row, and even at 168cm I found it a snug fit when fully reclined. Access is straightforward with grab handles and a low 143mm step-in height, though be mindful of kerbs as the doors aren’t forgiving when it comes to tall council strips.
The third row is one of the few that genuinely accommodates adults. Head- and legroom are ample, and the seats feel firm but comfortable, especially with the foldable armrest. Amenities aren't forgotten with four cupholders, two USB-A ports and directional air vents. Access requires sliding through the middle row, so it’s best if those seats are unoccupied, but otherwise it’s not too taxing.
Front-row storage is practical, with a mid-sized glove box, dual-opening middle console, cupholders and a clever phone cradle that integrates a wireless charging pad and cable routing for a tidy set-up. There’s also a USB-A and USB-C port and a 12-volt socket in the large shelf underneath the centre console.
The middle row enjoys three USB-A ports, a USB-C port, directional air vents, retractable sunblinds, tray tables (though not usable while driving) and climate control. Storage is decent, with six cupholders, one of which has heating and cooling, two map pockets, a pull-out drawer and a 220-volt AC outlet.
The 10.1-inch touchscreen multimedia system is serviceable but feels slightly small for the luxury segment. Graphics aren’t the sharpest, the layout isn’t always intuitive and some functions, like the heated steering wheel, require digging through menus. Wireless Apple CarPlay and Android Auto performed flawlessly throughout the week and the 12.3-inch digital instrument cluster is clear and well laid out.
Boot space is modest for a people mover, offering 280L with all rows in place which is enough for a small grocery run but not for a fully-loaded family outing. Folding the third row expands capacity to 1500L, though that leaves you with a four-seater. The loading height is low, which helps, but it has a tall lip which prevents it from being ideal for sitting on during tailgates or picnics. There’s a small underfloor compartment housing the tyre repair kit and a powered tailgate rounds out the package.
Volkswagen is attempting to broaden the appeal of the Tiguan this time around. As such, it hasn’t jacked prices up massively like some recent new-generation versions of rivals, despite a comprehensive cabin tech overhaul and big lift in standard equipment.
As a result, the range is vast, with six variants covering a wide price spectrum and, as the brand says (or hopes), a wide range of potential buyers.
Kicking it off is the base model 110TSI Life, which, at $44,990 plus-road costs, is only $1000 more than the outgoing version. It sports a carryover 1.4-litre turbocharged four-cylinder engine, although it has a new version of VW’s seven-speed wet dual-clutch automatic sending power to the front wheels, replacing the derided dry dual-clutch that marred the base version of the old car.
Standard equipment on the base car is high, including 19-inch alloys, a full array of LED lights both for the headlight clusters and rears, it also includes a 12.9-inch multimedia touchscreen with wireless Apple CarPlay and Android Auto, a 10.25-inch digital instrument cluster with the brand’s signature digital cockpit software, tri-zone climate control, ‘comfort’ cloth seats (said to be benchmarked against the best in-class) with manual adjustments, a leather-trimmed multifunction steering wheel, dual wireless phone chargers, ambient dashboard lighting and even an electric tailgate.
The mid-spec Elegance grade can be chosen with either the 110TSI engine in front-wheel drive, or the new 150TSI 2.0-litre engine in all-wheel drive, priced at $50,690 and $60,690 respectively. It increases the equipment to include chrome styling on the exterior with alternate 19-inch wheel designs, rear privacy glass, improved LED headlights with a lit-up centre strip and dynamic cornering functions, leather interior trim, power adjustments with heating, ventilation, and message functions for the front two seats, and a heated steering wheel.
Alternatively, there is the 150TSI R-Line which starts at $55,690, representing a $4600 price reduction compared to the outgoing 162TSI R-Line. It is also all-wheel drive only and features an R-Line styling pack inside and outside, with sporty but manually adjusted cloth bucket seats featuring integrated headrests up front (which miss out on the heating and ventilation of the Elegance grade), black headlining, an R-line steering wheel with additional contouring, 19-inch alloys in a sportier design, a wider wheel and tyre package for enhanced grip, and the VW’s signature progressive steering tune.
Both 150TSI cars also add adaptive chassis control and hill descent control as standard, with an additional off-road and snow driving mode, while the Elegance specifically scores a larger 15-inch multimedia screen.
