What's the difference?
Is there a class of vehicle more overlooked in Australia than the humble light van?
While the pragmatic and often hatchback-based small van is dwarfed in size and sales by the popular ute as the commercial vehicle of choice here, the case is completely reversed in Europe, where light commercial vans dominate city streets, favoured for their compact nature and relative fuel efficiency.
What is it about Australia which makes the ute more successful? Is it just our history of locally producing them? Do you really even need one, or are the Europeans on to something?
I spent a week reacquainting myself with the freshly facelifted 2025 Peugeot Partner to find out.
The venerable VW Caddy was launched in 1979 and after five generations and more than four decades of service, it remains one of the world’s most popular range of small vans.
In Australia’s light-commercial vehicle market, the Caddy’s work-focused Cargo model competes in the small van (under 2.5-tonne GVM) segment against the Renault Kangoo and Peugeot Partner.
The VW range offers Cargo (SWB), Cargo Maxi (LWB) and Crewvan (LWB) models with a unique choice of petrol/diesel engines and manual/auto transmissions.
We recently revisited this German workhorse to find out why it remains such a strong seller in Australia from a business perspective.
It might not be the most modern looking or feeling small van, but amongst its competitors, the Partner stands out for its relative value and load-lugging capabilities.
It’s somewhat fun to drive but now feels a bit plain on the inside, and could benefit from a few extra options and features to make it more comfortable and maybe even a little more customisable.
Still, I think the Peugeot Partner will fit the needs of many primarily city-based small businesses or tradies who want to work out of a compact and easy-to-drive van instead of an unwieldy and often overkill dual-cab ute.
It’s not hard to see why the Caddy Cargo maintains its enduring favouritism in the small van class. It has outstanding workhorse capabilities, unmatched five-star safety and drivetrain choice, combined with a spirited car-like driving experience, be it unladen or with a heavy payload. It’s not perfect, but it's also hard to fault in a workhorse role.
The Partner’s recent update brings with it a new, more contemporary face, with the ‘claw’ style light fittings clasping a body-coloured panel in place of the usual grille fitting. It also updates all the badgework to match the French brand’s passenger car range.
Thanks to these upgrades, as well as the fetching colour and Premium body-matching highlights, it looks pretty schmick at a distance, but up close you can start to tell the Partner’s relative age.
It simply doesn’t look as contemporary or coherent in its design as the much newer ground-up fifth-generation Caddy or third-generation Renault Kangoo with which it competes.
A big part of this is due to the Partner being based on a much older platform which is shared across a lot of Stellantis brands. It started life as the third-generation Citroen Berlingo in 2018, and needs to warp its look overseas to fit the Fiat Doblo, Toyota Proace and Vauxhall Combo (although the Partner is the only version sold in Australia).
As a result, up close you can see its somewhat pieced together brand identity bits and boxy, upright bodywork.
There are some odd touches, like the plastic bumper at the front not matching the gloss black highlights or body coloured bumper at the rear, and the contemporary badgework finished in a matt grey adds yet another texture and colour to the mix.
The theme continues inside, with a huge plastic dash piece jutting into the cabin space. Here, the bits from Peugeot’s passenger car range have been integrated, including the cool 'squircle' steering wheel, digital dash elements and the multimedia screen.
In the centre, the electric shifter part from cars like the current 2008 small SUV has been embedded in the sea of plastic.
It technically matches the brand identity, but it doesn't stop the Partner’s interior from feeling a bit cobbled together, rather than the more unified corporate identity which is so well executed in the VW Caddy, which is almost hard to tell apart from a Golf.
The software is another area the Partner could use some work. It’s fairly simple and straightforward to use, but the layout isn’t very customizable, both for the multimedia suite and digital dash.
Again, the Caddy runs rings around Peugeot in this department, with its more impressively-featured and nicer-looking software it shares with other VW Group passenger cars.
There are also little areas which feel like they’re behind the pace for a top-spec variant. The steering wheel is hard plastic without even the option for a softer wrap, for example, and the Caddy offers an alternate optional synthetic leather seat trim for an operator willing to dish out a little extra cash.
