What's the difference?
The small van segment (Under 2.5-tonne GVM) is one of the smallest in Australia’s light commercial vehicle market, as it currently caters for only three contenders, the Volkswagen Caddy Cargo, Peugeot Partner and Renault Kangoo.
Although total sales in this category are a fraction of those achieved in the mid-size (2.5-3.5-tonne GVM) van division, these compact commercials are ideal for buyers not requiring the big one-tonne payload ratings and cavernous load volumes of their larger siblings.
Petrol and diesel-powered models are typically equipped with small displacement engines offering excellent fuel efficiency, combined with cabin ergonomics and driving dynamics which are the most car-like of any LCV offering.
French manufacturer Renault released its third generation Kangoo range in Australia in 2024, comprising a mix of petrol and full-electric variants. We were recently handed the keys to one of the petrol models to see if it has what it takes to win costumers in this three-way fight.
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 latest petrol-powered Kangoo has the pricing, practicality and performance to win friends in Australia’s small commercial van class. If you can afford an option pack or two, like those fitted to our test vehicle, it's even better.
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.
Our test vehicle is less than 4.5 metres long (4488mm) and well under 2.0 metres in width (1859mm) and height (1830mm), making it ideal for those with either limited parking space and/or needing to access space-restricted areas in their working roles.
Its compact 2716 wheelbase results in an 11.3-metre turning circle. This is larger than you might expect, given it’s no tighter than Toyota’s shortest HiAce mid-sized van.
However, it’s also line-ball with its small van rivals, which highlights the restrictions in steering lock shared by front-wheel drive vehicles compared to rear-wheel drivers like the HiAce.
The Kangoo features MacPherson strut front suspension and its rear suspension uses torsion bar primary springing supplemented by a pair of secondary coil springs for carrying heavy loads. There’s also rack and pinion steering and a quartet of disc brakes.
Bodywork and wheels confirm its no-frills work focus, with unpainted dark grey plastic prominent on the hubcaps, front/rear bumpers and along the sides where bumps and scrapes usually occur.
It has tidy styling for a commercial van, including the sharp cabin design that combines a tasteful blend of grey and satin chrome hard surfaces with the practicality of wipe-clean fabric upholstery and vinyl floors.
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’s 1447kg kerb weight and 2010kg GVM results in a useful 563kg payload rating.
It’s also rated to tow up to 1500kg of braked trailer and with its 3510kg GCM (or how much it can legally carry and tow at the same time) it can carry its maximum payload while towing its maximum trailer weight for optimum versatility.
Cargo bay access is through asymmetric rear barn-doors which can be opened to 180 degrees for forklift and loading dock access, or sliding doors on each side with (according to our tape measure) 625mm openings. The walls and doors are lined to mid-height and there’s internal lighting.
The cargo bay’s load volume is a competitive 3.3 cubic metres and with more than 1.8 metres in length, almost 1.6 metres in width and more than 1.2 metres between the rear-wheel housings, it can easily swallow one standard Aussie pallet or two Euro pallets.
The load floor, which does not include a protective liner as standard equipment, offers a choice of six load-anchorage points.
The solid bulkhead doubles as a sturdy cargo barrier and insulates the cabin from cargo bay noise, most of which comes from the tyres emanating through the rear-wheel housings.
Given its compact dimensions, the cabin is surprisingly spacious and accommodating even for someone my height (186cm), thanks to front doors that open to a full 90 degrees, generous leg and elbow room plus a high roof relative to the seating position that adds to the airy feel.
Storage includes a large-bottle holder and bin in the base of each door, single glove box, full-width overhead shelf, large open tray in the centre of the dash-pad and (in standard form at least) a centre console with two cupholders and trays for small items.
However, given our test vehicle is equipped with the optional Business Pack, the standard console is replaced with a more elaborate version, which in addition to a pair of cupholders has a wireless phone-charging dock up front and a box with hinged lid at the back.
There’s also a sizeable clamshell-lid compartment set into the dash-pad ahead of the driver, which includes a smartphone holder on a stalk that can be easily moved to either side of the compartment depending on driver preference.
Our only criticism is the lid on the optional console box. Although it’s been thoughtfully angled downwards at the front to provide the driver with comfortable elbow support, there’s no mechanism on the hinge to hold it in the open position.
This makes it awkward to access the box, as the angled lid naturally wants to keep closing on your hand, so a detent in the hinge would be useful.
And, in a similar context, we’d also like to see hinge detents (or struts) to firmly hold the rear barn-doors open in their 180-degree positions, given their propensity to slam shut if hit by wind gusts during loading/unloading.
This can potentially injure the operator, so these devices should be standard issue, not only for Kangoos but all barn-door vans.
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 Kangoo petrol range is available in SWB (short wheelbase) with a choice of six-speed manual or seven-speed dual-clutch automatic, plus a LWB (long wheelbase) model available only with the auto.
