What's the difference?
It’s big, it’s fast, it’s luxurious, Volkswagen’s Touareg has always been a stand-out large SUV.
This one, the full-fat R is the latest take on the halo Volkswagen model. It has big shoes to fill.
See, top-spec Touaregs in the past are hardly rivals to the Toyota LandCruisers and Hyundai Palisades of this world. They’re a different breed, with the first-generation Touareg powered by a variety of engines up to a 5.0-litre turbo-diesel V10, and the second-gen version packing petrol and diesel V8s in its upper levels.
They were the ultimate sleeper family SUV, ridiculous engines with rich VW Group lineage in a seemingly mainstream family-friendly package.
But this third-generation version can’t quite replicate the over-engined craziness of its predecessors. It has to think outside the box as emissions regulations crack down the world over.
This Touareg R is a plug-in hybrid. A performance-focused one at that. Can it hope to replicate the unhinged nature of its forebears and find an appropriate place atop the hierarchy of Volkswagen’s R models? Let’s find out.
Replacing a popular model is fraught with danger. Existing customers will tell you they love it, while focus groups of non-customers will tell you why they hate it and sometimes carmakers get caught trying to appease both groups.
Sometimes they’ll make it too big or change too much in the search for more sales and ultimately end up removing the elements that made it popular in the first place.
Which is why Audi has been extra careful with some subtle evolution for this new-generation Q3 SUV and Sportback. This isn’t just a popular model for Audi Australia, it has been the best-selling model for the German brand for more than five years, so getting it wrong would be a disaster.
A car as impressive as it is frustrating, the Touareg R is a vehicle for a very specific buyer. Someone whose daily commute consists of limited distances, someone who can always charge at home overnight and someone who appreciates the subtlety of the performance and luxury the Touareg brings.
For everyone else - there are better options. Performance-focused PHEVs can be tricky to charge and extract the full benefit from, and at this price you have access to some serious performance-oriented combustion SUVs or the choice of going fully electric.
While this R-badged VW might be the most mind-bending of the lot then, it also has the most 'specific' appeal.
So is this new Q3 good enough to remain Audi’s number one choice? In a word, yes.
Audi has resisted the temptation that some brands fall into by making too many changes to a proven sales performer. This new Q3 isn’t radically different from the old Q3, but it has improved in almost every way.
It isn’t different enough to widely expand its appeal to a new wave of customers, but there’s no reason it won’t remain Audi’s most popular choice for the foreseeable future.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
The Touareg, as always, screams big Volkswagen. It’s more subtle than the Porsche Cayenne and Audi Q7 with which it shares its underpinnings, yet looks as slick as either up close.
It’s defined in its face by a massive black grille, integrated light fittings, and as usual with Volkswagen, some pretty subtle highlights and tail-lights in attractive LED patterns.
The wheels sell the vibe of an R. They’re enormous and gloss black, matching the theme and style of its smaller siblings, black highlight trims replace chrome or body colour bits to set it apart from the rest of the range.
It doesn’t look quite as modern as something like Kia’s Sorento or EV9, and it doesn’t look as elegant as the Volvo XC90 or as defined as the Land Rover Defender, all in the same price bracket.
This helps the Touareg maintain a certain mainstream appeal, and a sporty edge, without being too egregious.
Still, some might want some more overt visual flourish to indicate they’re driving a vehicle which is capable of sprinting to 100km/h from a standstill in 5.1 seconds.
Perhaps I’m in a different camp, one which appreciates the ‘sleeper’ nature of a giant family SUV capable of incredible driving feats when pushed.
Inside is always a pleasant surprise in a Touareg. While it might be the most affordable of the giant SUVs on this platform, it maintains the air of luxury and plush nature of its more expensive counterparts from Audi and Porsche.
You’re met by nicely trimmed leather seats and a chunky VW R steering wheel, massive screens and lavish amounts of padded leather surfaces everywhere. It feels every bit the luxury SUV the price indicates, in case you were worried you’d be getting something which feels more like a T-Roc than an Audi. For what it’s worth I quite like all the Volkswagen switchgear.
The brief to the designers was seemingly pretty simple - don’t mess with a good thing.
According to the company, they want it to be recognisable as an Audi from 100m away, but at the same time, it makes sense not to make any radical changes to a design that is clearly a hit with buyers.
