What's the difference?
Following its global launch in February this year, the second-generation 'U10' 2024 BMW X2 and iX2 have landed in Australia.
The coupe SUV range comprises four variants with turbo-petrol and pure electric models sitting alongside each other in showrooms with precious few visual differences.
That'll either be a good or bad thing, depending on how much you want to parade your choice to go for current or combustion.
More clear cut is the X2's new – and more sensible – position in BMW's SUV line-up. Rather than a quirky curio that's smaller and less practical than the X1, the 20cm longer gen-two X2 finally makes sense in BMW's X line-up.
To see if the driving experience and build quality live up the shiny new exterior, we've been invited to Tasmania to sample the new car's attributes on typically testing (and picturesque) roads.
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 second-generation BMW X2 is leagues better than the car it replaces. It now sits nicely in BMW's line-up and offers genuinely tempting electric variants.
This isn't an affordable car by any means but next to rivals from Mercedes-Benz and Volvo, the well-equipped iX2 xDrive30 feels a complete package.
Similarly, the entry-level xDrive20i petrol is a very compelling choice with a comfortable ride and sporty drive.
We'd skip the contrived M35i unless your heart is set on going quickly in a straight line. With the thinking cap on, it's also hard to make a case for the X2 over the objectively better (and more affordable) X1. Then there's the more spacious, powerful, efficient and cheaper Tesla Model Y.
That's not really the point of this car, though. It'll never sell in as many numbers as the X1. Those who love its fastback styling will be pleasantly surprised by the new X2. It does what it says on the tin, marrying the BMW badge with a sporty drive and daring style.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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 entire point of the BMW X2 is to grab attention and promote conversation. The X2's new-found success comes mainly from bigger proportions - it's grown 194mm over its predecessor and 54mm longer than X1.
It's 64mm taller and sits on tracks that have been pumped by 21mm. All the changes are built into the latest iteration of BMW/Mini's transverse UKL2 platform.
The result is presence and swagger on the road for the X2. Even the base car grabs attention, while electric iX2 variants get unique closed-off grilles and a different front bumper treatment.
It's the M35i thats most eye-catching, though. A jutting lower spoiler and butch stance highlighted by horizontal kidney grille slats and quad exhaust tips. Our test car was finished with massive (and optional) 21-inch alloy wheels.
As successful as the whole package is, there are fussy elements: the boxy rear end, awkward spoiler and peculiar tail-lights. From some very specific angles there's even a hint of SsangYong Actyon to the proportions.
The iX2 and X2 aren't made to appease everyone, though, so you don't have to love it.
Inside is a different story with elegant simplicity the X2's remit. It's much like an X1 in layout with crisply integrated curved screens running the latest iDrive 'OS9'.
Apple CarPlay was faultless (wireless Android Auto is also included) yet connected navigation makes it easy to rely on BMW's in-house features.
You get 90 days free use of BMW Digital Premium, which includes the ability to download games and apps as well as more advanced connected navigation. After the trial, you'll need to pay monthly ($9.99) or annually ($109) for the services.
The X2's door pulls and handles are particularly nice to interact with, blending visual lightness with reassuring sturdiness.
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.
Despite the X2 living dangerously in the style department, it hasn't sacrificed cabin practicality – at least in the front seat.
A vertical wireless charging pad holds a phone in like a kid on a rollercoaster (important, as you'll read later, because the X2 range has some serious back-road talent) with nearby USB-C plugs for additional charge.
The door bins easily fit a one-litre camping bottle, there's good storage for small bags beneath the floating armrest (which has a very small cubby for keys or mints) and a sizeable glove box.
As you'd expect from a German-built BMW (all X2s hail from Regensburg) build quality is excellent... save for the flimsy indicator stalks. The latest oblong engage with a limp click that's a far cry from the damped thump of older BMWs, such as the E90 3 Series.
The cabin materials are pleasing to touch with quality stitching and soft padding on heavy touch areas. Geometrically patterned trim inserts add some cabin flare and look sturdy as well.
The X2 and iX2's back seat is not as good as the BMW X1's – none of the proverbial thanks, Sherlock.
Under the sloping roof headroom will be acceptable for 175cm adults and knee room is passable. Despite sharing underpinnings between electric and combustion variants there's minimal spatial compromise.
There are ISOFIX ports and top tether anchors for all seating positions. Vents are mounted in the centre console and there is a fold-out armrest with cup holders. Doors open relatively wide for a 'coupe' as well.
Of some concern is the X2's narrow bench; the body-work sculpted appearance of the coupe tail results in lots of shoulder room intrusion. To put it in simple terms, it's best capped at four occupants.
The boot is at least very generous, offering between 525L (iX2) and 560L (X2) of VDA space.
The load bay is long and there is no load lip to lift items over. Seats fold in a 40:20:40 configuration, growing capacity up to 1400L.
