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VW’s new Tiguan takes fight to SUV heartland

Sharpened value offering on box-fresh Volkswagen Tiguan to go after the mainstream

27 May 2025

WITH the long-lived second-generation Tiguan now finally clocking off after a nine-year production run, the arrival of the third iteration signals a strategic shift for Volkswagen in Australia – vehicle dynamics are still a priority, but the brand is now going against the grain and actively pushing downward into the meatiest part of the mainstream. 
 
The new Tiguan range spans a price window from $44,990 to $70,490 (before on-road costs), with three powertrains (110TSI, 150TSI and 195TSI) shared across three trim levels (Life, Elegance and R-Line). 
 
The 150TSI and 195TSI resolutely play in a space where Volkswagen is already popular: in the latter years of the previous-generation Tiguan, it was the powerful 162TSI that was the top seller, followed by the even more potent Tiguan R. 
 
With the latest Tiguan, power is still expected to prevail in the sales mix, but the substantially sharper offering of the new 110TSI is expected to find more favour among mainstream buyers who’ve typically seen the Tiguan as being ‘not for them’. 
 
“It’s also important to consider that we’ve got rivals in the medium SUV space with 2.0-litre naturally aspirated engines, 2.5-litre naturally aspirated engines,” said VW Australia acting general manager of communications Daniel DeGasperi. 
 
“I think what’s really good is we’ve got a car at $45,000 that’s really, really well equipped. But, we’ve also got a (110TSI Elegance) out there that’s optioned with the sound and vision pack, when you do that, you’re getting the smallest engine transformed by that (new) DSG (transmission) with every bit of equipment – pneumatic massage, leather, Harman Kardon audio, head-up display, and so on – and that talks to a new type of customer as well.” 
 
“We know X-Trail or Outlander or Forester private buyers are quite happy with 2.5-litre naturally aspirated engines, and we think we’ve got the better engine with the 1.4-litre turbo that we can now offer with that very Touareg-level of luxury. 
 
“The 110TSI Elegance (optioned with sound and vision) has an RRP of about $55,000 even when you’ve loaded it up, which is bang-on what the competitors offer with those atmo engines.” 
 
And in the middle of the range, while the 150TSI has a 12kW haircut versus the previous volume-seller, the 162TSI, it is still expected to be a big mover both in R-Line ($55,990) and Elegance ($55,990) grades.  
 
“It was staggering that even at nearly ten years old, the (previous-generation Tiguan) 162TSI R-Line was still the number one seller at $60,590," said Mr DeGasperi. 
 
“The other thing is that the 150TSI R-Line is now about $4500 cheaper than the old 162TSI R-Line, losing a couple of minor features but also gaining a whole bunch of features.” 
 
Feature density of the new Tiguan range is hard to dispute. Even the entry-spec Life grade comes with a powered tailgate, dual wireless phone chargers, a 360-degree parking camera and nine airbags as standard – equipment generally unseen on a base grade, mainstream medium SUV.  
 
Also unseen is a single hybrid in the new Tiguan line-up, nor plug-in hybrid (PHEV) or battery electric versions. 
 
While a Tiguan PHEV exists for overseas markets, Volkswagen’s local office maintains that the recent launch of its all-electric ID.4 and ID.5 already provide its customers with eco-minded options in a medium SUV form factor and is generally unfazed by the rise in market share of hybrid and PHEV models. 
 
With the dominant player in the SUV segment, Toyota, having just shown off its plans for its next-gen RAV4 – which will include a plug-in hybrid for Australia for the first time – time will tell whether Volkswagen’s all-combustion strategy for the Tiguan will keep pace with a broader segment migration toward electrification.
 
 

2025 Volkswagen Tiguan pricing*:

110TSI Life (a)

$44,990

(+$1000)

110TSI Elegance (a)

$50,690

New variant

150TSI R-Line (a)

$55,990

New variant

150TSI Elegance (a)

$60,690

New variant

195TSI R-Line (a)

$70,490

New variant

*Pricing excludes on-road costs.


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