There’s still a new grille, which is slightly larger, while the daytime running lights (DRLs) are now mounted high, on the top corners of the front fascia.
Audi prides itself on its lights and the Q3 features multi-segment DRLS, with dynamic light effects, plus the rear badge lights up red with the tail-lights are turned on.
Digital matrix LEDs are available as an option on the quattro grades, which is a first for such a small Audi. While based on the technology already deployed in the bigger, more expensive Audi models, this is an updated system with micro LED matrix capabilities that are better able to light up the road ahead without blinding cars ahead or oncoming.
One very noticeable element to the design of this new Q3 is the size - which hasn’t really changed. Audi has resisted the temptation that so many brands have to upsize a compact model and has instead retained the same size that buyers clearly find appealing. It is slightly longer, approximately 4cm, but is still unmistakably a Q3 in looks and size.
Inside the Q3 is a different story, with the designers clearly empowered to create more change. The elements remain similar, but there have been more dramatic changes compared to the exterior to keep the Q3 looking contemporary and luxurious.
For example, there are still two large screens, just like the old model, but the virtual cockpit and multimedia screen are integrated into the dashboard together and more prominently, moving higher up the centre fascia.
It works well, as the interior looks and feels premium, and very much an Audi, albeit on a smaller scale.
To cap it off there are four interior colour packages to choose from, plus four different choices for the inlays, including two real wood options and an aluminium trim.
It’s a big SUV with big interior dimensions. It feels spacious and wide on the inside with a large centre console area for spreading out and a highly adjustable driver’s seat.
The seats are plush and comfortable, and visibility is pretty solid out of the cabin. Again, you're greeted by excellent touchpoints, from the steering wheel to the door cards and there’s even lashings of padded leather trim down the sides of the centre console for your knee to rest on.
Volkswagen’s screens are usually some of the best in the business and that continues here. They’re bright, sharp and served up with attractive and mostly functional and easy-to-navigate software.
The hardware behind them is also enough to keep them lightning fast when reacting to inputs, with satisfyingly smooth animations, too.
The one thing I like a bit less is how a few of the menus can be confounding. It took me a while to figure out I needed to set the default battery level higher than its current charge to get the engine to stay on, and I’d also love a button to simply switch between EV and hybrid mode.
In fact, the lack of buttons is one of the major issues in this car. Sure, the enormous centre screen is an impressive feature, syncing up with the dash design nicely, but you’re also forced to negotiate with touch elements for key climate functions. No matter how fast or slick the software is, there’s no compensating for a toggle or dial you can easily reach while you’re focused on the road.
For what it’s worth, the wireless Apple CarPlay worked seamlessly with the car in my time with it (and looked good too) while the wireless charger is rubberised and in a good location so your phone will be able to at least maintain its state of charge on the go.
Storage is plentiful up front, with large pockets with integrated bottle holders in each door, a large dual cupholder set-up in the centre console with variable edges and a large armrest console box.
In the back seat I have enough room for myself behind my own driving position at 182cm tall. It’s plenty wide and tall, but I don’t feel as though I had an enormous amount of legroom considering the size of the vehicle.
Still, the width will give you space for three adults across in relative comfort. Yes, there’s a large raise in the floor in the centre position to accommodate the all-wheel drive hardware underneath, but the width of the floor should allow a centre passenger to put their feet on either side.
Big door openings and the wide cabin make for easy child seat fitting, and there's even built-in window shades alongside two rear climate zones with physical controls, large bottle holders in the doors and a drop-down armrest, with some flimsy nets on the backs of the front seats to round things out.
Boot space is allegedly enormous at a quoted 810 litres, but the shape of it is less than ideal. Sure it’s nice and wide and oblong shaped at the base, but the rake of the boot quickly eats into the amount of height available, making it tricky to fit larger objects.
The space accommodated our CarsGuide three-piece luggage set with ease, but it didn’t leave much room to spare. It doesn’t feel like it’s double the 400 litre space typical of a one size-down SUV.
There’s also a needlessly complex two-piece shelf, which lifts with the tailgate, but the boot wouldn’t completely close with the luggage set present unless you removed it. To the Touareg’s credit, the second row seats hinge forward significantly to expand space by a fair bit.
