Volkswagen Tiguan VS Mahindra XUV500
Volkswagen Tiguan
Likes
- Fun to drive
- Big design and tech upgrade
- Practical, spacious interior
Dislikes
- No new hybrid powertrains (yet)
- Base price will go up
- Touch-based climate
Mahindra XUV500
Likes
- Cheap way into seven seats
- Petrol/auto combination a winner
- Hugely spacious third row
Dislikes
- Underwhelming safety
- Steering that requires plenty of guesswork
- Cheap-feeling interior
Summary
Volkswagen Tiguan
Without a doubt, this is Volkswagen’s most important new vehicle.
Roughly eight million Tiguan mid-size SUVs have been sold since the nameplate came into existence in 2007, and the one we’re looking at for this review is the first new-from-the-ground-up version in eight years.
While it might look familiar from the outside, don’t be fooled. This third generation car is significantly different inside and underneath with upgrades the brand will need for it to stay relevant against an increasing array of hybrid traditional rivals and newcomers from China.
Does the 2025 Tiguan have what it takes to be your next family hauler? Stick with us as we find out.
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| Safety rating | — |
|---|---|
| Engine Type | 1.4L |
| Fuel Type | — |
| Fuel Efficiency | —L/100km |
| Seating | 5 seats |
Mahindra XUV500
Just in case attacking Australia's crowded SUV market with a virtually unheard of Indian brand wasn't a high enough hurdle to leap over, Mahindra had made its task even harder - think a Bollywood version of Mission Impossible - by launching its XUV500 SUV here with a diesel engine (which nobody wanted) and a manual gearbox (which few could even remember how to use).
Fortunately, it fixed one of those issues late in 2016, finally adding an automatic transmission to the line-up. And now, at long last, it's fixed the other.
This, then, is the petrol-powered XUV500 SUV. And, on paper at least, it's the most sense-making Mahindra to date.
For one, it's a ferociously cheap way into a new seven-seat SUV. For another, it's pretty well equipped, even from the base level. There's a long warranty, an equally long roadside assistance offering, and there's capped-price servicing, too.
So, should the mainstream SUV players be looking over their shoulders?
Spoiler alert: no.
| Safety rating | |
|---|---|
| Engine Type | 2.2L turbo |
| Fuel Type | Diesel |
| Fuel Efficiency | 6.7L/100km |
| Seating | 7 seats |
Verdict
Volkswagen Tiguan7.9/10
It's a hard to deliver a definitive verdict yet, because we’re still some way out from the Tiguan’s local arrival.
Expect a pricier mid-size SUV, but one which leans into its best traits as a semi-premium option, with a stellar cabin and a significant tech upgrade. What sets it apart in such a crowded segment is its ability to appeal to the keen driver, although it’s a shame Australia will miss out on some of the more ambitious and modern powertrain options available overseas, at least initially.
For now though, consider us impressed.
Tune back in in the second quarter of 2025 for all the details on the Tiguan’s local launch and pricing.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
Mahindra XUV5006.5/10
This petrol-powered and well-priced XUV500 W6 might mark Mahindra's most convincing effort at cracking Australia's congested SUV market, but we're still not completely convinced.
That said, it's certainly cheap, the ownership credentials stack up and it's a very comfortable way to transport seven people.
Will this Mahindra's low price and upgraded spec win your SUV vote? Tell us in the comments below.
Design
Volkswagen Tiguan
There’s a lot of familiarity with this new Tiguan. It doesn’t stray far from the sturdy, boxy, but pragmatic shape of the current car, at least at a distance.
Up closer, though, it’s clear there are some significant changes this time around. The previous car’s hard and angular character lines have been replaced by curvy finishes over the top of the wheel arches, paired with heavier contours down the doors and across the nose.
The face has dumped the previous chrome highlights, moving the grille lower and replacing the horizontal strips which used to sit behind the VW badge with a solid plastic bar (incorporating an LED light) running across the top.
The grille has been moved lower, and chrome has largely been replaced with gloss black and matt silver finishes. While the outgoing car was attractive in a relatively conservative way this new Tiguan makes more of a statement.
