What's the difference?
Audi’s latest Q5 Sportback brings mild-hybrid power, updated underpinnings, more technology and a genuinely impressive interior glow-up.
It’s clearly aimed at buyers drawn to a more athletic take on the mid-size SUV, where style plays a bigger role than outright practicality. We're testing the base petrol spec to see how it sits alongside the BMW X4 xDrive20i, Genesis GV70 2.5T and Mercedes-Benz GLC300 Coupe.
Commercial vans are not an exciting segment of the car industry - but they are big business.
Not only do businesses, especially fleets, need a quality van, if you can crack the market there are meaningful sales for some of the biggest name brands in the country.
Unsurprisingly, Toyota dominates the mid-size van market with its HiAce, which notched up more than 12,000 sales in 2024 to make it one of the market leader's most popular models. For Ford the Transit Custom is even more important as the brand’s third best-selling vehicle behind the Ranger and Everest.
Which is why the decline of Volkswagen’s Transporter has been a big deal for the brand, and it’s why the arrival of the all-new, seventh-generation model is such a big deal. The German maker only sold 875 Transporters last year, as the transition between the out-going model and this new one hit hard.
But that’s the past, Volkswagen is focused on the future, with high hopes this new Transporter can rise back up the sales charts. It also completes VW’s commercial van line-up, sitting alongside the smaller Caddy and ID.Buzz Cargo as well as the larger Crafter.
This new Transporter is slightly less Volkswagen than the previous six generations, though, as it is now platform sharing with Ford as part of the two automotive giants’ commercial partnership (which sees the Amarok also based on the Ranger).
By working together it has allowed the two companies to develop not only a new diesel-powered van but also an all-electric offering and a plug-in hybrid. The latter won’t be available until sometime in 2026, but we’ve just driven the new diesel and electric Transporter.
The updated Audi Q5 Sportback TFSI is a strong example of a luxury base-grade SUV, ticking most of the boxes in styling, comfort and features. It may not always outperform its rivals on paper, but it delivers where it counts, offering a refined, practical and engaging package that will satisfy.
So has Volkswagen done enough with this new Transporter to win back buyers in what has become a highly-competitive van market?
Based on our initial test drive of the Transporter, it’s safe to say Volkswagen has a good chance of regaining some lost ground. But it won’t be easy because there isn’t any particular area where the Transporter really sets itself apart from the competition.
It’s a pleasant van to drive, with a roomy, modern cabin and a competitive cargo area, at least with the diesel engine. The electric Transporter provides an alternative choice for a small audience, but the huge price premium and limited range will mean it won’t suit the vast majority of buyers.
The real opportunity for VW will come when the PHEV arrives in 2026. That has the potential to help create some difference between itself and the likes of Toyota and Hyundai.
It’s noticeable that the brands dominating the commercial van market are the big name ones, rather than the cheaper Chinese competition, which suggests buyers are looking for a trusted name rather than the lowest price.
So from that perspective, Volkswagen has a decent chance of regaining lost ground given its heritage in the van segment.
Note: CarsGuide attended this event as a guest of the manufacturer with meals provided.
The Q5 Sportback is the more attractive sibling when compared to the standard SUV, with a shape that feels more dynamic and sport-oriented. The updated design dials back the sharper creases of the previous model in favour of softer curves, paired with slim matrix LED headlights. The revised 'Singleframe' grille has strong presence and the full-width rear light treatment adds to the Sportback’s visual appeal. Overall, it’s a very handsome vehicle.
Inside, the interior glow-up is immediately noticeable. The large new display takes centre stage in a redesigned dashboard that looks clean and appropriately sophisticated.
There’s a good mix of materials throughout the cabin, including the beige leather upholstery, although the presence of hard plastics reminds you that this is still a base grade. Even so, the cabin largely hits the right notes for a luxury entry point.
There are a few details that don’t quite land for me. The door-mounted control panel on the driver's side feels busy and a little fiddly to use, and creates an oddly sized and positioned pull handle that just doesn’t feel nice to use. And this is very much a nitpick, but the black stitching on the beige seatbelts catches my eye all the time. None of these are deal-breakers, but they stand out in an otherwise well resolved interior.
Commercial vans are typically not instruments of design, but rather a study in functionality. But credit to the Volkswagen designers because it clearly looks like a Volkswagen from the outside, despite its Ford lineage. While there are obviously some similarities between the Transporter and Transit Custom inside, the front-end design definitely has a visual connection to the previous generation models.
