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.
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 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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.