Volkswagen Tiguan vs Volvo XC90

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.

It’s a credit to Volvo that the XC90 feels like a new car, even with its older underpinnings. This latest update has successfully addressed areas that needed the most attention, namely the multimedia system, interior and exterior design. The electric driving range now feels somewhat old school compared to the numbers some manufacturers can achieve these days. A lot of PHEVs now exceed 100km EV range and buyers are starting to expect that. And setting up the third row takes way too much effort to want to do it regularly. The new Volvo XC90 is a comfortable, engaging and properly premium family SUV and the updates have only improved what was already a solid offering.

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.

Back in early 2015, I attended the international launch of the second-generation Volvo XC90. At the time I thought it was a handsome SUV, with Volvo successfully interpreting what is essentially a big people-hauling box on wheels with typical Scandinavian flair.

There’s been a facelift since then, but this latest refresh brings the XC90 bang up to date.

New elements include a modern take on the 'Thor's Hammer' LED headlights, and a new bonnet and grille with an updated diagonal logo spread across the car's face. At the rear the only change is slightly darker tail-lights.

The new grille in particular looks great, and with all of the blacked-out elements of the T8 - grille, lower air intakes, parts of the apron, mirror caps, roof rails and window surrounds - it looks quite cool, especially contrasted with the test car's 'Crystal White' paint. It has elevated the overall look.

Inside, Volvo has made big changes, mostly with the dash and console. It retains the familiarity of other Volvos, but is much more in keeping with its new all-electric EX90 sibling.

It still has a horizontal theme, but with cool new vertical air vents. The new multimedia screen fits well into the dash layout, and isn’t over sized. It’s the ideal size at 11.2 inches. There are a few buttons underneath but not many.

The mix of materials used at the front of the cabin includes ‘Grey Ash’ wood, piano black, chrome, metal-look speakers, grey fabric and soft touch as well as hard plastics. It sounds like it would be too much but it works well.

Volvo has always been a leader when it comes to car seats and the new XC90 is no exception. The beautifully designed ventilated charcoal Nappa leather seats look and feel stunning. The tiny Swedish flag is a nice touch, too.

The engine start/stop button and the crystal selector add a touch of glamour to the cabin. Overall, the XC90 feels properly premium inside, still with a Scandinavian bent. Just lovely.

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.

Any dedicated seven-seat family SUV needs to nail practicality and when it comes to the Volvo XC90, there are clear pros and some surprising cons.

One of the many pros is the seats. As mentioned, they look schmick, but are also supremely comfortable and offer the perfect level of bolstering and support. The T8 has a seat adjustment memory function that can be programmed into the driver profiles that also tailors other functions to suit different drivers.

The quality of the materials and build quality of the cabin is largely impressive. Even the damping of the indicator stalk has a feeling of high-end quality.

Volvo’s digital instrument cluster is clear and easy to navigate, once you work out what the buttons on the steering wheel do. They don’t have words on them so it takes a while. The driver’s manual comes in handy for this.

The big story in the cabin is the new 11.2-inch multimedia display. Volvo uses a Google platform and the car comes with Google Services which includes Google Assistant voice control, Maps and Play.

I’m a fan of Apple CarPlay and once I have assessed a car’s in-house multimedia system I often defer to CarPlay. It’s simple and familiar. But aside from using CarPlay to connect once, I used Volvo’s system for the vast majority of my time with this car.

Logging into your Google account means your favourites come up on the map and there is no downside to functionality. If I had the car for longer I would've added Spotify to the system and logged into that, too, but I was happy listening to digital radio on the phenomenal 19-speaker Bowers & Wilkins sound system.

The screen takes some familiarisation, but once you understand the home keys and how to switch between apps, it’s a pleasure to use. It has a clear layout, nice graphics and is responsive. Yes, the air con controls are mostly housed in the screen, but if you tap the lower part of the screen the entire climate menu appears. It is light years ahead of Volvo’s previous screen set-up.

Most functions are housed in the screen, although there are buttons just under the screen for volume and audio on/off, front and rear demisters, hazard lights and a button to open the glove box.

Storage up front is just okay. The console houses shallow cupholders and a handy upright phone holder, as well as the device charging pad. It’s a shame there’s no under console storage, but the transmission tunnel might be too chunky for that.

The shallow central bin houses two USB-C ports and a 12-volt outlet. Bottle storage is decent in the front door cards.

The panoramic sunroof only has a sheer blind (it’s powered) which is less than ideal in a country like Australia. It’s been fine in winter but I’m curious to know what it’s like in the height of summer.