But, of course, functionality is important and by using the Transit Custom underpinnings, Volkswagen has been able to grow the Transporter. It is 150mm longer and the standard wheelbase has been stretched by 100mm, compared to the six-generation, which allows for even more cargo space.
The cabin is well laid out, with a new 12-inch digital instrument display and a 13-inch multimedia touchscreen taking prominence on the dashboard. The multimedia system includes built-in navigation plus wireless Apple CarPlay and Android Auto, as well as digital radio.
Up front, the cabin feels spacious and comfortable, with plush (heated) electric seats, while the driver also benefits from a two-position memory function, which is a plus if the car is shared. My main gripe is the short seat bases, which become noticeable on longer drives.
In the rear, comfort largely holds up, though space is better suited to two adults due to the high transmission tunnel. The 40/20/40 split-folding rear seat is a practical inclusion and helps when juggling passengers and longer items.
Storage is mostly well considered. There’s a generously sized glove box and a couple of useful storage bins in each door, although the centre console is on the smaller side. The dedicated phone tray is a highlight, housing the wireless charging pad, two USB-C ports and a 12-volt socket. Both rows get cupholders and bottle storage, while rear passengers also benefit from USB-C ports, climate control, directional air vents and map pockets. Overall, there’s just enough space and amenity for adults or teens to remain comfortable.
Technology is handled by the updated media display, which features a responsive touchscreen and a menu system that’s easy enough to navigate. Wireless Apple CarPlay and Android Auto are quick to set up, and the built-in satellite navigation is clearly laid out. That said, the near-total absence of physical buttons may frustrate some, with functions like climate control buried within the touchscreen. The number of pop-up disclaimers on start-up also feels excessive.
Boot space is where the Sportback’s sloping roofline has the biggest impact. Load height is limited, and capacity tops out at 515L with all seats in place, making it the smallest in its segment, albeit only by around 10L. I like the deep underfloor storage, along with the cargo cover, net and hands-free powered tailgate. However, the lack of a spare tyre, replaced by a repair kit, is a deal-breaker for me as a country driver, though it may matter less to those with easier access to repair services.
This is the really important element for any good commercial van, both the practicality of the cabin (as drivers spend long hours behind the wheel) and the cargo capacity in the back (for the obvious reasons).
Up front there’s a wireless charging pad and seven USB ports spread around the cabin. There are plenty of small item storage spots, and some not so small items, with a large shelf on top of the dashboard and multiple in-door shelves.
Of course, it’s out the back that’s really important and, as mentioned earlier, there is more space thanks to the larger overall dimensions.
Both SWB and LWB vans come with a plastic floor cover as standard, plus there are load rated tied tie down points, a 12V charging port in the D-pillar and LED lights in the roof.
Thanks to the extra length, the SWB has a 2.6m load length and 5.8 cubic metres of cargo space, while the LWB has 3.0m in length and 6.8 cubic metres. There’s also a steel fixed partition with window, window grille and load through hatch to stretch the usable space even more.
The total payload for the Transporter varies depending on the powertrain. The TDI 2WD can take up to 1062kg (SWB) and 1016kg (LWB), while TDI AWD can manage 963kg (SWB) and 917kg (LWB). The electric Transporter has a significantly lower payload, rated at 806kg (SWB) and 760kg (LWB).
Towing capacity also changes depending on the powertrain, the TDI 2WD can manage 2000kg, TDI AWD up to 2800kg and the electric 2300kg.
The Audi Q5 Sportback is offered with a choice of petrol or diesel engines, across two grades before stepping up to the more powerful SQ5 variants. For this review, we’re testing the base petrol TFSI grade, which is also the only front-wheel drive option in the line-up.
It carries a before on-road costs price of $84,500 and comes well stocked with features that often sit on the options list with key rivals. Aside from the Genesis GV70 2.5T, which remains hard to beat for standard inclusions, the Q5 Sportback TFSI stands out as one of the better value propositions at this price point.
New for this update is a large panoramic display that combines an 11.9-inch digital instrument cluster with a 14.5-inch central media screen. The system includes built-in satellite navigation, wireless Apple CarPlay and Android Auto and access to the 'Audi Connect' app. The app allows access to remote services like locking/unlocking to car, checking fuel/charge levels, sending navigation routes, car finder and monitoring vehicle status (warnings, last parked location).