Neither the X2 or iX2 is fitted with a spare tyre, so its mobility kits for X2 owners.
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 2024 BMW X2 range spans $75,900 to $92,900 before on-road costs. Surprisingly, it's the M35i that's dearest, rather than the electric iX2 xDrive30 ($85,700).
There's no three-cylinder price leader in the X2 range as there is in the X1 and your body kit choice is M Sport, which explains why, trim-for-trim, the X2 xDrive20 $5000 dearer.
Once you've added the $3000 M Sport pack to the X1 xDrive30, though, you're only $2000 off the X2 for equivalent spec levels.
Some highlights include 'Veganza' artificial leather upholstery (in black, Oyster or Mocha), 19-inch alloy wheels, M Sport kit including adaptive dampers, 'Iconic Glow' illuminated kidney grilles, adaptive LED headlights, head-up display and 10.7-inch touchscreen with BMW's slick ninth-gen operating system – this equipment is shared with the iX2 xDrive30.
The $82,900 (before on-road costs) single-motor iX2 eDrive20 is more basic, missing adaptive cruise control, lane-trace assist, power seat adjust and front seat heating. All EV models include tyre pressure monitoring, acoustic pedestrian warning, 12-month Chargefox subscription, and Mode 2 and 3 charging cables.
Being a BMW there are options on the table. An enhancement pack comprises metallic paint, a sunroof, Harman/Kardon sound system, steering wheel heating and adjustable lumbar support with massage function for $3615 on the iX2 xDrive30 and $4700 on the X2 xDrive20.
Cleverly, BMW has priced the iX2 xDrive30 beneath the luxury car tax threshold – significantly benefiting those looking at buy via a novated lease – even with the enhancement pack and metallic paint. Something Mercedes-Benz hasn't been able to achieve with its $102,900 twin-motor EQA350 rival.
An M Sport Package Pro is available for all variants adding dark finish headlights and extended piano black exterior trim, M Compound brakes, M seatbelts and 20-inch 'style 873' alloy wheels.
That pack is gratis on the flagship M35i xDrive which benefits from a higher 233kW tune of its 2.0-litre turbo-petrol four-cylinder and a torsen limited-slip differential on its front axle.
The pictured M35i was finished in $5000 worth of matte paint, in this case Frozen Pure grey. Portimao blue is also available along with regular metallic paint ($1800).
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.
BMW's internal combustion engines are responsive and slick in the X2, while the iX2's well-calibrated electric powertrains deliver pleasingly instant pick-up.
The range kicks off with a heavily revised version of BMW's all-aluminium 'B48' 2.0-litre four-cylinder in xDrive20i tune. It produces 150kW and 300Nm, enough to hit 100km/h in 7.4 seconds from rest.
Like the xDrive20i, the M35i employs a seven-speed dual-clutch transmission driving all four wheels.
Australian M35is are more powerful than European models, developing 233kW and 400Nm for a 0-100km/h sprint in 5.4 seconds. A freer-flowing exhaust is augmented with active sounds for a fruity (if synthetic) note.
BMW offers a pair of electric powertrains with the 150kW front-drive eDrive20 and twin-motor 230kW/494Nm iX2 xDrive30.
We only sampled the more powerful one which features Hans Zimmer-composed sound scapes and an impressive turn of pace, hitting 100km/h in 5.6 seconds (claimed).
It is limited to a 180km/h top speed which may pose an issue on German Autobahns but is no trouble in Australia.
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.
Rated at 7.5L/100km (xDrive20i) and 7.8L/100km (M35i), after a 130km jaunt, the M35i's trip computer showed 9.8L/100km.
Premium 95 RON or higher is required and the fuel tank holds 54 litres.
For the iX2 xDrive30, consumption was above the WLTP rating. We saw 18.2kWh/100km on our hilly country route which would equate to 356km from a charge of the 64.8kWh lithium-ion battery battery.
The 417km WLTP driving range figure is at 15.5kWh/100km, we'd expect to get closer to the rated figures in more typical urban and suburban use cases.
Regenerative braking was quite pronounced (there are four setting: Adaptive, Low, Moderate and High) and on a descent into Hobart the xDrive30 managed to boost charge levels from 27 to 29 per cent.
As for regular charging, the iX2 will take DC electricity at 130kW, meaning 29 minutes from 10 to 80 per cent. That interval allows you to roam around 290km between charging stops on a long run.
One great aspect of both iX2 variants are their fast 22kW AC charging capability. It means the iX2 can go from flat-full in under four hours, rather than eight hours on an 11kW wallbox.
Though most owners won't have access to three-phase electricity, this suits public charging – such as at shopping centres or destinations – very well.
