What's the difference?
Back in the day, the 3 Series sedan was often the entry to the brand for first time BMW owners, and for good reason. They offered practical interior space without compromising on engine performance.
And they simply looked good, no boring nanny design elements. Then the 1 Series came along and price points bumped up, so how does the ‘entry’ BMW 320i M Sport live up to its long-standing reputation?
With an updated dashboard that brings the interior and tech up to market and a sharper exterior design, it more than holds its own at the table of luxury sedans, despite hard competition from the likes of the Audi A4, Mercedes-Benz C200 and Jaguar XE.
However, if the Merc is a placid and well-behaved mare… the BMW is the barely-broken-in bronco and it takes a certain kind of ‘rider’ to enjoy what the 320i has to offer.
I’ve been discovering just that this week with my family of three. What did we find out? Read below!
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.
I thoroughly enjoyed my time in the BMW 320i M Sport. It’s fun to drive and I felt connected to what the car was doing on the road. The harder ride may not appeal to some but I didn’t mind it. The cosy back seat and boot mean it will probably suit a smaller family best and one which doesn’t have to worry about carrying a lot of gear around regularly, but it suited my needs just fine.
I reckon this is a car for those drivers who don’t want to compromise on performance but still have a kid or two. If you’re after the cushioned comfort of a Merc, this won’t appeal but I didn't want to give this one back and happily give it a firm 8/10.
My son liked the sports car looks and enjoyed the amenities in his row. He gives it a 10/10.
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.
Sharper than its predecessor, the new 320i has LED everything with the rear lights being longer and curving around to the sides of the car.
The classic 'kidney' grille is darkened and more pronounced, with the black panelling extending to the rear to create an unapologetically sporty presence. A presence that’s accentuated by the twin exhausts.
The batcave interior with its black headliner, black seats… black everything, looks smart and stylish.
You do have a fair bit of harder touchpoints throughout but the customisable ambient lighting helps to soften the overall effect.
With its 2068mm width, 4709mm length and 1435mm height, the sedan makes its presence known without feeling cumbersome to manoeuvre. Urban dwellers need not fear their local car park!
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.
For such a sleek looking sedan, it’s generous up front with plenty of head and legroom.
You can adjust the seat to sit quite low and both front seats have extendable under-thigh supports, which should excite taller drivers.
My 189cm (6’2”) brother has the 328i and is very comfortable but taller front passengers will encroach on back seat passenger comfort.
The front seats are quite firm on the backside, they also lack adjustable lumbar support, so expect to stretch the kinks out on a longer trip.
The amenities and tech feel well thought out and easy enough to use. The 12.3-inch touchscreen multimedia system looks great and has the best-looking graphics I’ve sampled.
The BMW system is intuitive to use once you get used to it. If you’re not interested in using the touchscreen, you can also utilise the rotary-wheel for menu selections.
There’s also Bluetooth connectivity, wireless Apple CarPlay and Android Auto plus built-in satellite navigation.
The 12.3-inch digital instrument panel is customisable and the information displayed simply but you won’t really look at it because of the head-up display.
Front occupants enjoy a wireless charging pad for their smart phone, a USB-A and USB-C port plus a 12-volt socket. Rear passengers get a couple of USB-C ports, too.
The storage is good for this size sedan but overall passenger room takes priority, but the glove box and middle console will suffice for everyday use.
While it may not excite others, I love the big bottle holders in the doors. They’re large enough for my big 1.5L bottle and angled for easy access. These are found in the rear doors as well.
Back seat passengers enjoy climate control, directional air vents, two cupholders, netted map pockets and reading lights.
My six-year old was happy with the amenities and lower ground clearance because he felt comfortable and had his independence.
The boot offers a good capacity of 480L and the aperture isn’t too narrow, so you can comfortably access items if they roll to the back.
I had plenty of room for my little family’s needs but if you’re a larger family, you may need to get strategic with gear storage.
Being a base model, you do miss out on a powered tailgate, which is a shame but not too much of an issue given this is a sedan and the lid isn’t heavy.
There’s also no spare tyre or even a puncture repair kit but you have run-flats, so you should be able to limp to a service centre if need be.
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 seven variants for the BMW 3 Series sedan and our model is the base model for the petrol variants.