Our test car is fitted with optional 'Pearl Beige' leather upholstery, which is a no-cost option. New design elements include a full suite of LED exterior lights, including matrix LED headlights and side puddle lamps.
Comfort is clearly a priority in this grade, with electric and heated front seats featuring lumbar support and a two-position memory function for the driver. Three-zone climate control, a wireless charging pad, multiple USB-C ports and 12-volt sockets, along with a 360-degree camera system round out the major tech highlights.
Practical touches haven’t been overlooked either, with a hands-free powered tailgate, cargo cover and net plus a 40/20/40 split-fold rear seat set-up.
In addition to the multiple powertrains, there’s also a variety of body styles to choose from - van in both standard and long wheelbase, Crewvan in both lengths and the long wheelbase Dual Cab.
The Transporter TDI (diesel) SWB van begins the range at $58,590 (all prices exclude on-road costs), while the same size with electric power is priced from $83,590; so the cost of going electric is a big one.
The diesel van LWB is priced from $60,590, and the electric van LWB $85,590, so the extra room is a much cheaper upgrade.
Standard equipment on the Transporter van includes 16-inch steel wheels, LED headlights and tail-lights, keyless ignition, climate control, cloth-trimmed seats, heated front seats and a four-speaker sound system.
Customisation is a key part of the commercial vehicle market, so Volkswagen has done its best to ensure aftermarket suppliers can use the Transporter as a platform to shape it into whatever customers need - delivery van, camper, etc.
For business operators Volkswagen Australia has done a deal with a company called Sortimo. The so-called Sortimo ‘1-Click’ is a new system, exclusive to Volkswagen, that allows owners to add interval shelving options to any VW commercial van direct from the dealer. This can be added at the time of purchase so it can be included in the financing for the car.
The Q5 Sportback TFSI is front-wheel drive and powered by a 2.0L four-cylinder turbo-petrol engine paired with a mild-hybrid system. Combined outputs sit at 150kW and 340Nm, which places it toward the lower end of the segment when stacked against rivals such as the Genesis GV70 2.5T and Mercedes GLC300 Coupe offering 224kW/422Nm and 190kW/400Nm, respectively.
On the road, however, there’s still plenty on offer for everyday driving, with power delivery feeling smooth and accessible. The seven-speed transmission shifts effortlessly, helping the Q5 Sportback feel refined and easy to live with, even if outright performance isn’t its headline feature.
As mentioned earlier, Volkswagen has been able to diversify the Transporter for now and into the future, which means the choice of diesel, electric and plug-in hybrid.
Despite the electrified additions, the most popular choice for buyers is overwhelmingly going to be the turbo diesel. The 2.0-litre four-cylinder unit makes 125kW of power and 390Nm of torque and is paired to an eight-speed automatic. It’s available either with front-wheel drive or Volkswagen’s '4Motion' all-wheel drive set-up.
The eTransporter is rear-wheel drive only, and has a single-speed gearbox attached to its 210kW/415Nm electric motor.
The PHEV isn’t here yet, but when it does arrive, Volkswagen has confirmed it will be producing 171kW/205Nm.
The Q5 Sportback TFSI has a claimed combined (urban/extra-urban) cycle fuel consumption figure of 5.7L/100km and paired with its 65L fuel tank offers a theoretical driving range of up to 1140km. An impressive result on paper.
After a mix of long highway driving and my usual urban runaround, real-world consumption settled at 5.8L/100km, which is almost spot on.
It also highlights the Q5 Sportback TFSI’s performance/efficiency trade-off. While its outputs are modest relative to some rivals it rewards you with excellent economy in real-world use.
Fuel economy for the diesel is rated at 7.9L/100km for the two-wheel drive variant and rises to 8.4L/100km for the 4Motion AWD.
Our test drive was limited, so we couldn’t get a fair real-world fuel figure, but if you can hit those claims, with its 70-litre fuel tank it has a theoretical driving range of 886km for the 2WD and 833km for the 4Motion - which should be enough to get even the more active delivery drivers through a few days.
As for the eTransporter, VW claims a driving range of 330km, with 125kW DC charging able to replenish the battery from 10-80 per cent in just 38 minutes. Volkswagen is confident that this should be enough to appeal to back-to-base-style operators looking to cut fuel costs and emissions.
There’s enough power in the base grade to keep things engaging on the open road, whether overtaking or maintaining pace, with a reassuring sense of reserves and smooth, punctual delivery.