The second row features manual window blinds to keep your little ones cool.

There’s some back support for the second-row seats but the base is flat. Some of the seat fabric in that row looks like it doesn’t quite fit, but I think that’s the nature of the leather with the intricate designs.

In terms of space, there’s ample leg, toe and headroom, and the rear backrests recline for extra comfort on long trips. The bases roll forward and back and the seats are split 40/20/40.

Kids will likely fight over who has to sit in the middle seat because the combination of an intrusive transmission tunnel and the rear of the front centre console protruding into the space means it is not a great seat.

Occupants have access to chest and knee-level air vents, heated seat and digital climate controls, map pockets, two USB-C ports and a central fold-down armrest with a fiddly cupholder mechanism. The rear doors will only house small, narrow bottles.

Accessing the third row of the Volvo is challenging. For starters, to move the second row seats forward you need to use the lever at the top of the seat and the roller under the base to move them. And they are heavy seats. That leaves just enough of an aperture to get into the third row.

But first you have to raise the third row. Sadly there’s no lever in the boot area to quickly raise or lower the third-row seats. You have to either climb into the boot and reach for the lever at the top of the seats, or reach through the back door and try and raise them that way. And again, they are heavy.

It is a deeply unintuitive system and leaves you exhausted and frustrated. Especially when you consider other seven seaters have a much more functional and lightweight third-row arrangement.

Once in the third row, it’s clear it is for humans with tiny legs only. It is not a space appropriate for six-foot tall men like me, even for short distances. You do get ample headroom, air vents, cupholders and storage boxes on either side that open up to show a kid-friendly spider web design with a friendly looking spider. Cute!

The seats fold flat into the boot floor and the loading lip is level with the floor so loading heavy or long items should be a breeze. You can adjust the air suspension from the boot to lower the height further which is always a handy feature.

It comes with a solid cargo blind but you need to remove it if you want to raise the third row. When putting it back in, it catches on the third-row seat belts, so it’s not the best design.

In terms of boot features, the Volvo comes with a household charging cable that is housed neatly under the boot floor in a stylish bag. Many PHEVs and EVs still don’t have a dedicated spot to house a cable so you have to take up boot space with a chunky cable bag. Good job, Volvo.

It has a powered tailgate, a few nooks and a pair of 5.0kg hooks. However, it doesn’t have a spare wheel of any description. Just a tyre repair kit. This is due to packaging restrictions, but it’s never an ideal solution.

In terms of space, the Volvo can swallow 640 litres of cargo with the second row up and 301L with all three rows in place. That latter figure isn’t bad compared to some seven-seaters.

The pre-update XC90 soldiered on for 10 years and Volvo has, at various points, offered multiple powertrains, including a diesel. Not anymore.

Volvo now offers just two distinct powertrain grades for the XC90, the B5 Bright mild-hybrid from $104,990, before on-road costs, while the T8 plug-in hybrid I am testing tops the range at $130,990.

There’s an increase in cost over the pre-update versions of about $5000 for the B5 Bright and $2600 for the T8 PHEV, but the XC90 remains more affordable than rivals like the Audi Q7, BMW X5 and Mercedes-Benz GLE for equivalent grades.

On top of that, the Volvo is the only dedicated seven-seat premium plug-in hybrid SUV on the market.

The B5 Bright comes standard with a decent amount of gear including Google Services, keyless entry, a power tailgate, 12.0-inch digital driver’s display, wireless charging, powered front seats with heating, cooling and memory functions, wired Apple CarPlay and a new 11.2-inch digital touchscreen with over-the-air updates.

It also gets four-zone climate control, heated rear seats, a 360-degree camera and a crystal gear shifter by Orrefors.

Step up to the T8 PHEV and you gain a 19-speaker Bowers and Wilkins audio system, a panoramic sunroof, heated steering wheel and more.

There is a lot of standard gear packed into both XC90 grades. It can’t match the value of rivals like the Lexus RX and Genesis GV80 but it offers better value than some of those European rivals.

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).

Two powertrains are available in the new XC90, both with all-wheel drive.

The B5 Bright comes with a 2.0-litre four-cylinder turbo-petrol engine with 48-volt mild hybrid assistance offering 183kW of power and 350Nm of torque. It can dash from zero to 100km/h in 7.7 seconds.

The version I’m testing has a 233kW, 2.0-litre four-cylinder turbo-petrol engine with a plug-in hybrid system that uses a 107kW electric motor and an 18.8kWh, 400-volt battery.