Finally, topping out the range is the new 195TSI R-Line priced at a massive $70,490. Not only does this grade score its own 195TSI engine sourced from the Golf GTI, but it also adds everything available in the range, swapping out the 150TSI R-Line’s cloth seats for the leather-trimmed, heated, cooled and massaging ones otherwise only available on the Elegance, along with the larger 15-inch screen, sporty steering wheel and R-Line appearance package inside and out, along with its own set of 20-inch alloy wheels.
Option packs include a black styling pack for the R-Line at $1500, a panoramic sunroof available on the Elegance and R-Line grades at $2100, and the Sound and Vision package, which adds premium audio and the larger 15-inch multimedia screen to the 110TSI variants for $2700.
This makes the Tiguan range span from surprisingly good value at the low end, to a real enthusiast-only proposition at the pinnacle, with VW even pitching the 195TSI R-Line at the lower-end BMW X3 and Mercedes-Benz GLC buyers.
In reality many of its mainstream rivals should include options like the dominant Toyota RAV4 ($42,260 - $58,360), Subaru Forester ($38,690 - $50,140), Nissan X-Trail ($38,025 - $59,265), Hyundai Tucson ($39,100 - $61,100) and Kia Sportage ($32,995 - $55,420).
The surprise, some will note, is all of the Tiguan’s rivals have at least one hybrid variant, where VW has chosen to stick with combustion only for the time being for its new-generation mid-sizer.
There are two grades available for the GAC M8, and for this review we’re in the flagship Luxury, priced from $83,590, before on-road costs. It’s an awkward vehicle to compare because, right now, it’s the only people mover on sale with a plug-in hybrid powertrain.
Its closest like-for-like rivals in terms of size, specification and middle-row captain’s chairs are the all-electric LDV Mifa 9 Luxe and Zeekr 009 (FWD), priced from $129,000 and $115,900, before on-road costs, respectively. Compared to them, the M8 presents strong value. The equation looks less convincing when it’s parked alongside the flagship Kia Carnival Hybrid, which starts from $76,630 MSRP, though the intended markets between the two are notably different.
GAC hasn’t held back on features in the Luxury grade. The front and middle-row captain’s chairs are power-adjustable and offer heating and ventilation, with the middle seats also gaining full recline, extendable footrests and a massage function. Curiously, the driver misses out on massage, though.
Other highlights include a front sunroof with manual blind, a second fixed glass roof, semi-aniline leather upholstery for the first two rows with leather in the third, and a heated steering wheel. Practical conveniences are well covered too, with powered sliding rear doors, a hands-free powered tailgate, acoustic Michelin 18-inch tyres (designed to reduce road noise), a 360-degree camera system, manual rear sunblinds, three-zone climate control and one-touch ‘reset’ buttons for the middle-row seats.
Technology feels thoughtfully specified rather than excessive. There’s a 12.3-inch digital instrument cluster, wireless Apple CarPlay and Android Auto, Bluetooth connectivity and an eight-speaker Yamaha sound system. Charging and power options include six USB-A ports, one USB-C port, a 12-volt socket and a 220-volt AC outlet. The 10.1-inch multimedia touchscreen looks larger than it is thanks to its housing, though it ultimately sits on the smaller side for a vehicle pitching itself at the luxury end of the market.
There are three engine options in the Tiguan range, and it is notable none are even mild hybrids (MHEVs) in 2025.
The base engine present in 110TSI variants is even a carryover 1.4-litre four-cylinder turbocharged petrol engine, providing 110kW/250Nm to the front wheels. The big news for these base cars is the dry-clutch DCT has been swapped out for the better-performing wet-clutch version, which also has various improvements made to it for this iteration. Notably, VW has stripped-out the stop-start system with this engine and transmission combination.
The brand says it opted not to use the more recent 1.5-litre MHEV version of this engine as it simply didn’t need it to meet Australia’s new emissions standards and it would have added a prohibitive amount to the cost of entry-level variants to justify its inclusion in the range.
