What's the difference?
The Audi SQ8 has had a mid-life refresh but this upper large SUV still offers luxury with its powerful V8 engine that fans know and love, as well as the features you would expect in a top model.
It competes against the Mercedes-AMG GLE and Porsche Cayenne but we’re family testing the SQ8 to see how it handles domestic life.
Keep reading to see what we’ve discovered.
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 Audi SQ8 isn’t your typical performance SUV. It’s more refined and less flashy. The tech can be more complicated than it needs to be and if you’re wanting that V8 soundscape, you won’t find it here.
However, the handling and on road experience are superb plus you can comfortably haul the family around and look good doing it.
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 SQ8 is a gorgeous coupe-style SUV that looks purposeful and poised with its balanced proportions and wide stance. It’s stands apart from its siblings thanks to the S-styled nose treatment and our test model's black accent package makes the honeycomb grille look even sportier.
The update sees new air intake vents at the front, matrix LED headlights and new chrome exhaust tailpipes.
The upgraded 23-inch alloys with red calipers behind them hint at what’s under the bonnet, as does the Sakhir (sack-heer) Gold paintwork which is aptly named after the one-off Grand Prix race circuit.
The interior looks luxuriously appointed with the black Valcona leather upholstery and the dash is headlined by three high-end technology screens. The SQ8 also gets sport seats featuring a quilted design and 'S' badging but there’s not much else separating it from its siblings.
Audi fans will love the the SQ8's more understated interior but newcomers might be surprised it's not as flashy as some of its rivals.
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.
The upper large SUV tag certainly makes sense when it comes to cabin space because there's a lot of it. Both rows enjoy ample head- and legroom and access is great thanks to wide door apertures and high ground clearance.
Comfort is high with well-padded seats and thanks to the Sensory Package all but the middle back seater get some luxury extras.
The centre rear position has compromised legroom courtesy of the transmission tunnel, so it's best for a kid. However, the front seats take the cake with their massage, heat and cooling functions and adjustable supports.
Amenities are great throughout the car and the extendable sun visors, rear electric sunshades, soft-close doors and four-zone climate control clinch the practicality deal.
Individual storage is a bit sparse up front with two cupholders, a drink bottle holder in each door and a shallow middle console that realistically only fits a phone.
The glove box is a great size. I can fit my handbag in it, but there are not a lot of areas to pop your smaller items in.
Individual storage is a bit better in the rear as you get two big map pockets, a drink bottle holder in each door, plus two cupholders in the fold-down armrest - so it feels like you have more places for your bits and pieces.
Technology looks amazing but overwhelming to use until you wrap your head around it all. The haptic feedback also gets tired fast. The built-in satellite navigation is super simple while the head-up display and digital instrument cluster feature pull through directions, which is handy.
Charging options are good with each row getting two USB-C ports and a 12-volt socket but the front also enjoys a wireless charging pad. The pad is slow to charge, though, and left my iPhone feeling super hot whenever it was used.
The boot is a good size at 605L and easy to access, too. The sloping roof means larger items have to sit flush with the seats but you shouldn’t have to worry for road trips.
The back seat has a 40/20/40 split which opens up storage options and this model has a powered tailgate.
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.
There are three fuel-based variants for the Q8 and the model on test is the top-spec SQ8 TFSI quattro. Its mid-life refresh has seen a price hike of $10,015, bringing it's before on-road costs price to $178,815.
Our test vehicle has also been fitted with a few extras, like a 'Sensory Package' ($14,400) which includes a black headliner, upgraded 23-speaker Bang & Olufsen 3D surround sound system, massage function for the front seats, heat function for the rear outboard seats, electric sunshades for the rear row and an air-quality perfume function.
Also fitted are various black and matt carbon accents across/inside the body for a total of $5400, optioned 23-inch alloy wheels ($3000) and specialised 'Sakhir Gold Metallic' paintwork for $1600. Which brings the total MSRP price tag to $203,215.
Even with all of these extras, the SQ8 is still the most affordable performance SUV compared to its nearest rivals as the Porsche Cayenne GTS starts from $212,600 MSRP and the Mercedes-AMG GLE 63 outstrips them both at $272,300 MSRP.