Under the floor there’s only a repair kit, as the huge PHEV battery takes up the rest of the space. A decidedly less than ideal flat tyre option.
The biggest change to the interior is the technology, with a new multimedia interface with new, larger tiles as well as new ‘Control Unit’ for the key driving functions.
The ‘Virtual Cockpit’ display is much simpler, with a nice, clean look, plus the option to have the satellite image on the screen, whether you’re in navigation or not. The multimedia screen is a good size (12.8 inches) and the menus are easy to navigate. The decision not to have physical controls for the climate control is disappointing, but thankfully there is a volume/on-off dial for the sound system.
The most notable difference is the so-called ‘control unit’ that integrates the indicators, wipers and gear selector on a single ‘bar’ mounted to the steering column. It’s another example of modern cars reinventing something we’ve all become accustomed to, but after a day of driving it quickly becomes second nature to adapt to the slightly different controls.
While it may be the same size, Audi has managed to find more room inside, particularly the rear, by redesigning the door pockets and sculpting out the seat backs. It’s still not the roomiest cabin, but the rear seats will be fine for younger families, couples and singles.
Another plus is the 40:20:40 split/fold rear seats for maximum practicality and adaptability, while all three have child seat anchor points (although if you do have three small children, I wouldn’t be recommending an SUV this size).
As for the boot, because Audi only measures to the top of the seats, it measures 488L in both the SUV and Sportback variants, so you’re not missing out on day-to-day practicality with the sportier-looking roof. However, if you drop the rear seats the cargo capacity expands to 1386L in the SUV but only 1289L in the Sportback.
Is the Touareg R good value? Seems like a silly question doesn’t it?
One school of thought says, of course it isn’t. Nobody needs a giant $129,990 (before on-road costs) SUV which is this fast. What the halo Touareg variant has always offered is excess with a modest exterior wrapper.
On the other hand, the Touareg R is great value when you consider you’re getting much the same hardware as a Porsche Cayenne S E-Hybrid ($188,600) with a Volkswagen badge.
In its size and price-bracket, the Touareg R directly rivals the Land Rover Defender 110 PHEV ($126,184), Lexus RX HEV ($127,434), Range Rover Velar PHEV ($131,536) and Volvo XC90 Ultra T8 PHEV ($128,390).
I see two problems with this. Firstly, all of those price rivals are premium brands, and secondly, at the circa-$130K price-tag there’s also the awkward reality you could be choosing one of a few very appealing fully-electric options, from the Kia EV9 GT-Line ($121,000), to the Polestar 3 ($131,054), Mercedes-Benz EQE ($134,900) and BMW iX ($136,900).
So, it’s great value from one perspective, but not so much from a few others. Then again, this is the biggest, baddest Volkswagen you can currently buy, so whether you’re in the market for an R-badged car or a PHEV of this size, you’re likely familiar with a six-figure price-tag.
Do you at least score good equipment for the money? Aside from all the complex drivetrain hardware, this VW is an impressive place to be, with extensive plush leather interior trim in the seats and doors, power adjust for the front two positions with heating and ventilation, a 12.0-inch digital dash with Volkswagen’s slick-as-ever digital cockpit software, a head-up display, a massive 15.0-inch multimedia touchscreen (with wireless Apple CarPlay and Android Auto), matching wireless phone charger and quad-zone climate control.
Outside, there’s the brand’s signature matrix LED headlights, massive gloss black 22-inch alloy wheels, enormous ventilated disc brakes and a sports exhaust with air suspension hiding below.
It’s a lot of kit for a mainstream SUV, and performance, which we’ll talk about later, is impressive (with a few caveats).
A key to the popularity of the Q3 is the variety of choices available to customers. By offering a mixture of variants at different price points and with different levels of performance expands the appeal of the Q3 to as many potential buyers as possible. To that end there are no less than 10 variants to choose from, and that’s just for now, with more likely to join in the future.
At this stage the range includes both SUV and Sportback body styles, the choice of a 110kW, 150kW or 195kW engine with front- or all-wheel drive (or quattro, as Audi calls it). While still not confirmed, both a plug-in hybrid and a high-performance RS Q3 are both likely additions sometime in the future.
