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.
Brand Finance self-effacingly describes itself as "the world's leading independent branded business valuation and strategy consultancy". And adds that it regularly picks apart the current and future value of more than 3500 brands across multiple market sectors around the world.
These London-based boffins reckon Delta trumps American Airlines, Real Madrid has knocked off Manchester United, and Haval is a more powerful SUV brand than Land Rover or Jeep. So, no surprise Haval promotes the research on its Australian website.
Just to split hairs, Land Rover leaps to the top of the rankings when it comes to overall value, but in terms of an upward trajectory and potential for future growth, Brand Finance says Haval is the one.
The irony is you probably wouldn't know a Haval if it ran into you, which obviously isn't good in any sense, but a factor of the Chinese Great Wall subsidiary's relatively brief time, and so far, limited sales in the Australian market.
One of three models released in late 2015 to launch the Haval brand locally, the H2 is a small, five-seat SUV competing against a hot bed of more than 20 established players including the segment-leading Mitsubishi ASX, ever-popular Mazda CX-3, and recently arrived Hyundai Kona.
So, is Haval's potential reflected in its current product offering? We spent a week living with the sharply priced H2 City to 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.
How you define value will determine whether the Haval H2 City is the right small SUV for you. In terms of metal for money it delivers heaps of space, a reasonable standard features list and adequate safety. But it's let down by mediocre performance, sub-par dynamics and a surprising thirst for (premium) unleaded. Brand Finance may rank Haval high on the power index, but the product needs to climb a few rungs higher before that potential's realised.
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.
Inoffensive but uninspiring is a blunt yet fair summation of the Haval H2 City's exterior design, especially when you think about rivals like the dramatic Toyota C-HR, edgy Hyundai Kona, or funky Mitsubishi Eclipse Cross.
The nose is dominated by a huge, slatted and chromed grille with bright metal mesh behind it, and vaguely Audi-of-10-years-ago shaped headlights either side.
The lighting treatment is elaborate with projector halogen main beams and reflector halogen high-beam units surrounded by a dotted-line string of LEDs looking uncomfortably like aftermarket inserts available via your online auction site of choice.
Standard fog-lights are recessed into a blacked-out area under the bumper, with another line of LEDs, functioning as DRLs, below that. And just to complicate matters, the upper LEDs only illuminate with the headlights, while the lower units come to life when the headlights are off.
A sharp character line runs along the H2's flanks from the trailing edge of the headlights to the tail, with an equally distinct swage line running from front to back, narrowing the car's mid-section and accentuating the bulge of its wheelarches, filled adequately by standard 18-inch multi-spoke alloy rims.
The rear is similarly reserved, the only hint of flash confined to a roof-top spoiler, cool typeface chosen for the prominent Haval badging across the hatch door, and a diffuser with chrome exhaust tips poking through either side.
Inside, the look and feel is early noughties plain, The dashtop is a nice soft-touch material, but there are lots of buttons and old-school analogue instruments combined with a media and ventilation interface that might have been acceptable on a mainstream model 20 years ago.
Don't even think about Android Auto or Apple CarPlay. The tiny LCD screen (sitting below a CD slot) wins the smallest, most basic graphics award. A miniscule scale reflecting the manual air-con's temperature setting is a particular low-light.
A small 3.5-inch screen between the tacho and speedometer displays fuel economy and distance information, but frustratingly no digital speed read-out. Standard cloth trim has a distinctly synthetic but tough feel, while the polyurethane plastic steering wheel is another throwback.
Sure, we're at the budget end of the market here, but be prepared for low-tech design combined with cheap and cheerful execution.
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.
At 4.3m long, 1.8m wide, and just under 1.7m high the Haval H2 is a big small SUV, and there's plenty of room inside.
Up front, storage runs to a bin (with sliding top) between the seats, two large cupholders in the centre console and a lidded oddments tray in front of the gearshift, as well as a sunglass holder, average-sized glove box and door bins with room for bottles. You'll notice the pennies saved with non-illumination of the sunvisor vanity mirrors.
Rear seat passengers pick up generous head, leg, and importantly, shoulder room. Three large adults across the back will be tight but do-able for short trips. Kids and young teenagers, no problem.
A centre fold-down armrest houses neatly integrated dual-cupholders, there are bins with space for bottles in each door and map pockets on the front seat backs. No adjustable air vents for backseaters, though.
Connectivity and power runs to two 12-volt outlets, a USB-A port and an 'aux-in' jack, all in the front.
Although a strong seller in the small SUV segment, the Mazda3's Achilles heel is its modest 264-litre boot, and while the H2 exceeds that number, it's not by much.
The Haval's 300-litre capacity is way less than the Honda HR-V (437 litres), Toyota C-HR (377 litres) and Hyundai Kona (361 litres). But it's enough to swallow the bulky CarsGuide pram or three-piece hard suitcase set (35, 68 and 105 litres), and (as with all contenders in the segment) a 60/40 split-fold rear seat increases flexibility and volume.