Another boon is BMW's inclusion of both Mode 2 and Mode 3 charging cables and a 12-month ChargeFox subscription.
Home wallbox installation isn't included in the deal (Lexus offers this with its UX300e) though BMW does offer the service at a cost for those who want it.
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 previous-generation X2 always felt a bit more Audi or Volkswagen than BMW in the way it went down a road.
This latest iteration has a secure, dynamic balance more in-keeping with the blue-and-white roundel and is far more impressive than its predecessor.
We spent our first leg in the performance-oriented M35i. The punchy engine, front-biased AWD and slick transmission felt just right in the sporty small SUV.
It sits 15mm lower than the other variants on differently tuned springs and adaptive dampers.
The M35i holds onto the tarmac like a limpet with minimal body roll at very high limits partly thanks to the efficiency-oriented 245/35R21 Continental Eco Contact 6 Q tyres.
Yet this comes at the cost of adjustability. With such tight rebound damping in Sport and Sport Plus modes, the M35i's body is too tied down. Even in Comfort, the M35i hopped and fidgeted over Tasmania's broken tarmac, a trait not aided by the 21-inch alloys.
We would have preferred more build-up in the steering weight, too, given the sporting intentions. That chubby wheel rim does its best to remove any sensation of feedback, too.
BMW's iDrive is mostly fantastic except when it comes to changing drive modes, which you need to do fairly regularly in the M35i.
More than just normal – or Personal here – there's configurable Sport and Efficiency modes. There's also Digital Art and other less useful options.
Thankfully, the xDrive20 is much sweeter. Even optioned up with the 20-inch alloy wheels the ride is a lot more agreeable and well-suited to Tasmania's lumpy roads.
All the damper modes were usable with Sport providing welcome extra support without being too strict. Turning into corners felt more natural in the xDrive20 thanks to a bit more body roll which helps communicate grip levels.
The xDrive20i did feel low on grunt after the M35i and iX2 xDrive30 but that was only in a direct comparison - grunt levels were plenty once accustomed. We did miss the M35i's front limited-slip differential on loose surfaces, but it wasn't a deal breaker.
Seeing that the iX2 xDrive30's kerb weight was 325kg higher than the M35i (2020kg) set alarm bells going initially. That's a lot of extra weight for a 'small SUV' to be carrying around, and is beyond a Tesla Model Y Long Range (1979kg).
The iX2 uses the same kinematics and suspension components as the petrol cars but in completely retuned states. Encouragingly, the result is rather excellent.
You do notices the weight when pushing through patchily surfaced corners. The iX2 bobbles and hops occasionally as you approach the damper's limits, but to their credit they never gave up.
That light steering – which is frustrating in the M35i – aids to disguise the xDrive30's extra mass, too. As all X2's are front-biased AWD models, they never quite reach the dynamic heights of BMW's Cluster Architecture models.
Still, grunt is prodigious and, although it's officially slower than the M35i, the xDrive30's rolling response is predictably excellent. BMW has done a great job calibrating the regenerative braking, too.
I found Moderate was my preference, and because the brake pedal blends caliper and regenerative forces you lose precious little range from not having it jacked all the way up.
The iX2 is quiet inside, too. There's almost no wind intrusion and tyre roar is kept to a bare minimum inside, especially impressive given that the M35i sends quite some road noise into the cabin.
Returning through Hobart's outer suburbs, we notice some shortcomings. The iX2's high bonnet, low-set seating position and letterbox rear glass with protruding rear lip spoiler mean visibility is compromised. The X1 doesn't suffer from such issues.
That's the cost of visual flare and the excellent 360-degree camera and head-up display help to alleviate guesswork and keep eyes on the road.
The M35i didn't feel the most complete on the road. If you're chasing a sporty coupe statement at this kind of price, the BMW 230i coupe is a great driver's car.
Instead, you're better to spend money on either the xDrive20i or iX2 xDrive30 with some choice options and enjoy a slick coupe SUV driving experience.
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 BMW X2 and iX2 are yet to be rated by ANCAP or Euro NCAP.
The X1 and its electric cousin scored five star ratings in 2022 under a less stringent set of tests.
Standard safety equipment includes seven airbags, frontal AEB with day/night pedestrian and cyclist detection, blind-spot monitoring, adaptive cruise control, speed sign detection, lane-departure warning, lane-keep assist and driver attention monitoring.
Systems such as anti-lock brakes, electronic bake force distribution and electronic stability control are all standard.
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.
Since 2022, BMW has backed all of its cars with a five-year/unlimited kilometre warranty.
You’ll need to service the iX2 ands X2 based on condition, rather than kilometres traveled. The multimedia system will prompt you when it's time to visit a workshop.
You can pay upfront for service plans with BMW: a five-year servicing package will cost you $3171 for the petrol X2s, while the iX2 is $2186 for six years.
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.