Next up is the new 150TSI engine. It is a 2.0-litre turbocharged four-cylinder unit, which replaces both the 132TSI and 162TSI engines from the previous-generation model. It provides 150kW/320Nm and drives all four wheels via the same seven-speed dual-clutch automatic. This engine also reintroduces stop-start.
At the top of the range, solely available on the R-Line, is the 195TSI engine. VW says this offers buyers of the previous Tiguan R somewhere to go, but also an option for those who wanted more than the previous 162TSI R-Line offered. The 2.0-litre four-cylinder turbocharged 195TSI engine is sourced from the Golf GTI and produces 195kW/400Nm, driving all four wheels via the same seven-speed dual-clutch. It reduces the 0-100km/h sprint time from 7.1 seconds to 5.9 seconds.
It is a shame in the current environment VW hasn’t chosen to make a splash with the 1.5-litre plug-in hybrid (PHEV) variant, which is available overseas. This Tiguan features a 25kWh battery paired to the 110kW engine to make for an estimated 100km electric-only driving range. It even features both 11kW AC charging and 50kW DC charging for convenient top-ups.
If you want it, tell your dealer. VW tells us they’re working on a business case for the PHEV in the background, but if you want electric driving for now, it’s pointing current customers to the ID.4 (from $59,990 before on-roads).
Both M8 grades share the same plug-in hybrid powertrain, pairing a 2.0L, four-cylinder, turbo-petrol engine with a single electric motor. Combined, they produce up to 274kW of power and 630Nm of torque which is impressive on paper, though it only manages 0‑100km/h in 8.8 seconds. Once the battery is depleted, outputs drop to a more modest 140kW/320Nm. Power is sent to the front wheels through a two-speed automatic transmission, and the M8 is not rated for towing.
To get the best performance from this type of set-up will require diligent recharging.
Efficiency is remarkably even across the Tiguan range, with the new engines and updated transmission helping to make things reasonably straightforward.
The base 110TSI versions have an official/combined fuel consumption of 7.6L/100km, as do the 150TSI versions thar benefit from the stop/start system but have the added heft of all-wheel drive.
The top-of-the-range 195TSI R-Line, meanwhile, is said to consume 8.5L/100km. All versions require 95RON mid-shelf unleaded. And for those who care, the 110TSI and 150TSI produce 173g/km of CO2, while the 195TSI produces 194g/km.
Interestingly, the 110TSI variants have a 55-litre fuel tank, while the 150TSI and 195TSI have a 58-litre fuel tank.
The M8 is equipped with a Type 2 CCS charging port, accepting up to 6.6kW on AC and 39kW on fast DC power. Being able to use a DC charger is a definite plus for a plug-in hybrid and you can charge the battery on this type of charger from zero to 80 per cent in around 30 minutes.
Its 25.57kWh lithium-ion battery is generous for a plug-in, delivering an electric-only range of up to 106km (WTLP). With a combined cycle (urban/extra-urban) fuel consumption figure of 6.1L/100km and a 56L fuel tank, the M8 offers an overall driving range of more than 1000km which is excellent for a vehicle of its size. As with any plug-in, regular charging is key to achieving these figures; over my week of driving, I averaged 6.2L/100km, which is very excellent.
GAC recommends a minimum 91 RON unleaded petrol.
The Tiguan range has some significant upgrades from behind the wheel this time around, but there are a handful of areas where I was surprised to find it didn’t quite live up to expectations.
Firstly, the seating position and driver-centric cabin design make the Tiguan feel like more of a driver’s car than ever before. The bucket-style seats and the high beltline combine to make the seating position feel like more of a hatchback than an SUV. Yet visibility out of the cabin is healthy thanks to large windows and mirrors.
As you set off, the Tiguan feels smoother through its drivetrain than its predecessor, thanks to the new dual-clutch automatic being sandpapered when it comes to its initial engagement and shift-mapping. Even the base 110TSI, which can sometimes struggle for initial torque thanks to a dollop of turbo-lag, has a decent roll-on, and with no stop-start system this time, it’s much more friendly when hopping on the accelerator from a standstill.
The steering tune is great in all grades, helping to make this new Tiguan feel light and reactive, despite its slightly expanded dimensions. This lightness is a trait which shines through on this new version, making it feel much less pedestrian than almost all of its rivals.