Despite the firmer suspension, ride comfort remains high thanks to the newly tuned damping system, which absorbs bumps without sacrificing road feedback. The cabin is quiet at speed and at low speeds the car can switch to its hybrid system for extra refinement.
I’m not a huge fan of the adaptive steering assist, particularly on winding roads, as it can overcorrect at times. Overall, though, the Q5 Sportback delivers enjoyable, sporty dynamics.
Visibility is good from the front and sides, while the rear window is a little on the small side. It’s easy to get accustomed to the car’s dimensions and a clear 360-degree camera view comes standard across all grades, providing a clear view that automatically activates during low-speed manoeuvres. Parking this car is straightforward and stress-free.
Volkswagen is a company that prides itself on its driving dynamics, even when it comes to vans. Even with the Ford influence, the new Transporter unmistakably feels like a Volkswagen in the way it drives.
It's worth noting we drove the Transporter unladen, so it may respond differently when filled with cargo, but the fundamental behaviour should remain the same.
There’s no mistaking you’re behind the wheel of a big van, but the Transporter reacts well to your inputs, so it feels responsive and surprisingly agile for such a sizable vehicle.
The same is true for the turbo-diesel engine, which feels strong enough to pull the big van along with a minimum of fuss (although, again, that was without a full cargo load in the back). What the engine does well is perform quietly. The cabin is well-insulated from the outside world, so it makes for a more relaxed environment, which will be a welcome factor for anyone looking to spend their working day inside the Transporter.
We sampled the electric Transporter and it also performed well. Dynamically it felt very similar, despite being rear-wheel drive, but obviously the bigger difference is under the bonnet. The electric motor does a fine job, but it feels solid rather than being particularly punchy. The TDI feels like it does the work easier, even under acceleration which should be the electric motor’s strength.
The Audi Q5 Sportback carries a fresh maximum five-star ANCAP safety rating from 2025 testing. It comes with nine airbags, including side-chest airbags for both rows which is a standout feature, as these are often limited to the front seats.
The safety equipment suite is strong, featuring lane departure warning, lane keeping assist, side exit warning, blind-spot monitoring, traffic sign recognition, dusk-sensing LED headlights and emergency call capability. There’s also front collision warning, rear cross-traffic alert with assist and rear turn-assist. Adaptive cruise control is generally well-calibrated, though it can occasionally slow for vehicles outside your lane.
Autonomous emergency braking covers cars, pedestrians, cyclists, motorcyclists, and backover assist which is operational between 5.0 and 250km/h. Child safety is supported with two ISOFIX mounts and three top-tether anchor points, although only two seats fit comfortably.
This is an area previously overlooked, not just by carmakers but even the safety authorities. Given vans like the Transporter are on the road more than your average family car, it’s important to keep everyone safe.
There is no ANCAP score for the new Transporter yet, and the safety authority hasn’t crash tested the latest Ford Transit Custom, either. So there is clearly still some work to do before commercial vans get the same level of attention as passenger cars.
In terms of equipment, the Transporter comes with a range of active safety items including 'Front Assist' (with cross traffic alert and adaptive cruise control) and a rear view camera. There are also front and curtain airbags to protect the occupants.
The Q5 Sportback comes with Audi’s five-year/unlimited km warranty, which also includes complimentary roadside assistance - all fairly standard at this end of the market. A five-year pre-paid servicing plan is available for $3520, which is cheaper than the pay-as-you-go option, though it’s not the most competitive compared with some rivals. For instance, BMW offers the same coverage for $2475, while the Genesis comes with complimentary servicing.
You can also extend the service period by two years with the 'Audi Advantage Package' for an additional cost. Services are spaced at sensible intervals, every 12 months or 15,000km, whichever comes first, making maintenance straightforward and predictable.
Volkswagen says the Transporter and eTransporter require servicing annually or every 30,000km - whichever comes first.
The diesel is significantly more expensive to service, with even the cheapest visit costing $670 and the most expensive $892. Over the first five years the Transporter will cost $3880 to maintain.
By contrast, the eTransporter costs $410 for every visit, except the 90,000km major check-up which is $496. So over five years it will cost $2136 to service.
While VW has an expansive national network of dealers for servicing, and a history with commercial vehicles, that’s not a big advantage over its key rivals in this market - Toyota, Ford and Hyundai - which all boast the same.