Starting with the 110kW model, standard equipment includes 18-inch alloy wheels, adaptive LED headlights, ambient interior lighting, keyless entry and ignition, leather-appointed upholstery and a 10-speaker sound system. The 110kW SUV is priced from $61,600 and the Sportback from $64,600.
Moving up to the 150kW quattro variant adds adaptive dampers, which the 195kW models also get, as well as 19-inch alloy wheels, and there’s an optional premium Sonos system for the more powerful models and a panoramic glass sunroof and a head-up display as part of a $4400 option package. Pricing for the 150kW begins at $70,200 for the SUV and $72,700 for the Sportback, while the 195kW is priced from $81,900 (SUV) and $84,400 (Sportback).
There’s also a Launch Edition available which adds between $5400 and $4400 to the price (depending on variant), but includes the S line exterior styling package, black exterior highlights, metallic paint, red brake callipers, a sound actuator and adaptive dampers. As the name implies, these are only available for launch of the new model, so will only be produced for the first two months.
It should also be noted that standard 110kW models won’t arrive until mid-year, once the factory in Europe is done producing the Launch Edition variants.
The Touareg offers a performance-focused plug-in hybrid (PHEV) drivetrain. Usually this means a little turbo four-cylinder engine and an electric motor, but instead this big SUV offers a 100kW electric motor and a 3.0-litre V6 turbo-petrol engine which combine for a whomping “total system power” of 340kW/700Nm.
This allows a 0-100km/h sprint time of just 5.1 seconds. Power is sent to all four wheels via an eight-speed automatic transmission and Torsen central differential. Up to 70 per cent of power can be sent to the front wheels, with up to 80 per cent of power going to the rear.
It is capable of driving at up to 135km/h under electric power alone, with the V6 kicking in beyond that speed.
It’s a rare set-up for two reasons. Firstly, it’s a plug in which maintains a large six-cylinder engine, and it runs even electric power through the transmission to all four wheels.
Some PHEV rivals, for example, use front combustion-drive only with no mechanical connection between the engine and the rear axle, which is driven purely electrically.
When it comes to towing specs, the Touareg offers solid official figures of 750kg for an unbraked trailer and 3500kg braked, although the maximum towball download is 220kg.
As mentioned above, there are three powertrains to choose from initially, with talk of a plug-in hybrid and hi-po RS Q3 just that (talk) for now.
The entry-level SUV and Sportback get a new 1.5-litre four-cylinder mild-hybrid, turbocharged petrol engine, which makes 110kW/250Nm and sends all that performance to the road via the front wheels through a seven-speed, dual-clutch automatic transmission.
Next up is the TFSI 150kW quattro, which is a bigger 2.0L turbo-petrol four-cylinder, producing (you guessed it) 150kW and 320Nm. It also has a seven-speed dual clutch but also unsurprisingly has a quattro, aka all-wheel drive.
Finally there’s the TFSI 195kW quattro, which has the same engine but tuned to make 195kW and 400Nm, also with the seven-speed, dual-clutch auto and all-wheel drive.
This is naturally the quickest Q3, at least until the RS Q3 arrives, taking just 5.7 seconds to accelerate 0-100km/h, compared to 9.1 seconds for the 110kW and 7.1 seconds for the 150kW.
Like other plug-in hybrids, the official combined (urban/extra-urban) cycle fuel efficiency number for the Touareg R is an eyebrow-raisingly low figure which you know won’t be achievable in the real world, but is probably technically feasible in lab-style conditions.
In this case, it’s 3.3L/100km. When I picked up the car it had a low charge level, and the next day I was able to top it up to just 50 per cent because I don’t have a power point in my garage, and the achingly slow 3.6kW maximum AC charging speed is severely limiting if you need to rely on the public network, as the 17.9kWh battery is relatively large.
This should bring you to the obvious conclusion the Touareg R is not a good hybrid if you can’t charge at home, as you’ll never extract the full benefit of the electric set-up. Perhaps adding evidence to this is its official energy consumption which comes in at a painful 21.1kWh/100km.
As for hydrocarbons, in my week of driving (in which I tried to pick up charge wherever I could) I saw over 14L/100km. Makes sense for a heavy petrol V6 SUV. I’d say you’re likely to see a figure like this on a longer journey or if you drive it with enthusiasm as the R badge encourages. To add additional pain, it requires 98RON premium unleaded fuel.