Our test vehicle rides on a 2755mm wheelbase with 4500mm overall length, yet its 11.4-metre turning circle is slightly larger than a Toyota HiAce mid-sized van, which highlights the restrictions in steering lock shared by front-wheel-drive vehicles like the Caddy and its French rivals.
Underneath you’ll find robust MacPherson strut front suspension, a coil-spring beam rear axle with Panhard rod, four-wheel disc brakes and electric power-assisted steering.
It comes well armoured for work duties with unpainted dark grey plastic used in areas where bumps, scrapes and wear usually occur like the front/rear bumpers (including the rear pillars from top to bottom), door-handles and door mirror-shells. The bright silver alloy-look plastic wheel-covers can also be easily replaced if damaged by kerbs to keep this van looking sharp on the job.
Its purposeful external appearance is matched by a neat and practical cabin design with wipe-clean rubber flooring and fabric-trimmed bucket seats for driver and passenger. Hard surfaces abound in contrasting shades of grey with splashes of satin chrome.
The minimalist dash design is achieved by corralling most functions into the comparatively small (by today's standards) central touchscreen including often-used climate control, engine auto start-stop etc., which can be fiddly and distracting when driving. Thankfully, at least physical dials for audio volume and tuning remain.
So design-wise the Partner might barely hit the brief when it comes to matching it up with Peugeot passenger car design, but one area where it manages to shine is in-cabin storage.
There’s lots on offer, massive bottle holders and pockets in the doors, storage areas galore in the big plastic dash, with trays in the centre and passenger side, as well as behind the multimedia screen and under the shifter.
There are a set of non-variable bottle holders cut out of the top of the dash, as well as hidden storage compartments under both front passenger seats.
I should mention at this point the Partner has a three-across front bench, although actually putting three people in there will be quite the squeeze, especially given the centre of the dash juts quite far into the cabin area, leaving the centre occupant with nowhere to put their knees.
Maybe it will suit a child in a pinch if you plan to have this as a small business vehicle which may need to be dual-purpose from time to time.
There’s also a fold-down rotating table thing in the backrest of the centre position, designed to be used with a laptop. Another feature of the Partner’s dash is physical toggles and buttons for the climate controls, which are increasingly rare in favour of touch-based menus.
In terms of load area dimensions, the Partner LWB offers 3.9 cubic metres (excluding the bulkhead) and dimensions come in at 2167mm long, 1527mm wide (1229 between the arches) and 1243mm tall. This should accommodate two Euro-sized palettes.
Loading and securing should also be relatively breezy thanks to sliding doors on both sides, a barn door rear which hinges out of the way for forklift loading, and no less than 10 tie down rings.
It also scores decent LED lighting in the roof, so you can see what you’re doing in a poorly lit warehouse, or when using the load area at night.
As for capacities, the Partner LWB has a payload of 898kg. It claims a 950kg braked towing capacity (not much more than the unbraked of 740kg) although in reality 740 seems to be closer to the limit thanks to the 74kg towball download rating.
How does this compare to the Caddy? I was surprised to find the Caddy 5 in equivalent LWB form has a smaller load area (3.7 cubic metres) and a significantly lower payload of 695kg.
However, it can tow slightly more (up to a claimed 1500kg - however has a 75kg max towball download). Additionally, the Partner isn’t able to be fitted with a tailgate to replace the barn doors (an option which some buyers may prefer on the Caddy).
A full size spare wheel is present on all variants to keep you on the road.
The Caddy’s 1508kg tare weight and 2250kg GVM results in a 742kg payload rating, of which up to 100kg can be legally carried on the roof where external anchorage points are provided for roof racks or rails.
It’s also rated to tow up to 1500kg of braked trailer, although its relatively low 75kg tow-ball download (TBD) limit could present a challenge, given that TBD is typically about 10 per cent of trailer weight. So, a 150kg TBD rating would be better.
Volkswagen also does not publish a GCM (Gross Combination Mass) rating, so we don’t know how much it can legally carry and tow at the same time.
The cargo bay, which offers up to 3.1 cubic metres of load volume, is accessed through a kerbside sliding door or asymmetric rear barn-doors.