Round the back, expect a similar contemporary translucent plastic light-bar treatment to marry the rear two light fittings, with the VW badge taking pride of place alongside the TIGUAN typeface, as is the current trend.
Design elements carried over in the rear three-quarter include the shape of the rear side windows, the tough extruded bumper and the little roof-mounted spoiler. Trendy aerodynamically-styled wheel choices round out its modern appeal.
Perhaps the strangest thing about this design is how it somehow manages to make the Tiguan look smaller where most next-gen designs make new cars look much larger than their predecessors. There’s something subtle about it.
Inside is a radical departure from the now significantly dated outgoing vehicle. The somewhat drab greyscale dash, which was also strangely upright, has been replaced by something much more intriguing.
A huge piano black panel defines the character line of the dash, housing the air vents, dashboard, and new ambient lighting, sitting behind the enormous pride-of-place 15-inch media screen.
VW clearly heard the audience and for this car has put a major focus on tech. The new software to match looks much better, the screen is sharp and fast, and as usual the brand’s digital dash is easily one of the best on the market.
Swapping out old switchgear has also allowed for a more contemporary, pared-back centre console with the nicely-designed steering wheel carrying across. EV-like controls from the ID series take their place on the steering column.
This is not a car you can judge from several metres away. This is a car that's been well and truly launched into the 2020s.
Mahindra XUV5005/10
There's no getting away from the fact the XUV500 is not the sleekest, prettiest SUV in the pack. But it's not ugly, either. More that it looks like it's doing its best with a design philosophy hatched a generation or two ago.
Its best angle by far is when viewed straight on, where the piano-black grille, dual bonnet bulges and complicated (read: a little weird) headlight clusters all add some road presence to Mahindra's only SUV.
A side-on viewing, however, is less satisfying, where a combination of strangely placed and super-sharp body creases (including one over the rear wheelarch, which adds a Harbour Bridge-style crescent to the otherwise-straight window line) and serious rear overhang give the XUV500 an inescapable awkwardness.
Inside, expect a vast collection of rock-hard (though nicely patterned) plastics, with the ambiance rescued somewhat by the clean-looking and vertical central control unit, which is home to the media screen and air-con controls.
Ready for some hashtag real talk? There are better-looking and better-feeling seven-seat SUVs out there. But there aren't many that start at $25,990 drive-away. And I think that's Mahindra's point.
Practicality
Volkswagen Tiguan
The previous Tiguan was always notable for how spacious its cabin was, and for the most part that pragmatic approach continues.
The re-designed seats proved comfortable over the significant amount of time we spend behind the wheel traversing central Germany, and while it feels a little smaller inside due to the much busier design of the dash, there’s plenty of room for even tall adults given the cabin's height and width.
As usual with Tiguan, it’s easy to find a comfortable and sporty seating position, and the touchpoints are all excellent with much less hard plastic in the doors and centre console.
Each door offers an enormous pocket and bottle holder, and the new car gets a two-tiered shelf design in the centre console, housing a wireless charger below.
A single multi-function dial can control either audio volume or drive mode with a quick press, and without additional switchgear. There is a versatile set of bottle holders and a centre console armrest box behind.
The huge screen is oriented towards the driver. In the pictures it looks like too much, but it’s somehow low enough and the software largely has clever shortcuts to minimise distraction.
The most unfortunate feature of the screen, though, is the requirement to control the climate via touch sliders or a screen-based menu.
If only the brand had committed to giving us two more dials to control the climate zones or fan speed as appear in its Skoda relations. Still, it’s a significant step-up from the outgoing car.
The back seat offers heaps of room for myself, at 182cm tall, behind my own driving position. The generous seat claddings continue (as usual for a VW), with adjustable air vents, a rear climate zone and USB-C ports offered on the back of the console for rear passengers.
Lovely soft trims continue in the doors, and there are a set of three pockets on the back of each front seat, good for phones, tablets, or whatever you can think of.
Boot space measures in at an enormous 652 litres, proving VW found a significant amount of space somewhere in this new design.
Need more? The second row is on rails, so if you’re not using it, or you’re using it for kids who don’t need the legroom, you can boost the load space even further.
