VW Touareg review: It's a match for premium rivals but at a lower price - so why is it not more popular?

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If you're in the market for a large, premium SUV, you're spoilt for choice in 2024.

Drivers can take their pick from the showrooms of Audi, Bentley, BMW, Jaguar Land Rover, Mercedes, Porsche, Volvo and others when hunting for a family-friendly model loaded with all the bells and whistles - as well as sizable price tags to match their hulking dimensions.

But there's one car in the segment that has historically offered great value but been consistently overlooked - Volkswagen's Touareg.

We've driven the latest version to see where - if at all - it falls down against flashier rivals...

The often-overlooked luxury SUV: We've been testing the facelifted VW Touareg to find out why buyers in the premium segment aren't snapping it up as much as rivals

How much cheaper is it than rivals?

Let's kick things off with the humble Touareg.

Prices for the entry version start at £68,065, which is far from cheap but, for this segment of vehicle, is considered more than reasonable.

Despite this, VW sells around just 1,100 Touaregs per year (based on 2022 figures).

Just under £70,000 buys you the entry Black Edition with a 3.0-litre, 228bhp diesel V6 engine linked to an eight-speed automatic gearbox. The more potent 282bhp version of the same oil burner (which we drove) rings in from £70,745, while a 3.0-litre V6 petrol is also available from £72,530.

How does the starting price compare to the main competition?

Audi's Q7 - which is mechanically similar to Touareg - begins from £68,370, so there's barely anything in it for those who prefer the four-ringed badge over the iconic VW logo.

The price gap begins to extend when you look at other rivals, though. 

A standard BMW X5 is £70,685, while a base-spec Porsche Cayenne costs almost £10,000 more (starting from £76,000). As does the Mercedes-Benz GLE (from £75,695).

The gulf grows even greater if you're considering buying a Range Rover, which starts from £104,000 (or £75,255 if you go for the smaller RR Sport), and you'd need to more than double your budget if you want a Bentley Bentayga, which costs at least £155,000. 

The cheaper alternatives are the Volvo XC90 (currently offered at a discounted price from £52,669) and the Jaguar F-Pace (£46,805), which both look very good value against the Touareg and rivals mentioned. 

There's a new front end design comprising a reshaped grille, bumper and the addition of the German marque's IQ.Light HD LED matrix headlights. It certainly makes the Touareg appear less civilised than before

The headline update to the rear is a full-width light bar that extends through an illuminated VW badge, which looks very smart, feeling particularly edgy at night

What's new? 

The third-generation Touareg has been on sale since 2018 but VW gave it a comprehensive facelift last year in the hope it could muscle in on this heavyweight division.

There's a new front-end design comprising a reshaped grille, bumper and the addition of the German marque's IQ.Light HD LED matrix headlights. It certainly makes the Touareg look more nightclub bouncer than stately-home butler.

The headline update to the rear is a full-width light bar that extends through an illuminated VW badge, which looks very smart, feeling particularly edgy at night.

New wheel designs are also available up to 22 inches in size.

VW has kitted out the facelifted Touareg with the latest version of its Innovision Cockpit

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Inside, Touareg now boasts VW's up-to-date 'Innovision Cockpit', which provides HD navigation maps. There's also a slicker voice control upgrade and smartphone users can link Apple CarPlay or Android Auto wirelessly.

Other features that are standard across all trim levels include a power tailgate, rear parking camera, adaptive cruise control, heated front seats and keyless start.

Caravanners will also benefit from the new Trailer Assist functionality, which provides an aerial 360-degree view when trying to manoeuvre into tight spaces, as well as a roof load sensor that tells you if you've packed too much bulk into a roofbox.

To make the purchasing journey simpler, just two trims are available: the aforementioned Black Edition or the 'R', which is limited to a single powerplant: another 3.0-litre unit but this time a twin-turbocharged petrol packing a mighty 456bhp. 

Caravaners and towers of horseboxes can benefit from the new Trailer Assist functionality, which provides an aerial 360-degree view when trying to manoeuvre into tight spaces

Despite diesel being an increasingly unpopular engine choice, it's the best option for a hulking premium SUV like the Touareg. And the 3.0-litre V6 in the VW is stellar

How does it drive?

In 2024, new models with a diesel engine are becoming few and far between as the 'dirty' fuel type continues to decline in popularity. But for elephantine SUVs like the 2.1-tonne Touareg, it's still the most sensible choice.

