What's the difference?
Peugeot Australia offers variants across the small, medium and large commercial van segments. Its largest model, the manual-only Boxer 160 which in 2020 features improved safety and warranty, competes in the LD (light duty) 3501-8000kg GVM class.
We recently put it to the test during a busy working week, to find out if it can land a few punches on its opponents in Australia’s heavy commercial vehicle division.
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.
It has its faults like any vehicle but it’s a competent all-rounder, that combines sub-$50K pricing with a big payload capacity, mostly user-friendly design, improved safety and a compelling warranty. It also faces stiff competition in the 3501-8000kg GVM class, particularly from rivals with an automatic option.
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.
It comes ready for work with hard-wearing black plastic in the most vulnerable places for scrapes and dents, including the front and rear bumpers and down the sides. The same black finish can be found on the window surrounds, door handles, huge door mirrors (which would not look out of place on a Kenworth) and the housing for the high-mounted third brake light.
It’s a large vehicle measuring 5413mm long, 2050mm wide and, thanks to the conspicuously high roof line, stands 2522mm tall. So, like numerous rivals in this weight class, it can’t access most shopping centre and underground carparks.
The front-wheel drive chassis, with its 3450mm wheelbase and 12.6-metre turning circle, features a simple and rugged combination of coil-spring strut front suspension, four-wheel disc brakes, power-assisted rack and pinion steering and single-leaf/solid beam rear suspension. Long rubber bump-stop cones, attached to the underfloor above each end of the rear axle, provide extra support when the springs compress under heavy loads.
The steel bulkhead, which separates the cabin from the cargo bay, insulates the driver/passenger from cargo bay noise and doubles as a robust cargo barrier. Its window is large enough to allow the driver to make a quick over-shoulder glance at any time to check the load is secure.
Criticisms? The relatively small 5.0-inch media screen can make the reversing camera’s vision difficult to see in detail. The height adjustment on the driver’s seat, using two levers on the lower right side, is clunky to operate. And although the rear barn-door windows are heated, there are no wiper/washers, which we didn’t get to test in wet conditions, which is most unusual for Melbourne.
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 Boxer 160’s 1865kg tare weight and 3510kg GVM results in a sizeable 1645kg payload rating. However, we always quote kerb weights (full tank of fuel) rather than tare weights (10 litres of fuel) to keep things consistent.
So, in this case, adding the missing 80 litres of diesel (67kg) results in a kerb weight of 1932kg, which reduces the payload by the same amount to 1578kg. That’s still almost 1.6 tonnes which is more than ample for this category. It's also rated to tow up to 2500kg of braked trailer and, based on European figures at least, can do this with a full payload.
The cargo bay provides a competitive 11.5 cubic metres of load volume and 10 sturdy load-anchorage points. Its floor, which is 3120mm long and 1870mm wide with 1420mm between the wheel housings, can accommodate two 1165mm-square standard Aussie pallets or three 1200 x 800mm Euro pallets. There’s ample forklift access through the rear barn-doors with full 270-degree openings or sliding side doors with their big 1250mm openings.
The high roof cavity means even tall adults can stand inside with headroom to spare. It also provides a large and very useful open storage area over the driver’s cabin, which is ideal for storing ropes, straps, load-padding and any other gear a hard-working van might need.
Although the side doors and barn-doors are lined to mid-height, the cargo bay walls are unlined which leaves numerous cavities exposed that could make small items like pens, keys, phones etc disappear if they were dropped. The load floor is also unprotected.
Cabin storage options include upper and lower bins in each door, with the lower bins being wide and deep enough to hold several large bottles. There’s also a full-width map shelf that sits about forehead height for tall drivers, which is easy to access and can hold heaps of stuff.
The dashboard also has numerous storage choices including open shelves to the right of the steering column and underneath it, cup/small-bottle holders in the centre of the dash and on top a fixed clipboard with spring-loaded clamp. There’s also a glovebox with another large open storage bin below it plus even more storage, about the size of a baking tray, under the driver’s seat.
