Power boost for new 2025 Volkswagen Tiguan in Australia, due by early next year

Two of the three variants in the 2025 Volkswagen Tiguan family SUV range – due in Australia by this time next year – are set for a power boost as the high-performance R edition prepares to depart showrooms for the time being.

But there are still no plans for a plug-in hybrid variant – which would make it easier for the German car giant to meet upcoming Australian government CO2 emissions targets for new vehicles – as Volkswagen has elected to focus on electric cars.

Volkswagen Australia executives told Drive this week there will be three engine variants in the new Tiguan range, all petrols – a 110kW entry-level variant, and 150kW and 195kW versions of a familiar 2.0-litre turbo motor.

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The 195kW (195TSI) version will succeed both the popular 162TSI variant – as well as the 235kW Tiguan R high-performance model, which has already ended production and is expected to sell out by mid-year.

Drive has previously reported a new Tiguan R is in the plan, but it will not arrive at launch – and is not expected for another two years given prototypes are yet to be spotted testing in Europe.

The 162TSI and R five-seat variants currently account for more than half of all Volkswagen Tiguan sales.

More than 2000 examples of the Tiguan R alone were reported as delivered locally last year, and Australia is the number-one market for Volkswagen R performance cars globally – both outright sales, and share of total VW deliveries.

MORE: Volkswagen Tiguan R to reach end of the road – for now

Prices are yet to be announced, however the new model is expected to be more expensive given it is larger, with more power and technology.

The 195TSI R-Line is unlikely to be cheaper than today's model – priced from $60,590 plus on-road costs with five seats – as VW Australia named it in a media presentation as one of six SUVs it will sell in the $60,000 and $90,000 price range by early next year.

A lesser-equipped Elegance version may still slide under the $60,000 mark. The current 162TSI Elegance five-seater is priced from $57,090 plus on-road costs.

The new Tiguan 195TSI – with a seven-speed dual-clutch auto transmission and all-wheel drive – matches the updated Golf GTI hot hatch (due early 2025) for power. It is the first time a non-R Tiguan in Australia can claim this achievement in more than a decade.

"We may launch with the 110 and 195, and then the 150 may be a little bit behind," VW Australia spokesman Daniel DeGasperi told Drive.

Diesel will not return for the new model, nor will a plug-in hybrid (PHEV) be introduced – as Volkswagen Australia focuses on the upcoming electric ID.4 and ID.5 mid-size SUVs instead.

It is despite upcoming emissions targets for new cars planned by the Australian Government, which reward hybrid vehicles that produce little CO2 – and would help Volkswagen offset its less efficient van and ute range.

Volkswagen Australia is preparing to introduce its first plug-in hybrid – the large Touareg R performance SUV – but company spokesman Paul Pottinger told Drive expanding the PHEV line-up to other models is not currently under consideration.

"We've got so many SUVs in that part of the range, and where would a PHEV sit – because for Volkswagen, it would probably just take up showroom space," he said.

"They're at the point that there's no real necessity. If PHEVs or mild-hybrids came in subsequent generations of ICE [internal combustion-engined] cars exclusively, sure. But that's all going to be driven by what customers want anyway."

Mr DeGasperi added: "Have a look at the specification of the ID.4 Pro [electric SUV], have a look at where ... it will sit in the market, and against a key competitor in that [mid-size electric SUV] segment.

"I think you'll have a look at that specification and go, for a lot of people with a 500-kilometre-plus range, in an [electric vehicle] in a medium SUV body, it's better to focus on that vehicle than maybe a Tiguan PHEV."