Its 1797mm length and 1614mm width with 1230mm between the rear wheel-housings provides good versatility, given it can carry an 1165mm-square Aussie pallet or 1000 x 1200mm Euro 3 pallet, two 800mm x 1200mm Euro pallets, or two 720 x 830mm bread-roll containers.
However, with the sliding side-door’s 695mm opening, all of these would need to be loaded through the rear barn-doors which offer 180-degree opening for easy forklift or loading dock access. The load floor is protected by a thick moulded-rubber liner and there are six load-anchorage points.
The cargo bay walls and doors are lined to mid-height and there are two bright LED roof lights and a handy 12-volt socket.
Driver and passenger have ample cabin storage with large-bottle holders and bins in each front door, a handy pull-out compartment to the right of the steering column, numerous bins embedded in the dash-pad, full-width overhead shelf, a large glovebox and a centre console with dual small-bottle/cup holders and numerous storage nooks.
Given the uniquely European nature of a van like this, it makes sense the remaining options offered to us are only from French and German makers.
In fact, this Peugeot Partner is one of just three left for you to choose from. Starting from $39,990, before on-roads (for a Pro SWB), the Partner goes into battle against its Gallic nemesis, the Renault Kangoo, and the defending small van champion in the form of VW’s popular fifth-generation Caddy.
Unlike its rivals, though, the Partner range is automatic only and exclusively powered by a three-cylinder, turbo-petrol engine (if you exclude the electric ePartner).
This immediately gives it a leg up, as in its most affordable form, it already undercuts the base manual Caddy (TSI220 SWB - $40,990) and most affordable automatic Kangoo (SWB auto - $41,990) although the Renault holds onto the most affordable price-tag in the segment if you’re happy shifting yourself, at $38,990 for its SWB manual.
The specific version we’re looking at for this review is the Premium LWB, which wears a price-tag of $45,990 and adds an additional 350mm to its length over the SWB.
Standard kit on Premium versions includes items otherwise missing on the Pro, like 16-inch alloy wheels instead of steel wheels, LED headlights instead of halogen, push-start ignition instead of turn-key, dual-zone climate instead of single-zone as well as body-coloured highlights, rails and door handles in place of plain plastic fittings.
Standard items across the range include a 10-inch central touchscreen with wireless Apple CarPlay and Android Auto, a digital instrument cluster, cloth seat trim, a 180-degree reversing camera, a digital rear vision mirror to make up for the standard windowless barn doors, a glaze-finish bulkhead to separate the cabin and load area, as well as an array of active safety items we’ll explore later.
The fetching blue scheme our car was painted in comes at an additional $690, and from there you can modify further with an array of factory options.
Key among them are a choice of windows for each sliding door ($486 each) or the barn door ($503), a metal cargo barrier to protect the bulkhead ($1146), an LED cargo light kit ($350), roof racks ($536) or a more comprehensive roof kit ($2610).
Additionally, long-wheelbase versions can be equipped with a cargo bay floor kit ($894), wall protection kit ($960) or the rubber floor mat which our van had ($600).
A complete towing set-up will set you back $1045 for the towbar and $510 for the wiring harness.
From a base of nearly $50K then, you can easily add a few thousand to the price once you start ticking boxes, but it is important to note not every commercial van, even ones a size up, offer this level of factory customisation.
This gives the Partner deeper (and warranty-covered) customisation for various trade purposes straight from the factory.
For what it’s worth, I matched our test car in the configurator and ended up with a final price of $52,429 with drive-away pricing set to Sydney.
Out of curiosity, I also priced up a VW Caddy Cargo LWB petrol auto with as close as I could get to the same equipment as this Partner Premium, and was surprised to find I had to tick a lot more option boxes to get LED headlights, alloy wheels (although the Caddy alloys are larger at 17-inches), premium paint, colour matching body panels, keyless entry with push-start and a rubber floor mat.
The total price for the spec-matching Caddy came in at $57,952 drive-away in Sydney.
Our test vehicle in standard Candy White is the Cargo SWB, which at entry-level is available with a 1.5-litre turbo petrol engine with six-speed manual or seven-speed auto. Or you can step-up to a 2.0-litre turbo-diesel with either a six-speed manual or (like our example) a seven-speed auto for a price of $45,990 plus on-road costs.
