Tiguan and Golf hybrids on the way? Volkswagen Australia shares new plans as local testing clears the way for its internationally popular Toyota RAV4 and Corolla-rivalling electrified models

Volkswagen has thus far strayed away from launching its hybrid models in Australia, facing hurdles in ensuring its new-generation engines will be compatible with lower quality Australian fuel, but this is set to change in the coming years.

Last year saw the brand dip its toes in the hybrid water, as it confirmed it would be bringing the flagship Touareg R plug-in hybrid to Australia towards the end of 2022 or even early 2023.

Speaking to CarsGuide at the launch of the Tiguan R and Golf 8 R, the brand’s director of product, Michal Szaniecki, explained the brand was investigating bringing more of its mainstream plug-in hybrid models to our market.

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“We think the market will evolve in both directions; both battery electric and plug-in hybrid will have a portion. Right now, we are looking at bringing Tiguan and Golf in with a PHEV powertrain in 2023,” he said.

The new-generation Golf 8 is available overseas with multiple plug-in hybrid variants, including the eHybrid, which has a 150kW/350Nm combined power output from its 1.4-litre four-cylinder petrol engine and electric motor, and the GTE which is essentially an electrified version of the GTI, sporting a combined combustion/electric output of 180kW/400Nm using the same engine, but with an electrified boost function. The standard eHybrid can travel up to a claimed 80km on a full electric charge, while the GTE is said to travel 62km on a full charge.

Meanwhile, the Tiguan eHybrid pairs a 1.4-litre four-cylinder engine to an electric motor for a combined output of 180kW/350Nm, and is able to travel a claimed 50km on a single electric charge. 

Both the Tiguan and Golf eHybrids can charge at a max rate of 3.6kW on a European Type 2 standard AC charging cable.

So, what has changed to allow the hybrid models access to the Australian market in the near future? Elaborating, Volkswagen Group director of communications, Paul Pottinger, said: “The eco engine issue has been overcome. It can run on premium unleaded. We’re not worried about the petrol particulate filter now because we’ve done extensive testing in Australia to show it can work.”

“Dealers have been briefed on ensuring customers know they need to use premium,” he said. “95 and 98 are a must as ostensibly they have the same level of sulphur. 50 parts per million. We really do have to stress to customers not to use 91, to avoid the temptation with fuel prices the way they are.”

In Australia, base 91RON unleaded petrol can have up to 150ppm of sulphur content, whereas in Europe it is limited to 10ppm across all petrol fuel grades (although the minimum octane number in Europe is 95).

Ultra-low sulphur fuel is set to be refined in Australia by 2024, or at the absolute latest 2027 thanks to a government upgrade package designed to create a Euro 6-equivalent petrol and diesel standard in Australia. Volkswagen says by the time it has phased out its older engine technology in Australia, fuel standards should be less of a concern.

Also of concern to Volkswagen is the Victorian government's road user charge, which Mr Pottinger labeled 'insanity' in May last year. 

In the case of a plug-in hybrid, the owner is stung with taxes twice, once for the fuel excise and again for the state's per-kilometre zero-emissions driving charge, as governments fear a reduction of revenue in the era of electrification. 

At the time of the announcement, the road user charge was criticised as being a world-first EV disincentive.