With a realistic maximum pure-electric range of closer to 40km compared to the official WLTP-rated 51km (more on this in the driving section of the review), the R is also best for people whose daily commute is relatively short.
I can’t imagine, for example, the best benefit of this car will be extracted from someone who lives in the urban sprawl and commutes to the city every day with distances in excess of 50km for a return journey.
Additionally, the hybrid mode is very EV-heavy, draining the battery relatively quickly unless you manually put it in preservation mode.
For nerds who could be bothered, this mode is potentially a nifty feature allowing retention of some EV range at the end of a long freeway journey. But it takes a certain buyer to even be bothered with this.
Can you see why plug-less hybrids are the Australian new car buyer’s electrification configuration of choice?
While it may only be a mild hybrid, Audi has done its best to make the TFSI 110kW as fuel efficient as possible. To that end, in addition to the hybrid help this new 1.5-litre engine also features cylinder-on-demand.
The result is a claimed combined cycle fuel use figure of 5.7L/100km for the entry-level model.
Naturally the more powerful engines require more petrol. The 150kW models are rated at 7.3L/100km, while the 195kW has a claimed 8.1L/100km.
It’s worth noting that all three engines require a minimum 95 RON ‘premium’ fuel, which will only add to the cost at the pump in these times of high prices.
The 110KW/150kW models are fitted with a 55-litre fuel tank, while there is a bigger 60-litre tank for 195kW. That means theoretical driving ranges of approximately 960km for the 110kW models and just over 740km for the 150kW and 195kW offerings.
Here’s where things get a bit frustrating, and your experience will vary dramatically depending on how you use this car.
One thing we can get out of the way immediately is the Touareg is deeply technically impressive when you attack a few corners. Its immediate electric thrust is capable of propelling this large object forward with eye-widening speed, and the air suspension, wide grippy tyres, Torsen centre differential and tidy steering tune conspire to make it mind-bending to carve corners in.
It’s flat, stable, and far more accurate and agile than expected. The only hint as to the sheer physics of wrangling the Touareg around bends is the tyres screaming out in agony as the suspension and all-wheel drive system work their magic to keep it all under control.
Once the electric torque pushes you out from the corner, the deep satisfying thrum of the 3.0-litre petrol V6 quickly takes over as you lurch forward on the almost fluid-feeling suspension. It’s laugh-out-loud satisfying and certainly enough to capture passengers' attention.
In this sense, the R fulfils its mission of transforming the big Touareg into a handling and acceleration hero, but despite all the cleverness it doesn’t feel as sharp or lean as the Golf R, T-Roc R or Tiguan R.
There’s still a massive battery, as well as huge complexity and weight to deal with, no matter how technically fast it is. There’s always the unsettling feeling of this amount of weight moving around, and the occasional slight delay from the transmission as it figures out what’s going on between the electric motor and big engine.
Then there are the compromises. Normally, I’m a huge fan of how plush and luxurious the Touareg feels. It’s usually such a step above its station in the VW Group, occasionally even feeling preferable to its platform relations, but the R has some issues.
For a start, the enormous 22-inch wheels and low-profile tyres ruin the day-to-day ride quality, crashing over bumps and road imperfections, despite the fact there’s also air suspension supposedly providing a buffer between you and the tarmac.
Even in the more comfort-oriented drive settings you can hear and feel every bit the moment the wheels contact a pothole or bump. Clearly, it’s tuned more toward handling than maintaining the same luxury feel as the rest of the range.
The transmission is also occasionally hesitant, either from a standing start or when switching between electric thrust and the engine. This is much better when the battery is charged up from the reserve level, as there isn’t enough charge when driving around as a hybrid to push a big, heavy (and always) all-wheel drive very far.
But hybrid driving is also frustrating, for reasons mainly related to the software. With the battery charged, the 51km of claimed driving range feels a tad ambitious. I was able to charge it to about 50 per cent (the battery is huge, at 17.9kWh, and I could only pull about 3.5kW from a local AC charging unit) and scored about 20km of driving range.
It drains quickly, even in the hybrid driving mode, as it relies on the electric motor a lot for initial take-off.
This means unless you set the battery preserve mode manually in the hybrid settings screen, it will likely run the battery dry before you’re even able to get it somewhere where it can take full advantage of the extra electric thrust.