On the base variant, this can be to its detriment at times, with the 110TSI engine occasionally overcoming the grip of the front tyres when a lot is asked of it, however all-wheel-drive versions are much more confident in their footing, not only delivering power in a more linear fashion, but also putting it to the ground more smoothly.
R-Line variants, with wider and more expensive tyres, are reactive, grippy, and simply outstanding to drive in this mid-size segment, with the 195TSI bringing a strong additional lump of torque and a throatier engine note.
Indeed, this version of the Tiguan leans into the nameplate’s best traits and solidifies its position as the driver’s option in the segment. The 150TSI R-Line in particular stood out as raucous amounts of fun for a mid-sizer for a fair price, as it could be driven significantly harder than the more powerful 195TSI.
However, this new Tiguan was also not without some disappointments. The amount of road noise in all grades was notable, and while VWs are usually known for their balanced ride quality, all Tiguan variants also featured a certain seemingly inherent firm response to sharper blemishes in the road, perhaps a cost for the otherwise superb body control.
These blemishes in driving ambiance were relatively minor in scale, but surprising to find nonetheless.
Around town, the M8 delivers plenty of power and is whisper-quiet when running in electric mode. Once the battery depletes or you switch over to the petrol engine, that sense of instant oomph fades. Overtaking on hills is achievable, but even with an empty car it can feel a little underwhelming.
Steering is light, but the car feels solidly planted in most situations. Handling isn’t as dynamic as a Kia Carnival and the M8 can feel a touch ungainly through bends, though it’s more than manageable for everyday driving.
Ride comfort is high, especially for passengers, due to forgiving suspension and a cabin that doesn't let a whole lot of road or wind noise in. The M8 is a comfortable cruiser.
Visibility is surprisingly good for a 5.2m-long vehicle with minimal blind spots from the driver’s seat. The bonnet and dash, however, stretch further than they appear, which can make judging the nose a little tricky at first.
Ground clearance is only 143mm, so it’s easy to scrape the nose over speed bumps or when parking. The 360-degree camera system is decent, but manoeuvring into tight spaces still requires some care as it fills out a space. You also have to leave about a metre of clearance behind you if you want to open the tailgate.
Every new Tiguan gets the full array of modern active safety kit, including freeway-speed auto emergency braking with vulnerable road-user protections and intersection features, lane-keep assist, blind-spot monitoring, both rear and front cross traffic alert, a 360-degree parking camera suite, driver attention alert, traffic sign recognition, adaptive cruise control and exit warning.
It also features an emergency assist feature, and there’s a suite of nine airbags, including a centre airbag. VW is anticipating a maximum five-star ANCAP rating, although at the time we put this review together, the SUV’s score was yet to be released.
The M8 hasn’t been tested with ANCAP yet and is unrated but it has a good suite of safety equipment including seven airbags with the curtain airbags covering all three rows but unique for the class is another airbag across the rear windscreen. However, it misses out on a front centre airbag., which is a strange omission now.
Standard equipment includes big-ticket systems like blind-spot monitoring, autonomous emergency braking, forward collision warning, lane keeping aid, lane departure warning, traffic sign recognition, rear cross-traffic alert and a clear 360-degree view camera system with front and rear parking sensors.
There is a sound alert and driver seat vibration that activates for some systems which I found to be a good addition. There’s also four ISOFIX child seat mounts (two in each rear row) and a total of five top-tether anchor points. While the M8 has adaptive cruise control, it’s not well-calibrated and creates a middling on-road experience.
Volkswagen offers the Tiguan with its usual five-year/unlimited-kilometre warranty. While this is still the prevailing standard, the warranty wars are back with more manufacturers pushing into the seven-to-10-year category.
The Tiguan requires servicing once every 12 months or 15,000km, although pricing for the service packages was yet to be revealed at the time we put this review together.
The GAC M8 is backed by a seven-year, unlimited-kilometre warranty, along with five years' complimentary roadside assistance, which is competitive against several of its nearest rivals. Service pricing has yet to be confirmed, though servicing is scheduled at 12-month or 15,000km intervals.
For now, the service network is limited, with around 10 centres nationwide, though GAC offers authorised servicing through third-party providers such as MyCar, which helps broaden access in the short term.