Volkswagen Tiguan vs Volvo XC60

What's the difference?

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 facelifted Volvo XC60 Ultra B5 Dark is the car at school pick-up that doesn’t need to brag. It just gets on with things and it looks good doing it. It offers a strong mix of family-focused features, comfortable and composed road manners and thoughtful practicality throughout the cabin.

The updated media system is crisp and responsive, though it could use a few tweaks to be truly intuitive. Overall, the XC60 mild-hybrid remains a solid choice for families who value understated luxury, comfort and safety over flash. It doesn’t reinvent the wheel, but it does what it does well.

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 XC60 has a graceful, poised curbside presence. Its wide stance and smooth body panels give it a confident silhouette, while the redesigned grille with dark accents, integrated intake vents (both faux and real), and those sharp 'Hammer of Thor' headlights tie it all together. It’s not trying to be sexy, but it is undeniably handsome. It's the kind of SUV that turns heads quietly rather than shouting for attention.

Inside, the vibe is pure Scandi chic. There’s a refreshing lack of plasticky surfaces, with everything feeling solid and premium to the touch. The supple Nappa leather seats and expansive panoramic sunroof instantly make the cabin feel airy and refined.

Taking centre stage on the dash is a new 11.2-inch portrait-style media display. The layout is a little too reminiscent of an oversized iPad for my taste, but the crisp graphics and quick touch response are big pluses. Adding a touch of craftsmanship, the crystal Orrefors gear shifter and genuine driftwood inlays across the dash and centre console bring warmth and texture you don’t find in most rivals.

Is this facelift breaking new ground? Not really. But then, it doesn’t need to. Volvo has long been firmly planted in the premium end of the field and this update simply shows it's still cultivating all the right qualities.

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 XC60 is spacious without being sprawling. The front row is the sweet spot for comfort, with generous leg and headroom plus ergonomic seats that offer excellent under-thigh and side-bolster support. They also bring the luxury of heating, ventilation and even massage functions.

The rear row uses firmer padding, and while the backrest looks fairly flat, it’s deceptively supportive. Adults should be comfortable back there on longer journeys. Access is only slightly compromised by the wheel arch eating into the rear aperture, but otherwise it’s an easy SUV to get in and out of. My eight-year old pointed out that the rear doors are on the heavy side, though, and often need a good slam to latch properly.

Storage is well thought out throughout the cabin. Up front you get a decent glove box, cupholders, drink bottle holders, door bins, a dedicated phone tray that doubles as the wireless charging pad and a shallow centre console with two USB-C ports. One niggle. The cupholders don’t grip cups as snugly as they should.

The rear row has a 60/40 split with a 'ski-port' door and a fold-down armrest. And in the back, there are door bins with bottle holders, a fold-down armrest with cupholders and net map pockets. Rear passengers are also spoiled with dual-zone climate control, four directional air vents and two more USB-C ports.

One of the XC60’s best family-friendly features is the integrated booster seats, which have two height settings and fold neatly back into the base when not in use. They’re a lifesaver if you have kids who feel like they've 'aged out' of car seats but aren’t quite tall enough to go without. Of course, there are also ISOFIX mounts and three top-tether points if you still need to install child seats.

Out back, the boot offers a flat loading space, a powered tailgate with kick function and a healthy 613L of storage with all seats up (up to 1543L when the rear row is folded). You also get a 12-volt socket, a proper temporary spare tyre, and if you’ve got the optional air suspension (as per our test model) you can raise or lower the boot height for easier loading.

Tech usability is a bit of a mixed bag. The new 11.2-inch media display is sharp and responsive, and it comes pre-loaded with Google apps like Maps, Spotify and Assistant. But the Apple CarPlay and Android Auto isn't wireless, which feels like a miss at this price point.

The Bluetooth is patchy, with calls and music sometimes not syncing properly. A wired connection works better, especially for my iPhone 15 Pro Max, but I'm not a fan of leaving my phone on charge all the time. If you’re already familiar with Volvo or Polestar’s system, you’ll feel at home, but first-timers may need a little time to adjust.

There are two mild-hybrid variants in the XC60 line-up, and the one we’re driving here is the flagship Ultra B5 Dark. Priced at $81,990, before on-roads, it costs about $7000 more than the entry-level Plus B5 Bright, but that premium buys you a longer list of included features that makes the Ultra Dark feel like the sweet spot of the range. Especially considering Volvo also offers two plug-in hybrid XC60s, but those command up to $20K more!

In terms of market rivals, the XC60 sits right in the middle. The Audi Q5 TFSI starts at $81,000, while the Lexus NX 350h Sports Luxury AWD asks $87,900, both before on-road costs.