If you're into towing, the H2's limited to 750kg for an un-braked trailer and 1200kg braked, and the spare tyre is a full-size (18-inch) steel rim shod with narrower space-saving (155/85) rubber.
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.
At the time of publication, the Haval H2 City was carrying a drive-away price tag - $19,990 for the six-speed manual version and $20,990 for the six-speed auto (as tested here).
So, you're getting a lot of metal and interior space for your money, but what about the standard features taken for granted in the H2's main competitors?
Included in that drive-away price are the 18-inch alloys, keyless entry and start, reverse parking sensors, (manual) air-conditioning, cruise control, front and rear fog lights, LED daytime running lights, ambient interior lighting, heated front seats, rear privacy glass, and cloth trim.
But the headlights are halogen, the audio is four-speaker (with Bluetooth and single CD player), the safety tech (covered in the Safety section below) is relatively basic, and 'our' car's 'Pewter' (silver metallic) paint is a $495 option.
Equivalent entry-level competitors from Honda, Hyundai, Mazda, Mitsubishi and Toyota will set you back between five and $10k more than this H2. And if you're happy to live without features like a media touchscreen, digital radio, leather accented wheel and gearshift, rear air vents, reversing camera, etc, etc, etc, you're onto a winner.
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).
The Haval H2 City (as tested) is powered by a 1.5-litre direct-injection, turbo-petrol, four-cylinder engine driving the front wheels through a six-speed automatic transmission.
Peak power (110kW) arrives at 5600rpm, with maximum torque (210Nm) delivered at 2200rpm.
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.
Claimed fuel economy for the combined (ADR 81/02 - urban, extra-urban) cycle is 9.0L/100km, the 1.5-litre turbo four emitting 208g/km of CO2 in the process.
Not exactly outstanding, and over roughly 250km of city, suburban and freeway running we recorded 10.8L/100km (at the bowser).
Another rude surprise is the fact the H2 requires 95 RON premium unleaded fuel, of which you'll need 55 litres to fill the tank.
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.
Cold weather and internal-combustion engines are usually firm friends. Lower ambient temperature means denser air entering the cylinder (even under the extra pressure of a turbo), and as long as more fuel arrives at the same time, you'll have a bigger bang and more power.
But the H2 City's 1.5-litre four must have missed the memo, because cool morning start-ups result in a distinct reluctance to proceed at normal pace.
Sure, there's forward motion, but pinning the right-hand pedal to the floor won't shift the speedo needle much above a brisk walking pace. Unsettling.
Even after a few minutes, when things settle into a more predictable pattern, this Haval hovers at the sluggish end of the performance spectrum.
Not that any of the compact SUVs it competes with are rocketships, but you can generally expect a turbo-petrol engine to serve up a decent dose of low-down grunt.
However, with a maximum output of 210Nm delivered at a relatively high 2200rpm the 1.5-tonne H2 won't be threatening the land speed record anytime soon.
Suspension is strut front, multi-link rear, with the H2 City riding on (235/55x18) Kumho Solus KL21 rubber, and on typically pock-marked and bumpy urban roads ride quality could be better.
The steering displays some nervousness on centre, which combines with a lack of road feel and a mildly disconcerting top-heavy sensation in cornering. It's not that the car lurches or suffers from too much body roll; more that something isn't quite right in the front-end geometry.
On the upside, although firm, the front seats are comfortable, the exterior mirrors are nice and big, overall noise levels are moderate, and the brakes (vented disc front / solid disc rear) are reassuringly progressive.
On the downside, the media system (such as it is) is woeful. Plug your mobile device (mine's an iPhone 7) into the car's single USB port and you'll be met by a 'Loading-USB error' message, the heating and ventilation read-outs on the letterbox slot screen are a joke, and to top it all, select reverse and the audio cuts out altogether.
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.
In terms of active safety the H2 City ticks the 'cost-of-entry' boxes, including ABS, BA, EBD, ESP, rear parking senors, tyre-pressure monitoring and emergency brake hazard lighting.
But forget about more recent systems like AEB, lane keeping assistance, blind spot monitoring, cross traffic alerts or adaptive cruise. And you don't get a reversing camera.
If a crash is unavoidable the airbag count runs to six (dual front, dual front side, and dual curtain). And there are three child restraint/baby capsule top tether points across the back seat, with ISOFIX anchors on the outer two positions.
The Haval H2 scored a maximum five-star ANCAP rating in late 2017, a rank it would not replicate when assessed against 2019's more challenging criteria.
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.
Haval covers all new cars it sells in Australia with a seven year/unlimited km warranty with 24-hour roadside assistance provided for five years/100,000km.
That's a strong statement from the brand, and well ahead of the major players in the mainstream market.
Service is recommended every 12 months/10,000km, and no capped-price servicing program is currently in place.