As an electric vehicle it’s also only alright. The short time I was able to spend in full EV mode proved the battery will drain faster than advertised, and the regen is so-so for assisting in braking.
Other more performance-focused PHEVs suffer the same issue. For example, I felt largely the same way about the much-maligned four-cylinder PHEV Mercedes-AMG C63.
While hybrids like this may be impressive when conditions are ideal, they’re ultimately frustrating to use in reality. It’s a shame, because I wanted to like it more but it doesn’t quite capture the same magic of its R-badged forebears and siblings.
While it may not be an RS model or a more dynamic sedan, part of the price premium you pay for an Audi is a more polished driving experience.
With that in mind, what Audi calls ‘Progressive steering’ (which is a variable ratio steering rack) is now standard across the range. This decision was driven by a desire to make the Q3 feel ‘more hatch-like’ to drive, being more responsive to driver inputs.
It certainly felt quite nice to drive at the launch, where we drove across a wide variety of conditions, including long stretches on winding mountain roads. The 110kW Launch Edition was enjoyable to drive in these conditions, even if the other two options offer a sportier driving experience with their extra power and all-wheel drive.
It should be noted again, we only drove Q3s fitted with adaptive dampers as those are included on the Launch Edition, so we can’t tell you how the true entry-level TFSI 110kW model rides and handles.
One minor concern was there were some rattles in one of the three cars we tested, centred around the dashboard and front doors. It’s notable because we have experienced similar potential build-quality issues with Volkswagen and Skoda products recently. This raises some questions about an area Volkswagen Group products have traditionally excelled in.
Having said that, it was only a problem in one of the three cars we drove, so it could be an isolated incident. But it’s something we will have to keep an eye and ear open to in future test drives.
All of the safety kit is standard and present on the Touareg R, including autobahn-speed auto emergency braking, lane keep assist with lane departure warning, front and rear cross-traffic alert, blind spot monitoring, road sign recognition, driver fatigue detection, a surround view camera and adaptive cruise control.
The best part is these systems not only work, but they’re well calibrated so they generally don’t interfere with the core driving experience.
Additionally, the Touareg has a suite of eight airbags and maintains a maximum five-star ANCAP safety rating achieved in 2018.
Audi claims this is the safest Q3 ever, with more safety equipment than before to ensure it meets modern customer demands.
There’s a 360-degree camera setup, reversing camera, adaptive cruise control and a host of other active safety features. But perhaps more importantly than just having these systems, they are locally tested and calibrated for local conditions.
This has quickly become an area where the premium brands are separating themselves from the mainstream. In the case of the Q3 we found that the lane keeping assist and adaptive cruise control worked better than your average mainstream model, so the local testing appears to have paid off.
Another safety feature worth mentioning is the new parking assistance system, which now includes ‘reversing assist’. This new technology can remember the last 50m of your trip and reverse backwards without your help. There’s also ‘trained assist’, which can learn up to five specific parking situations, that you can program and save. So, if you have a particular driveway or parking spot you can teach the car once and it can park itself in future.
The Q3 comes equipped with enough safety to score a maximum five-star rating from Euro NCAP and ANCAP. However, in a confusing twist, this is based on testing done to the 2025 protocols, even though the Q3 has only gone on sale in 2026. So future five-star ANCAP models will have been tested to a theoretically higher standard, which is something to consider when comparing models from other brands.
The standard five year, unlimited kilometre warranty features with one year of complimentary roadside assistance provided (renewed for another year with each service at an authorised dealer).
Servicing is required once every 12 months or 15,000km and the most affordable way to do it is with pre-packaged service plans bundled in with purchase. These come in at $3400 for five years (a saving of $668 over the a-la-carte program) or $2050 for the three year plan (a saving of $222).
Even in its most affordable form this makes servicing average $680 a year which is a far cry from most affordable brands, but it could be worse considering the complexity of the powertrain.
The Q3 is covered by Audi Australia’s standard five-year/unlimited kilometre warranty. This includes five years of roadside assistance too.
There is a standard five-year servicing plan for $3300, which is the same as the outgoing model, with servicing required every 12 months or 15,000km, whichever comes first.
Audi has an expansive, nationwide dealer network befitting its place as an established sales leader in the premium space.