Standard equipment is generous. The Ultra Dark gets a panoramic sunroof and Nappa leather upholstery, with the electric front seats offering heating and ventilation functions plus a heated steering wheel for winter comfort. There's a 360-degree view camera system with surrounding parking sensors and a park-assist feature.

Tech upgrades include a new 11.2-inch media display with in-built navigation, Google apps, and wired Apple CarPlay/Android Auto, backed up by four USB-C ports, a 12-volt socket and a wireless charging pad. There's also a Volvo phone app, which allows users to pre-condition the climate prior to entry, have a digital key and program the spare key for any kids who might want to borrow the car!

Families will appreciate the thoughtful touches like a powered tailgate with kick function, built-in child booster seats in the rear row, a temporary spare tyre (a welcome feature), four-zone climate control and lots of storage throughout the cabin. Keyless entry sensors on every door add another layer of convenience.

Our test car was also fitted with just over $5000 worth of options, including the Bowers & Wilkins premium sound system, active air suspension, tinted rear windows, and even front seat massage functions. When you consider that many rivals charge extra for equipment that comes standard here, the XC60 Ultra B5 Dark makes a strong case for itself on value.

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 Ultra B5 Dark tested here is all-wheel drive and has a 2.0-litre, four-cylinder, turbo-petrol mild-hybrid engine. It produces up to 183kW of power and 350Nm of torque.

The 'mild hybrid' tag comes from a 48-volt system paired with an integrated starter-generator. It’s not a full hybrid, so you won’t be gliding around silently on electric power alone, but it helps smooth out stop-start driving, boost efficiency and add a little extra shove when you put your foot down.

The result is an engine that feels lively in the city and confident out on the open road, with enough in reserve to make overtaking stress-free.

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.

Volvo claims combined cycle (urban/extra-urban) fuel use of 7.6L/100km for the XC60 Ultra B5 Dark, which isn’t bad for a turbo-petrol but reminds you that this is only a mild hybrid. With a 71-litre fuel tank, you’re looking at a theoretical driving range of up to 934km which is great for a family SUV likely to see its fair share of school runs and road trips.

In my real-world testing, which included plenty of urban driving with one longer trip in the mix, I averaged 8.6L/100km. That’s a little higher than the claim, but still a respectable result overall.

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.

There’s plenty of power on tap, with enough left in reserve when you really need to push it. Around town, the XC60 keeps up with traffic effortlessly, and out on the highway it never feels strained. The transmission is fairly punctual with its shifts, though you do need to drive it a little more assertively to avoid any lag when accelerating from a stop.

Visibility is excellent thanks to the big, wide windows and higher driving position. It’s also refreshing to have a wide rear window behind the C-pillar as it's something not all rivals manage.

On the road, the XC60 feels composed and comfortable. The cabin stays quiet even at highway speeds and the suspension soaks up the worst bumps without ever feeling floaty or disconnected. Handling is equally predictable, with steering and dynamics that feel natural and reassuring. Take a sharp corner at speed and you will notice a slight loss of composure but it rights itself quickly.

Day to day it’s also very car park friendly. Parking sensors and the 360-degree camera view make manoeuvring simple, though the video feed looks a little blurry at the edges. A more seamless stitch between camera angles would improve the presentation, but functionally it gets the job done.

While the 2026 Volvo XC60 hasn’t undergone ANCAP testing yet, it continues Volvo’s long-standing reputation for safety with a comprehensive suite of features. Standard equipment includes autonomous emergency braking, blind-spot monitoring, lane keeping aid, lane departure warning, rear cross-traffic alert, front and rear collision warning, traffic sign recognition, driver attention warning and seven airbags - basically covering all of the essentials.

For families, there are integrated booster seats in the rear row, ISOFIX child seat mounts, and three top-tether anchor points. A stand-out feature is the programmable spare key, which is colour-coded in bright orange and allows you to set speed and speaker-volume limits. Which is ideal for nervous parents who share the car with teens or other young drivers.

Other practical safety touches include a protective first-aid kit and warning triangle, adaptive cruise control with stop/go function, parking assist, surrounding parking sensors and a 360-degree camera system.

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 XC60 is covered by a standard five-year/unlimited-km warranty, which is okay for its class, especially at the premium end. You can pre-purchase either a three- or five-year 'Volvo Genuine Service Plan'. The five-year plan will set you back $3870, which is steeper than many rivals, though Volvo sweetens the deal with five years' complimentary roadside assistance. Services are spaced at every 12 months or 15,000 km, whichever comes first.

One thing for regional owners to keep in mind, while Volvo has a decent retail footprint, there are only 34 Volvo service centres in Australia. Depending on where you live, that can mean a long drive. In my case, the nearest Volvo service centre is almost two hours away. That adds travel time and inconvenience for regular maintenance or unscheduled work.