Volkswagen definitely took their eye off the ball when they launched the Touareg. Fitting the 5.0-litre TDI diesel engine was a canny move, garnering plenty of column inches and giving the Touareg something that none of its rivals could match. The 2.5-litre TDI diesel was also a worthwhile addition for those who were looking to take a less ambitious bite at Touareg ownership. Unfortunately that left a huge, yawning gulf in between. A gulf that BMW, Volvo, Land Rover and Mercedes weren't exactly shy about capitalising upon. Two distinct niches in the luxury 4x4 sector have emerged in recent years. The big V8 petrol engine and the 3.0-litre turbo diesel market. With only a 2.5-litre oil burner to campaign with, the Touareg was, if such a thing is possible, looking a little lightweight. Volkswagen thankfully rectified this issue by launching the Touareg V6 TDI, a model which makes heaps of sense in its current facelifted form.

It's got more than enough engine for the task. With 223bhp under the bonnet, this Touareg squares up nicely against Mercedes, BMW, Land Rover and Volvo rivals. Suddenly the £32,640 asking price for the entry level model doesn't seem quite such an obstacle. The SE variant is pitched at £36,040. It's also an agreeably muscular engine, generating some 369lb/ft of torque. It's broadly similar to the unit found beneath the bonnet of the Phaeton V6 TDI limousine, except for the fact that the Touareg's installation has been tuned to offer more in the way of low down grunt. This means that the Volkswagen is adept at towing or hauling up steep inclines.

The overall fuel consumption figure of 27mpg is a reasonable showing given the Touareg's enormous all-up weight, and the acceleration to 60mph of 9.7 seconds is also firmly on the right side of acceptable. Top speed is quoted as 125mph, so motorway cruising shouldn't see the engine being flogged too hard. The emissions of 278g/km are hardly stellar but if you're buying this sort of vehicle, that's hardly likely to be a prime criterion. The engine is a good deal more advanced than either of its other diesel siblings, using an advanced piezo electric injector capable of making up to four fuel injections per cycle.

"The Touareg V6 TDI has more than enough engine"

A six-speed tiptronic automatic gearbox allows the driver to marshal things when in the mood and leave it to its own devices when wafting about. Fortunately, wafting is something the Touareg V6 TDI is rather good at. You'll only really hear a slight clatter from the engine at start up and this soon settles into a refined background thrum. Anybody who knows their cars will always be able to tell that this vehicle drinks from the black rather than green pump, but it's a car that revels in its fuel type rather than attempt to mimic the characteristics of something petrol powered. You'll rarely feel the need to push the engine much above 3,000rpm and the gearbox plugs nicely from one fat slug of torque straight into the next. It makes piloting the Touareg extremely effortless.

The only time you'll feel a little anxious is when trying to thread it through narrow city streets. The Touareg isn't what you'd call svelte. At 170cm high, it's not lacking in road presence and you'll have to edge carefully through urban width restrictors. Opt for air-suspension and you'll be able to jack the ride height up still further. The interior styling is pleasantly restrained, the materials quality is class-leading and the look and feel is much like the opulent Phaeton. Standard equipment includes electronic climate control, a multifunction computer, a ten-speaker CD system, walnut trim, heated and folding door mirrors and a huge airbag count.

The current car is a good deal better looking than the original, adopting the latest Volkswagen family face with the bold grille and also adding some rather sleek headlamp units that are fluted along the bottom edge. This means new front wings and bumper assemblies to make everything fit, so this hasn't been a low budget exercise. Revised door mirrors also feature as do new lower profile rear light clusters, with a beefier spoiler and exhaust pipes also evident if you know what you're looking for. The interior styling is pleasantly restrained, the materials quality is class leading and the look and feel is much like the opulent Phaeton.

On the road, the Touareg can't quite match the class-leading BMW X5. It comes close, though, and is a little tauter than a Range Rover and a touch keener than a Mercedes M-class. The Volkswagen has slightly more lateral roll in corners and there's that bit more side to side 'wobbly head syndrome' that BMW has worked so hard to exorcise. Still, the engine has enough pull to keep things composed when pushing on through corners. It's off road that the Touareg plays its trump card, especially when equipped with air suspension. Permanent four wheel drive and a low ratio gearbox are taken for granted, but factor in selectable front and rear differential locks, hill start and descent assist and very short front and rear overhangs and the Touareg becomes an awesomely capable tool. There's also ABSPlus, a system which can cut braking distances by as much as 20 per cent on muddy surfaces. With low range engaged, the Touareg can drag itself up a 45-degree slope with 35 degrees of sideways lean. The diesel engine's torque is always a bonus, and the relatively light weight of the six-cylinder TDI engine makes it particularly nimble on downhill stretches.

The Touareg V6 TDI is probably the most satisfying model in the range. While the 5.0-litre V10 undoubtedly gives the biggest adrenaline rush, the V6 offers a decent blend of pace, refinement, economy and relative affordability. Stacked up against the best in class, it makes a strong case for itself, offering more power and - in many cases - a more technologically advanced basic platform. Luxury 4x4s are never going to be sensible, but this is one of the more justifiable. We like it and think you will too.