VW knows this and for that reason has developed and fine-tuned the V6 oil burner into one of the most accomplished diesel powerplants we've experienced.

Our test car boasted the more powerful 282bhp output. It delivers almost endless servings of torque, no matter what speed or gear you're travelling in.

This makes it ideal for long motorway journeys and is especially handy when you need an instant kick of grunt to heave this sizeable brute around slowing moving road users in a matter or seconds.

A 0-to-62mph dash in this behemoth takes just 6.4 seconds - that's 0.1 seconds quicker than a Mazda MX-5 roadster - and we think it could be even sprightlier if the DSG gearbox was less clumsy at times. 

Keep the throttle pinned and our Touareg can motor on to a top speed of 146mph (we didn't test this, of course).

Our test car was the more powerful 282bhp output. It delivers almost endless servings of torque, no matter what speed or gear you're travelling in, making it ideal for long motorway journeys

Despite lacking in the steering feel department, the Touareg is surprisingly nimble when you need to string together a few bends. This is largely due to its four-wheel steering system

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But this isn't a hyper-SUV by any stretch of the imagination. 

While it might be underpinned by the same platform as the infinitely sportier Audi Q8 and Lamborghini Urus, VW's product is undoubtedly tuned for outright comfort rather than white-knuckle performance.

This explains the light - and a relatively vague - steering. However, despite its sensation-stripped steering feel and the car's bulk, it's surprisingly nimble when you need to string together a few bends. This is largely due to its four-wheel steering system.

The air suspension - previously an option but standard on our test car - bolsters the agile handling and keeps body roll to a minimum while still supplying pillowy ride comfort that's up there with the best in class.

Active safety kit comes in abundance too and we found the Adaptive Cruise Control and Predictive Cruise features reduced stress levels on extended journeys in stop-start traffic.

One of the biggest plus points about the hulking VW is the level of comfort. There's acres of space in side and all the materials feel plush

Interior quality: where the Touareg won us over

The automotive arms race to make interiors as clutter-free and technology laden reaches new peaks every year, but VW has found the perfect compromise of intuitive layout, quality material and effective features.

It looks and feels great inside, with wonderfully supportive seats and heaps of head, elbow and legroom no matter where you're sitting. 

This is in part due to Volkswagen's decision to refrain from turning the Touareg into a seven-seater - a move that would undoubtedly expand its appeal to larger families. 

While this might limit its salability, the payoff is a huge cabin for five to enjoy.

Cast your eye - and hands - around the interior and its a wealth of leather, weighty metal and high-quality plastics. VW hasn't cut corners to save cost, and this results in a very classy cabin that's on par - if not better - than most rivals in its class

The digital dual-screen setup combining a 15-inch infotainment display and 12.5-inch HD instrument cluster look great, have snappy processors with sharp responses and a good mix of operating functions

Cast your eye - and hands - around the interior and its a wealth of leather, weighty metal and high-quality plastics. VW hasn't cut corners to save cost, and this results in a very classy cabin that's on par - if not better - than most rivals in its class.

The digital dual-screen setup combining a 15-inch infotainment display and 12.5-inch HD instrument cluster looks great, is powered by a snappy processors with sharp responses, and provides a good mix of operating functions, from prodding the screen to using control buttons on the steering wheel. 

While VW has come under some criticism of late for its clunky touchscreen features (notably those in the pre-facelift Mk8 Golf and ID.3), the Touareg's doesn't fall foul of these issues; the infotainment display provides a configurable menu, meaning you can tailor it like a smartphone home screen to prioritise the applications and functions you tinker with most and drop little-used features to the back of the queue.

The Touareg's boot is frankly enormous. With 810 litres of luggage space with the seats up, there are few cars on the road that can better it for load lugging

You won't be wanting for more luggage space

Touareg boasts one of the largest boots in the premium SUV segment.

In total, VW says you can cram 810 litres into the back with the rear seats in place. That's better than the Audi Q7 by 40 litres.

Fold the rear backrests down and there's a commercial vehicle-like 1,800 litres of loading capacity - on par with the Volvo XC90.

There's also a particularly handy feature for when you need to load heavy items over the boot sill.

The air suspension can be lowered by 45mm at the press of a button in the boot - a very useful tool for those times when you need to take a washing machine to the recycling centre or get carried away with your furniture spending during visits to Ikea.