That’s higher than its two small van competitors, given the Renault Kangoo SWB petrol auto lists at $42,990 and Peugeot’s Partner Pro Short petrol auto is $39,990, but the Cargo is unique in offering five-star safety and its drivetrain choices.
The work-focused standard equipment list includes 16-inch steel wheels with plastic covers, 205/60R16 tyres and a full-size spare. There’s also an electronic handbrake, separate cargo bay locking system, a reversing camera, rear parking sensors, heated door mirrors, daytime running lights, two USB-C ports and two 12-volt sockets.
A moulded composite bulkhead with window separates the cabin from the cargo bay. The driver also gets a leather-trimmed flat-bottom steering wheel with multi-function controls, plus adjustable lumbar support for both driver and passenger seats.
The four-speaker multimedia system is controlled by an 8.25-inch colour touchscreen with Apple CarPlay, Android Auto and MirrorLink connectivity and FM radio, but no DAB or (sorry, talkback fans) AM band.
Volkswagen also offers numerous paint colour options and four option packs, plus there’s a genuine accessories range containing useful workhorse items like all-weather floor mats, roof racks, cargo barriers, dashcams and more.
There is just one combustion engine option in the Partner range, a three-cylinder 1.2-litre turbocharged petrol unit producing 96kW/230Nm which drives the front wheels via an eight-speed automatic transmission.
The only alternative to this is the E-Partner which sports a 100kW/260Nm electric motor instead.
The three-cylinder petrol is a perky unit sourced from Peugeot’s passenger car line-up, although the Partner range doesn’t quite offer the VW Caddy’s breadth of options; the choice of a 1.5-litre four-cylinder petrol or a 2.0-litre diesel in two states of tune.
Our test vehicle’s premium 2.0-litre four-cylinder turbo-diesel engine, dubbed TDI320, meets Euro6 emission standards using AdBlue, and produces 90kW at 4250rpm and 320Nm between 1500-2500rpm.
The seven-speed dual-clutch automatic offers three drive modes comprising (default) Drive, Sport or sequential manual-shifting using steering wheel-mounted paddles. There’s also an electronically-controlled automatic locking diff.
One of the key downsides of the Peugeot’s Euro-compliant turbo-petrol engine is it requires mid-shelf 95RON fuel, which could be a blow to those who want to drill down on running costs.
Claimed fuel consumption on the official combined (urban/extra-urban) cycle is decent, at 6.3L/100km. Ours spent the week mainly urban commuting and landed closer to the official urban number of 7.3L/100km with a total of 7.2L/100km over a few hundred kilometres.
The 60-litre fuel tank should allow for roughly 950km of driving range at the official consumption. More like 830km using our test figure.
The official combined average fuel consumption is a hybrid-like 4.9L/100km and the dash display was showing 5.6L after our 355km test, of which about one third of that distance was hauling a near-maximum payload.
That wasn’t far south of our own fuel-sipping figure of 6.5L/100km, based on actual tripmeter and fuel bowser readings. Therefore, you could expect an excellent real-world driving range of up to 770km from its 50-litre tank.
One thing which I always like about these little European vans for trades is they’re usually very humane and easy to drive compared to a dual-cab or a van in a larger market segment.
They tend to offer closer to the feel of a passenger car, with some of the little luxuries which are missing in big hollow diesel units like some form of refinement and less noise.
The Partner is no different, and shone in some ways I did not expect.
The brand has done a good job of making it feel like a Peugeot passenger car from a touch-point perspective with the dash elements and the small chuckable steering wheel.
It also has a swift steering ratio, making even this LWB version feel nimble and agile for darting around corners and down tight laneways just as I’m sure its French creators envisaged.
The peppy three-cylinder engine helps the hatch-like feel. It offers a punchy turbo surge and a satisfyingly gruff soundtrack, which makes this little commercial offering quite fun to drive.
The ride is also remarkably smooth for a commercial vehicle, even completely unladen. Car-like suspension handles the bumps and potholes of the city environment well, which could make this a good choice for delivery drivers who will spend a lot of time in urban environments, and maybe are less concerned about getting so close to the GCM rating.