There is a plug-in hybrid version, the 330e, if you’re after a more fuel-efficient option but it will up the price by about $20K.
As it stands the 320i M Sport is $78,900, before on-road costs. Our model has been finished in 'M Brooklyn Grey', which adds $1539 to the price.
That puts it at a similar price point as its rivals. You get a well-specified package with the M Sport but it doesn’t have the same sense of cushioned comfort as the Merc does, but more on that later.
Still, the sporty and streamlined interior is headlined by BMW’s dual 12.3-inch screens that sit propped on the dash like a futuristic cockpit.
The mix of synthetic leather and cloth seats are electric and have adjustable side bolsters for when you want to go hard in a turn.
The interior also boasts a sunroof and wireless Apple CarPlay and wired Android Auto. There are some other highlights like the 18-inch alloy wheels, leather steering wheel and the crystal-clear head-up display, to name a few.
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 320i M Sport has the ‘baby’ engine in the 3 Series line-up but the 2.0-litre, four-cylinder turbo-petrol powertrain still delivers on power with a maximum output of 135kW/300Nm.
This is a rear-wheel drive and has an eight-speed auto-transmission which delivers very smooth gear changes.
Despite having the smaller engine, it can still go from 0-100km/h in just 7.4 seconds.
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.
In a world with rising fuel prices, the efficiency of this decently powered sedan should excite you.
The official combined fuel cycle is 6.5L/100km. Real world testing saw my figure at 7.4L/100km after a mix of open-road and urban driving this week.
I thought that was great for how hard I drove it and for the power, you won’t be wincing when you put your foot down. I would expect it to be higher in an urban setting.
The 320i has a 59L fuel tank and based on the official combined cycle figure, you should get just over 900km of driving range, which is great, especially if you do 'roadies' like me!
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 a lot that I like about how this performs but a highlight is how eagerly the car responds when you accelerate.
However, it’s not unbridled power. There’s no bucking at the front or shuddering through the steering wheel. It’s controlled but still very fun.
The lower centre of gravity and coupe-like height of this does mean it handles corners well and the bolstered seats hold you firmly into place, meaning you can be free to drive this a little harder than you might normally. Which I did and can confirm it handles itself well.
This has the M Sport suspension, which means it’s stiff, but you feel very connected to the road.
You do get a lot of talk-back from bumps in the road but unless you hit a big pothole, you never feel rattled by them.
But it is a harder ride than other luxury models, which doesn’t bother me as I like the handling, but if you want limo-like comfort, look elsewhere.
The cabin is very nice to spend a lot of time in and relatively quiet, even at higher speeds.
The 11.4m turning circle and sleek dimensions makes it very handy to park, even in tight car parks. The nose is long but the front and rear parking sensors take out any ‘will I make it’ moments and the super clear reversing camera is great.
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 safety list includes a suite of features and the following come as standard: adaptive cruise control, auto emergency braking (operational from 5.0-210km/h), blind-spot monitoring, speed sign recognition, forward collision warning, SOS emergency call button, daytime running lights and rear cross-traffic alert.
I like the intelligent seatbelt reminder and that the bonnet is considered 'active', meaning it will lift up and away from the engine if the sensors detect that a pedestrian has been hit.
However, I have to call out the lane departure and keeping aids. It’s a hit or miss system and I tested it extensively this week once I noticed it.
You can customise the sensitivity levels and even on the highest sensitivity, it works too sporadically for my liking. BMW should improve this system for future instalments.
The 3 Series has been awarded a maximum five-star ANCAP safety rating but it was done a while ago in 2019. It only has seven airbags and is missing the newer front centre airbag.
There are ISOFIX child seat mounts on the outboard seats and three top tether anchor points but the back seat is a bit too narrow to comfortably fit three child seats side by side.
You'll be able to fit a 0-4 rearward facing child seat but may struggle if you're a tall family.
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 320i comes with a five-year/unlimited km warranty, which is standard for this class.
You can choose between a three- or five-year capped-priced servicing plan. The five-year plan costs just $2150, or $430 a year, which is competitive for this class.
Like other BMWs, servicing intervals are condition-based, with the car letting you know when it needs to be serviced.
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.