Mahindra XUV5007/10
Pretty damn practical, actually, regardless of whether you want to carry people or cargo. Carrying both at the same time, however, is tricky.
But let's start with people. There is a huge amount of room in the third row of the XUV500, a space with enough head and legroom to put plenty of its competition to shame.
Thanks to second-row seat backs that fold flat, before the the entire seat lifts up and pushes forward, climbing into seats six and seven isn't too big a drama, either.
We rarely say this about seven-seat cars, but at 175cm, I'd feel plenty comfortable back there on a longer drive. There are two air vents in the third row, too, along with bottle storage and side-seat storage for thin items.
The space in the middle row is ample as well, and you'll find three ISOFIX attachment points, one for each of the three seats. There's also a door pocket in each rear door and storage nets on the rear of the two front seats. A pull-down divider that separates the back seat is home to two cupholders, matching the two for front seat riders.
The only downside to all this people-lugging happiness is that, with the third row of seats in place, there is absolutely no room for luggage. Mahindra doesn't quote a litre storage figure when seven are seated (mostly because it would probably be embarrassing to write "one litre"), but trust us, you'll be lucky to squeeze a soft backpack in the boot with all seats in place.
Things improve considerably when you drop the third row of seats, though, which unlocks 702 litres of storage, and that number climbs to 1512 litres with the second and third row folded down.
Price and features
Volkswagen Tiguan
Australian deliveries of the new-generation Tiguan were still a while away at the time of writing, so we don’t have precise pricing and specifications to share just yet. However, the brand’s Australian division tells us to expect a similar grade walk to the outgoing car.
This will likely mean three key variants tied to three drivetrain options. We know for now the incoming base version will retain the same 110TSI engine, but will take a significant hike in standard equipment, while the next two variants up will use upgraded engines, a mid-spec 150TSI and a top-spec 195TSI.
The bad news is Volkswagen says it will be fair to expect a price-hike on base versions, what we understand is “closer to the $50K mark”, while the outgoing car starts from $43,990, before on-road costs.
The good news is the standard equipment is “more in-line with what the VW customer expects” according to the brand, with the main problem not being price, but apparently buyers wanting things like standard leather seats and upgraded cabin tech with the more basic engine.
Next up, the 150TSI 2.0-litre all-wheel drive will replace the outgoing 132TSI, and at the top of the range, the most important R-Line grade (which VW sells the highest proportion of) will also get a significant boost, not only with the 195TSI engine (up from the current 162TSI), but also new equipment.
Across its grades, the new Tiguan will have access to new-generation matrix LED headlights, large alloy wheel choices, and a 15-inch multimedia screen with wireless Apple CarPlay and Android Auto.
There is also a completely overhauled software suite, with a new version of the VW's renowned digital dash cluster, and you can expect impressive spec highlights from the current vehicle, like tri-zone climate control, to continue over.
And this third-generation car also scores completely re-designed seats, revised ambient lighting, a new head-up display and extended soft-touch materials throughout the cabin to solidify its semi-premium market positioning.
Stay tuned closer to the new Tiguan’s arrival in Australia in the second quarter of 2025 for full local pricing and specs. That said, the cars we drove for this review were largely representative of what we might see land on our shores.
Mahindra XUV5009/10
Make no mistake, this Mahindra kills the competition on price. The entry-level W6 version will cost you a lean $25,990, while the fruited-up W8 version will set you back $29,990. You can even have an AWD W8 for $32,990. The best part? All of those are drive-away prices.
Go for the W6, and you can expect 17-inch alloy wheels, cloth seats, air-con with vents (powered by a second compressor) in the second and third row, cornering headlights with DRLs, front and rear fog lights, cruise control, rear parking sensors and a 6.0-inch multimedia screen linked with a six-speaker stereo.
Spring for the W8, and you'll add leather seats, a reversing camera, tyre-pressure monitoring and a bigger, 7.0-inch screen with standard sat-nav.
Under the bonnet
Volkswagen Tiguan
In some ways, I don’t envy our European friends, who can choose from a whopping eight different drivetrain permutations in the new Tiguan range.