However, it’s not quite as polished as the Caddy, which won me over big time when the fifth generation version arrived in 2022.
The Peugeot can suffer from significant bouts of turbo lag, and its eight-speed transmission can be occasionally jerky from a stand-still, making for the odd awkward moment at T-junctions and roundabouts where this van takes a second to get going again.
Additionally, some of the fun, refined feeling wears away over time as you constantly come into contact with the hard plastic trims of the interior, and the scratchy urethane steering wheel.
This can get a bit jarring over a full day of driving. It’s for this reason VW puts a leather-bound steering wheel in even basic versions of the Caddy these days.
The software also leaves a lot to be desired, with minimal customisation and laggy interfaces.
Sure, the reality is you’ll spend most of your time working with Apple CarPlay or Android Auto which worked perfectly in my time with the car, but it would be nice to have more customisation for the dash and a few nicer menus for the multimedia screen.
All in all, then, it’s a nice little van to drive, and is excellent at urban duties, but it has a slightly industrial character which will eventually catch up with you after a long day behind the wheel.
The Caddy is better in pretty much every way behind the wheel, but then it also costs over $5000 more in equivalent spec and can't carry as much stuff.
Its compact external dimensions are deceptive, as the cabin has ample headroom and it’s not hard for even tallish drivers (I’m 186cm) to find a comfortable position, even though the close-fitting bulkhead restricts backrest recline adjustment and the base cushion rake is fixed.
Small vans are the closest you’ll get to a car-like driving experience in light commercials and, given the Cargo’s unique turbo-diesel powertrain, it has unmatched torque output that provides energetic performance.
The shift calibrations of its seven-speed dual-clutch automatic ensure vigorous response in city and suburban driving, given that for most of the time they keep the engine operating between 1500-2500rpm, where its 320Nm of torque is served at full strength.
Combined with nicely weighted steering and four-coil suspension that provides an ideal balance of responsive handling and supple bump absorption, it’s an enjoyable and engaging vehicle to drive. The Sport drive mode and sequential manual-shifting options raise the fun level.
The gearing also ensures low-stressed highway driving with only 1600rpm required to maintain 110km/h, at which speeds the solid bulkhead minimises cargo bay noise that mostly emanates from the rear tyres. However, tyre noise can still be intrusive on certain grades of coarse bitumen.
To test its payload rating, we forklifted 650kg into the cargo bay through the rear barn-doors, which with driver equalled a total payload just shy of its 742kg payload limit. The rear suspension compressed almost 60mm under this weight, with long jounce rubbers positioned inside the rear coil springs providing additional load support and, in effect, a second stage of springing.
The Caddy took this heavy load haul in its stride on city and suburban roads, gliding over bumps without a hint of bottoming-out. The payload’s effect on engine, steering and braking performance was minimal and its handling composure was maintained regardless of speed or road conditions.
It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, and although engine braking on the way down required some assistance from the quartet of disc brakes to keep speeds in check, they handled this task with ease.
Our only criticism of the driving experience is that, given the substantial blind-spot over the driver’s left shoulder caused by the cargo bay’s solid walls, a Cargo buyer must pay extra to get blind-spot monitoring and rear cross-traffic alert as part of an options pack. We reckon these active features are crucial to safe van operation (any solid-walled van that is) and should be standard.
The Partner is covered by a par-for-the-course five year and 200,000km warranty which applies to the rest of its light commercial range, paired with five years of roadside assistance.
The Partner requires servicing once every 12 months or 15,000km.
When it comes to pricing, you can package the car up with either a two- or four-year service plan (priced at $400 or $1000, respectively) which Peugeot claims can save you up to $437 compared to a-la-carte servicing.
The Caddy comes with a five-year/unlimited-kilometre warranty and 12 months roadside assist.
Scheduled servicing is every 15,000km or 12 months, whichever occurs first.
An optional five-year pre-paid service package is available for the price of a three-year package ($2000), so that’s two free services and savings of up to $1439 compared to pay-as-you-go capped-price servicing. In other words, an average annual servicing cost of $400.