As you'd expect the standard features list is robust for the SQ8 and includes premium features like a panoramic sunroof, electric front seats with heating/cooling and memory functions, full-leather upholstery, soft-close doors and a heated steering wheel.
There is a bunch of high-end technology throughout which includes a colour head-up display, 10.1-inch touchscreen multimedia system, 8.6-inch climate control panel, 12.3-inch digital instrument cluster, satellite navigation, wired/wireless Apple CarPlay and Android Auto, digital radio, four USB-C ports, three 12-volt sockets and a wireless charging pad.
Practical features include keyless entry and start, rain-sensing windscreen wipers, dusk-sensing LED headlights, a powered tailgate, adaptive air-suspension and four-zone climate control.
Overall, not a bad list of features for this part of the market and you won't be left wanting.
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.
Our test vehicle has a 4.0-litre, twin-turbo petrol V8 engine that produces 373kW and 770Nm. That means it sits in the middle of its rivals in terms of outputs with the Mercedes being top-dog with its 450kW/850Nm combo.
Still... the SQ8 is no dainty flower when it comes to power delivery and has an impressive 0-100km/h sprint time of just 4.1 seconds.
The SQ8 is a full-time all-wheel drive with an eight-speed auto transmission and the whole engine combo delivers a powerful but elegant on-road experience.
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 official combined (urban/extra-urban) fuel cycle figure is 11.9L/100km, which is lower than its rivals.
My real world usage sits at 12.3L/100km after a mix of open-road and urban driving.
This result is decent for a performance SUV but expect it to be thirsty in an urban environment as the on-board gauge hit the mid-20s in the city.
Based on the large 85L fuel tank theoretical driving range is 714km and around 690 using our real-world result. Respectable for a performance SUV but not as good as some family SUVs.
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.
The SQ8 delivers on power because it’s effortless to get up to speed and the pick up is super responsive when the start/stop function is turned off (otherwise there can be some lag).
The engine doesn’t sound like a big and grumbly V8, though. There are some growls but it’s mainly when you turn the engine on and not to be obnoxious about it but if you're in a V8, you want to hear it as it’s part of the fun of having a big bruiser engine like this!
What doesn’t help the V8 soundscape is the fact the cabin sounds like a noise-cancelling headphone inside. There is a small hum from road noise but it’s pretty darn quiet. Almost EV quiet at times but that means the driving experience leans more towards refined and elegant rather than sporty and fun.
The SQ8's handling is great - super direct steering, stable in corners and well-rounded passenger comfort when it comes to suspension.
You still get road feedback, which I like as a driver, but it’s not too stiff thanks to the adaptive suspension.
The SQ8 is a large car but you wouldn’t know it when it comes to parking. The 360-degree view camera is clear and the dynamic guidelines help you to position this big unit even the smallest of car parks.
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 SQ8 has a maximum five-star ANCAP safety rating from testing done in 2019 and features eight airbags, including side chest airbags for both rows. It's common to only find the latter in the front – so that’s great for a family car.
The SQ8 scored well across its ANCAP individual protection segments, scoring 93 per cent for adult occupant, 88 per cent for child occupant, 71 per cent for vulnerable road user and 75 per cent for its safety assist.
The SQ8 has a long list of safety features including blind-spot monitoring, safe exit warning, driver attention monitor, fatigue reminder, matrix LED lights, SOS call, forward collision warning, rear collision warning, rear cross-traffic alert, lane keeping/departure aids, tyre pressure monitoring, adaptive cruise control (with stop & go and lane keeping), park assist and a 360-degree reversing camera plus front and rear parking sensors.
The rear row features two ISOFIX child seat mounts and three top tether anchors.
The SQ8 has AEB with car, pedestrian, and cyclist detection and is operational from 10 – 250km/h but it is usual to see this system operate from as low as 4.0km/h.
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 SQ8 comes with a five-year/unlimited km warranty, which is a normal term for the class.
It also comes with capped servicing for five years or up to 75,000km and averages $920 per service, which is very good for the segment.
Servicing intervals are reasonable at every 12-months or 15,000km, whichever occurs first.
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.