However, again there’s good and bad news for the Australian market.
The bad news is we won’t see the new and more efficient 1.5-litre mild-hybrid engine option which is the base version (and one of the cars we drove) in Germany.
We also won’t see the surprisingly finely-tuned diesel versions, and we also won’t see the great new plug-in hybrid version, at least not at launch.
With this out of the way, what we can expect is a familiar line-up. The 1.4-litre turbocharged four-cylinder engine (110TSI) will carry over from the outgoing vehicle, producing 110kW/250Nm, a new mid-spec engine, producing 150kW/320Nm, and a new top-spec engine (dropped out of the Golf GTI, no less) producing 195kW/400Nm.
As usual, expect all three options to be mated to a seven-speed dual-clutch automatic transmission.
It's a shame the local division isn’t ambitious enough to launch with the next-gen plug-in hybrid version, which pairs the new 1.5-litre four-cylinder engine with a big 25kWh battery for an estimated 100km electric driving range.
It also brings with it robust charging specs, like an 11kW AC inverter (for a slow charge time of two hours on a compatible charger) and even the ability to charge on DC at 50kW (for a fast-charge time in half an hour).
Our experience in a German-market example proves one of the other benefits of this powertrain, which is a fuel-efficient hybrid mode even when the battery is drained.
Perhaps it’s a story of petitioning your dealer for one if you want it. No doubt the brand will be listening to on-the-ground feedback post-launch.
Mahindra XUV5006/10
There's a diesel engine currently available, but the clock is ticking - Mahindra expects it to be phased out within six months. But the big news here is the new petrol engine, a turbocharged 2.2-litre unit good for 103kW/320Nm. It's paired exclusively with an Aisin-developed six-speed automatic transmission, and will send it's power to the front or all four wheels.
Mahindra doesn't quote official performance figures, but those engine outputs hardly scream excitement, do they?
Efficiency
Volkswagen Tiguan
Given the engines will be familiar don't expect any radical changes when it comes to fuel consumption.
We don’t have official WLTP-certified figures yet because the 1.4-litre 110TSI and 2.0-litre 150TSI engines aren’t even in production in the new body yet, but it's fair to assume they won't stray far from the 7.7L/100km of the current 110TSI, up to 8.5L/100km for the current 162TSI R-Line.
For those wondering, the difference between the carryover 110 and the new one in Europe, it’s about 0.9L/100km according to overseas figures (with the new 1.5-litre MHEV engine consuming 6.8L/100km).
Even better news is the power boosted 195kW engine has the same fuel consumption as the outgoing 162TSI.
Meanwhile, the 1.5-litre eHybrid (PHEV) version we’ll miss out on has claimed fuel consumption of just 0.5L/100km.
As usual, these turbocharged Volkswagen engines will require a minimum of 95RON premium unleaded fuel.
Mahindra XUV5006/10
Local numbers are yet to be confirmed, but after an admittedly vigorous local test, the on-board computers was reading 13+ litres per 100km. All XUV500's are fitted with a 70-litre fuel tank.
Driving
Volkswagen Tiguan
The Tiguan has always been a stand-out drive in the segment (which VW says underpins the high-spec R-Line version's popularity in Australia) and the improvements for this new-generation car lean even further into its on-road prowess.
Significant revisions as part of the new Tiguan’s upgraded MQB Evo platform include improved chassis rigidity and all-new suspension, which has an immediate and obvious effect as soon as you hop behind the wheel.
We were able to sample a 1.5-litre MHEV (an engine we won’t get, but in a trim level indicative of 'our' base car) as well as a 2.0-litre 150TDI diesel all-wheel drive (as a stand-in for the not-yet-in production 195TSI model) and both stand well above the segment in terms of handling and straight-up fun (at least for a mid-size SUV).
Don’t expect the kind of doughy ride and compliant steering of rivals, instead prepare yourself for what feels like a scaled-up Golf.
The third-generation Tiguan is defined by accurate, engaging steering, punchy and reactive engines, a sandpapered-smooth response from the dual-clutch transmissions, even at low speed, and (particularly for the front-wheel drive) an SUV which feels light on its feet.