The total system output for the T8 PHEV is 340kW and a meaty 709Nm. It uses an eight-speed automatic transmission. It can complete the 0-100km/h sprint in a brisk 5.3 seconds.

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 mild-hybrid XC90 B5 Bright has an official fuel use figure of 8.1 litres per 100 kilometres, which is on the thirsty side, although it is a 2.5-tonne SUV.

Officially, the XC90 T8 Plug In Hybrid sips just 1.8L/100km on the combined (urban/extra-urban) cycle, but as with any PHEVs, unless you charge your car religiously and never drive far enough to deplete the battery, that figure is extremely hard to achieve.

I charged the car regularly using my home wall charger (two to three hours for a full charge) and the fuel gauge barely moved.

After a week of mixed driving my final fuel economy figure was 3.4 litres per 100km, which isn’t too bad.

The XC90 T8 has a 3.6kW onboard charger and a Type 2 plug so it’s only capable of AC charging. It is not compatible with a DC source so no fast charging on the go.

The official electric driving range according to Volvo is 77km, which feels a little old school compared to the many PHEVs landing on the market now that have an EV driving range in excess of 100km.

The offical figure also seems somewhat optimistic because the most I got on a full charge was 60km. Anecdotally, I have heard it can get up to 70km after a charge, it just didn't get there in my time with the XC90.

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.

For a tall, large and heavy SUV, the XC90 has an excellent driving position. You feel hunkered down in the driver’s seat; it’s almost sporty!

Those healthy power and torque figures translate well on the road. It is properly quick off the mark and picks up pace rapidly when already at speed. You do need to work out the trigger point for the accelerator because if you give it too much it feels a little like a slingshot.

The transition between the electric motor and the petrol engine is noticeable, but it’s still smooth. It’s not harsh or clunky like some hybrids and PHEVs. Similarly, the eight-speed transmission is so smooth it rarely makes its presence felt. It's a lovely match for this powertrain.

On that, the cabin is incredibly well insulated. It’s a hushed ride at any speed. Again, you’ll hear the engine kick in but it has a nice note so that noise is welcome.

The powertrain has several driving modes including 'Pure' (EV only), 'Power' (for added performance) and 'Hybrid'. Hybrid is the go-to and 'Auto' allows the system to determine when the petrol engine kicks in. This is the best everyday mode.

Volvo understands the XC90 is more than just family transport and has engineered it in such a way that it offers a surprising level of dynamism.

It’s flatter in corners and bends than you expect of a car of this size and weight. It has a balanced chassis, likely helped by the air suspension, with minimal body roll and little lateral movement inside. Impressive.

It has enough grip on looser surfaces, aided by the all-wheel drive set-up.

The ride quality is more composed and refined at higher speeds, regardless of the road conditions, managing potholes and the like quite well. Volvo has tweaked the suspension tune as part of the update for this very reason.

At lower urban speeds, it’s not quite as calm. You’ll feel speed bumps and potholes and it's a little jiggly on rough surfaces. The low profile (275/35 R22) tyres are partly to blame here.

With that said, it’s not enough to dampen the overall XC90 drive experience. It is a lovely car to drive, whether cruising on freeways, country road blasts or city commuting.

Its underpinnings might be 10 years old, but the XC90 feels as fresh to drive as many of its rivals.

Volvo’s reputation for safety is hard to beat, so as expected the XC90 comes with a solid list of standard safety gear.

The safety tech includes auto emergency braking (AEB) with pedestrian, vehicle and cyclist detection, low-speed rear AEB, blind-spot monitoring with a cross-traffic alert and a ‘Run-off road Mitigation system’ that uses steering and braking to edge you back into the lane.

It also gets a front and rear collision warning, traffic jam assist, adaptive cruise control, lane keeping aid, tyre pressure monitoring, post-impact braking, an adjustable speed limiter and more.

One thing it doesn’t have is an ANCAP crash safety rating. It was awarded a maximum five stars back in 2015 but that rating has expired and Volvo says there are no plans for the car to be re-tested.

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 XC90 is covered by Volvo’s five-year, unlimited kilometre warranty, and the servicing schedule is every 12 months or 15,000km, whichever comes first. These are similar terms to other premium brands in Australia.

Buyers can opt for one of two capped-price servicing packs, costing $2380 for three years and $3870 for five years.

This pricing is a little more than the BMW X5 but quite a bit more affordable than the Mercedes-Benz GLE.

The Swedish brand used to have a reputation for over-priced servicing but it’s sharpened up its offer considerably in recent years.

Volvo has around 40 dealerships located across Australia and conducts its servicing in-house at the dealer.