While the Touareg might be one of the more affordable options in the segment, it is still a premium SUV - and this means premium running costs that come with it

A cheaper luxury SUV still with premium running costs 

Will it fit in my garage? VW Touareg

On sale: Now

Price: from £68,065

Price of model tested: £72,665 

Model tested: 282bhp V6 diesel Black Edition with options: power towbar and Trailer Assist (£1,195); Chilli Red metallic pain (£1,010)

Engines: V6 diesel/V6 petrol

Transmission: 8-speed auto gearbox

Drive: Permanent 4Motion 4X4

Acceleration (0-62mph): 6.4 secs 

Top speed: 147 mph

Fuel economy (official): 34.4mpg 

CO2 emissions: 215g/km

Kerb weight: 2,118kg

Towable weight: 3,500kg

Length/width excl. mirrors/height: 4,902mm/1,984mm/1,695mm

Boot volume (rear seats up/down): 810 litres/1,800 litres

Fuel tank: 75 litres

Insurance group: 45E

Warranty: 3 years/60,000 miles

The Touareg might be among the more affordable 'luxury' SUVs, but it still comes with premium running costs.

Let's start with the good news - fuel economy.

VW says both diesel engine options will return 34.4mpg. However, during our week-long test, we managed to bring the needle closer to the 40mpg mark having driven on a variety of road types.

That's pretty impressive for a motor of this size and power, which also sends drive to all four wheels with permanent all-wheel drive.

Unfortunately, the costs start to mount up elsewhere.

With a 215g/km CO2 emissions output, you're looking at a first-year Vehicle Excise Duty outlay of £2,340.

Thereafter, the standard rate drops to £190. However, because of the Touareg's bank-busting price tag, for the first five years of the standard rate owners will need to pay the additional £410-a-year 'expensive car' premium duty levied on all models priced above £40,000. 

It means this family wagon will cost drivers £5,340 in road taxation alone in the first six years. 

Insurance is pricey too, with ours test car sitting in Group 45E. And it would be higher if VW had not fitted a host of new safety kit to make it less risky in the eyes of policy providers.

As for depreciation - the running cost many people tend to overlook - the Touareg performs adequately, losing around half its value after the first three years and 36,000 miles.

This isn't as good as prestige rivals; the Porsche Cayenne clings onto around 66 per cent of its value after 36 months while the Audi Q7 hangs onto around 60 per cent. 

In terms of reliability, owners who completed What Car?'s latest reliability survey ranked the German brand 22nd out of the 32 mainstream car makers, which doesn't instil an abundance of confidence

How safe is the Touareg - and will it be reliable?

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Apart from HGVs and coaches, you're unlikely to come across many vehicles on the road that will gulf the size of the Touareg. 

That's good news for your safety - though not necessarily for those in smaller cars on the receiving end of a shunt with this whopping motor.

When Euro NCAP tested it back in 2018, it scored five out of five stars. And because VW has added to its arsenal of safety features, you can feel extremely confident it will keep you and your loved ones safe if you're unfortunate enough to be involved in a crash.

In terms of reliability, owners who completed What Car?'s latest survey ranked the German brand 22nd out of the 32 mainstream car makers, which doesn't instil an abundance of confidence. 

And according to warranty provider Motoreasy, the Touareg doesn't have a flawless track record based on the current model and the second-generation car that came before it.

Electrical and fuel system faults tend to be most common and - as with all premium cars - the repair costs can be steep, up to £1,000.

The Touareg is a real conundrum. It's feels accomplished against rivals in its segment despite, being competitively priced. In fact, we're struggling to pick holes in it at all

Cars & Motoring Verdict: An accomplished luxury SUV - so why isn't it more popular?

The reason for Touareg's lack of popularity is a conundrum.

It feels accomplished against rivals in its segment despite being more competitively priced. In fact, we're struggling to pick holes in it.

It's roomier than others in this class, feels just as plush as models twice the price and drives well with lots of comfort and plenty of grunt from its diesel powertrain.

Running costs are high, but nowhere near as expensive as others in the same category. It has plenty of tech and - importantly - both the hardware and software appear to run smoothly. And it looks better than it ever has.

So, what's the problem? What is the reason for why so many buyers are putting down-payments elsewhere?

We've deduced that it simply comes down to image.

Maybe it doesn't command the same appearance of affluence that an Audi Q7 or Mercedes GLE does. And it certainly fails to draw the head-turning stature of a Porsche Cayenne or Bentley Bentayga.

It therefore appears to be snobbery that limits the appeal of the VW in this upper-class car segment, which might be the biggest purchasing decision when buying a £70,000-plus motor.