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 Boxer 160 (which denotes its European horsepower or ‘PS’ rating) is available only with a 2.0 litre turbo-diesel engine and six-speed manual transmission, plus a choice of 4035mm long wheelbase or 3450mm standard wheelbase like our test vehicle, for a list price of $47,490.
It comes equipped with 15-inch steel wheels and 215/70 R15C tyres with a full-size spare, plus cargo bay bulkhead, hard-wearing rubber floor, 12-volt accessory socket and USB ports, height/reach adjustable steering wheel, two bucket seats with fold-down inboard armrests and lumbar adjustment and multimedia system with 5.0-inch touchscreen and sat-nav plus ample storage and more. There’s also AEB on the upgraded safety menu.
The only options available are three paint colours (Imperial Blue, Red and Aluminium Grey) in addition to our test vehicle’s standard Bianca White.
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 2.0-litre Blue HDI four-cylinder turbo-diesel engine, which meets the toughest Euro 6 emissions standard using AdBlue, produces peak values of 120kW at 3500rpm and 310Nm of torque at 1500rpm.
Peugeot claims this engine was tested for more than 10,000 hours, subjected to more than 1.3 million km of drive-testing and 16,000 thermal shock cycles (cold starting and accelerations), corresponding to 15 years of intensive use. In short, it should be tough enough. Transmission is a sweet-shifting six-speed manual.
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.
Peugeot’s official combined average is a fanciful 6.4L/100km. The dash readout was claiming a more realistic 9.0L/100km when we filled the tank after 282km of testing, which included more than a third of that distance lugging its maximum payload.
However, our own figure calculated from fuel bowser and tripmeter readings came in at 9.9L, which is more than 3.0L/100km above the official figure. Even so, sub-10L economy is very efficient for a vehicle of this size, so based on our figures you could expect an excellent real-world driving range of around 900km from its big 90-litre tank.
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.
You sit up high with the huge windscreen providing a commanding view of the road ahead. Clear eye-lines to the large door mirrors (with wide-angle mirrors in their lower thirds) provide ample coverage of side and rear traffic.
Vision through the central rear-view mirror is also relatively clear compared to the cluttered views found in numerous rivals we’ve tested. The join of the barn-doors obscures the mirror’s central portion, but the driver still has a good view of what’s behind.
The fold-down inboard arm-rests combined with the door contours provide balanced support for arms and elbows to reduce strain on neck and shoulders. This support is particularly good for the driver, as it also allows your hands to rest comfortably on the steering wheel.
There’s negligible cargo bay noise thanks to the bulkhead. However, engine noise is noticeable and tyre noise can be quite intrusive, particularly at highway speeds on coarse bitumen surfaces. Cruising in top gear results in a fairly relaxed 2100rpm at 100km/h and 2300rpm at 110km/h.
The engine, with maximum torque at 1500rpm, has good all-round performance and pulling power under heavy loads, but lacks the sharper throttle response of some rivals. Even so, the manual gearshift has a light but well-defined action combined with a light clutch pedal weight.
Steering is nicely weighted and the quartet of disc brakes have plenty of bite. Handling and stability are also good regardless of load. The rear suspension tuning is commendable when running without loads on bumpy roads, providing a surprisingly smooth ride given spring rates that are designed to cope with 1.5 tonne-plus payloads.
Our only gripes are that the driver’s seat’s adjustable lumbar support presses too firmly against the spine for our liking, even on its softest setting. We also detected a couple of rattles and squeaks on bumpy roads, which sounded like they were coming from the dashboard area.
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.
There’s no ANCAP for this vehicle segment but the Boxer would probably score well if there was thanks to the latest features like video autonomous emergency braking, forward collision warning, lane-departure warning, LED daytime running lights, reversing camera, rear parking sensors and more. There’s also driver and passenger front and side-curtain airbags.
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 Boxer is covered by Peugeot's five years/200,000km warranty and scheduled service intervals of 12 months/20,000km, whichever occurs first. Capped-price servicing applies for the first five scheduled services with a total cost of $3445 valid until June 30, 2020.
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.