This all makes for a mid-size SUV which, if anything, encourages you to push harder on a bit of curvy tarmac. Sure it doesn’t have the nearly EV-like smoothness of its hybrid rivals, but this is supplanted by serious fun to be had, which is extremely rare for this segment.
In our experience, the new ride is springy and reactive, although it was hard to gauge how the new Tiguan might feel in Australia due the high quality of German roads which don’t have the imperfections which riddle the surface of Australian tarmac.
It does feel a bit more locked down, but the previous Tiguan had an outstanding ride considering its more sporty intent, so I wouldn’t be surprised to see this continue.
Both turbo engine options roar to life when pushed with a pleasing tone, and as usual the dual-clutch autos are lightning fast at shifting and provide a lot more feedback and engagement compared to the usual dull CVT popular on rival mid-sizers.
The one thing which takes away from the experience is the need to interact with the climate controls via touch interface, a bit annoying and potentially distracting on the go.
On the flip side, the active safety equipment (particularly lane keep assist) is thankfully not anywhere near as overbearing as it is in some of this car’s rivals, solidifying the Tiguan’s position as a robust option for a keen driver.
Mahindra XUV5006/10
About as old school as rocking a pair of button-up tracksuit pants with a Run-DMC cassette stuffed into your Walkman.
On a straight and unchallenging road, there's stuff to like about the petrol-powered XUV500. The engine, while gruff under heavy acceleration, doesn't feel too wheezy when you're not asking a great deal of it, and nor is the cabin overly loud at suburban speeds. It's a comfortable space for driver and passengers, too, and the gearbox performed seamlessly on our short test drive.
But that's about where the good news ends. There's an unshakeable agricultural feel to the way this Mahindra SUV goes about its business, and nowhere is that more obvious than through the steering wheel, which has only a vague and difficult relationship with the the front tyres, making it seriously tricky to approach twisting roads with anything approaching confidence.
The steering is slow and cumbersome - light when you first begin turning the wheel, with a ton of weight appearing by surprise midway through the cornering process - and it has a tendency to fight back should the front wheels find a bump or corrugation in the road, too.
The body lolls about when challenged, too, and the tyres are quick to give up their grip on tighter corners. All of which would give it a certain retro charm if it wasn't so very new, and I must admit I was cackling maniacally on some of the more twisting roads.
But it's simply not a car I could live with.
Safety
Volkswagen Tiguan
The new-generation Tiguan was recently awarded a maximum five-star Euro NCAP safety rating and has significantly increased its array of equipment.
Even the base Tiguan in Europe gets auto emergency braking with vulnerable user protection, lane keep assist, and blind spot monitoring with rear cross traffic alert.
There is also now front cross-traffic alert, a more thorough driver attention monitoring system, traffic sign recognition, and a safe exit warning system, alongside the usual array of stability, traction, and brake aids.
Airbag coverage has also been expanded to include a centre airbag up front, and full side airbags to join the usual curtain set.
Tune back in when the Tiguan launches in Australia to see if its maximum European rating carries across to ANCAP.
Mahindra XUV5006/10
Expect dual front, front-side and curtain airbags (though the latter don't extend to the third row of seats), along with rear parking sensors and ESP. Stepping up to the W8 trim adds a reversing camera with dynamic guidelines. The XUV500 was awarded a four-star (out of five) ANCAP assessment when tested in 2012.
Ownership
Volkswagen Tiguan
As of right now, Volkswagen offers a five year, unlimited kilometre warranty with a year of roadside assist, and it would be a shock not to see the usual three- or five-year pre-paid service packages when it launches in Australia.
On the current car, these amount to about $580 annually (for a 2.0-litre 162TSI R-Line) which is on the premium end for the mainstream SUV segment.
Expect the same service interval as the current car, too, set at 12 months or 15,000km. Check back at local launch time for full details.
Mahindra XUV5007/10
All XUV500s are covered by a five year/100,000km warranty (though the final two years apply only to the drivetrain), along with five years of complimentary roadside assistance.
The XUV500 is also covered by Mahindra's capped-price servicing program for the first three years of ownership, and will require servicing every six months or 10,000km.