Our test vehicle is the SWB auto, powered by the same 1.3-litre four-cylinder turbocharged engine shared by all petrol models, for a list price of $41,990.
That figure sits comfortably between petrol rivals in the small van class, including the Peugeot Partner Pro Short ($39,990) and Volkswagen Caddy Cargo TSI220 ($43,990).
Our example has been enhanced with genuine accessory carpet mats ($167) plus some desirable options including 'Highland Grey' metallic paint ($800) and the ‘Peace of Mind Pack’ ($1500) comprising blind-spot monitoring, front/rear/side parking sensors, driver attention alert, high-beam assist, navigation, overspeed prevention and traffic sign recognition.
It’s also equipped with the ‘Business Pack’ ($3000) which adds tyre pressure monitoring, hands-free key card, body-coloured external door handles, climate control, adaptive cruise control, centre console with armrest and storage, wireless smartphone charger, extra tinted rear barn-door glass, front fog lights, LED headlights and a leather-wrapped steering wheel.
This is in addition to its work-focused standard equipment list which includes 16-inch steel wheels and 205/65 R16 tyres with a full-size spare, plus auto-door lock when driving, rain-sensing wipers, a reversing camera and more.
The two-seater cabin, which is separated from the cargo bay by a solid bulkhead, is equipped with an electronic parking brake, two USB ports, two 12-volt sockets, a colour 4.2-inch driver’s info display and a multimedia system controlled by an 8.0-inch central touchscreen with wireless Apple CarPlay/Android Auto connectivity and smartphone dock.
In addition to its option packs, Renault also offers numerous single options including a 200kg GCM upgrade, different cargo bay sliding-door configurations, a smart digital rear view mirror and more.
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.
The Euro 6 emissions-compliant 1.3-litre turbocharged four-cylinder engine produces 96kW at 5000rpm and 240Nm at 1600rpm.
Its seven-speed dual-clutch automatic provides the option of sequential manual-shifting plus three drive modes comprising 'Normal', 'Eco' and 'Performance', which alter the shift calibrations to optimise engine efficiency in each setting. They are selected using a button on the dash.
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.
Renault claims average combined consumption of 6.4L/100km and the dash display was showing 7.8 when we stopped to refuel at the completion of our 254km test, of which about one third of that distance was hauling more than half a tonne of payload. We also had the annoying engine auto stop/start function switched off for the duration.
Our own figure, calculated from fuel bowser and tripmeter readings, was higher again at 8.6 which was still within the usual 2.0-3.0L/100km discrepancy between official and ‘real world’ figures.
So, based on our consumption number, you could expect a ‘real world’ driving range of around 630km from its 54-litre tank which should only be filled with premium petrol (min 95 RON).
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.
Apart from the huge and unavoidable solid-walled blind-spot over the driver’s left shoulder, the Kangoo feels more like a nippy small car than a commercial van.
The driver’s seat has no adjustments for lumbar support or base-cushion rake and the backrest angle is restricted by the bulkhead close behind it, but there’s still enough room even for tall people to find a comfortable driving position.
Its leather-rimmed wheel feels nice in your hands and the unladen ride quality is excellent, with nicely weighted and responsive steering feel, reassuringly strong braking and suspension settings that combine good handling response with supple bump absorption.
The turbocharged 1.3-litre four is a refined and willing performer, albeit with softer response below its peak torque band which is tapped at 1600rpm.
From there it happily spins its way to maximum power at 5000rpm, with the dual-clutch auto getting the best out of this engine in all drive modes, when either unladen or hauling a heavy load.
Its diminutive size and agility are well suited to zipping through heavy city traffic, squeezing into tight loading zones or negotiating narrow and crowded city lanes for delivery work.
Manual sequential-shifting allows more direct control if preferred when hauling heavy loads, or for those simply wanting a more engaging drive experience (particularly in Performance mode).
It's impressively quiet up to 80km/h in city and suburban use, but at highway speeds tyre noise becomes more intrusive (particularly on coarse bitumen surfaces) and some wind noise is evident.
The engine requires only 2000rpm to maintain 110km/h cruising speeds and the (optional) adaptive cruise control is resolute in maintaining its speed settings, even on long and steep descents.
To test its GVM rating, we forklifted 415kg into the cargo bay which with driver equalled a payload of just over half a tonne, or about 50kg under its legal limit.
The rear suspension compressed 55mm, which engaged the long cone-shaped jounce rubbers positioned inside the rear coil springs to provide a second stage of load support.
The Kangoo coped commendably with this payload, floating smoothly over bumps and with minimal effect on handling, braking and engine performance.
It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, quickly self-shifting down to fourth gear to easily reach the summit.
Engine-braking on the way down was not as robust, as you’d expect from such a small engine with more than half a tonne on its back, but still within expectations for small vans.
Our only gripes are the absence of a full-width driver’s left footrest and that the thick panel separating the bulkhead windows almost completely blocks the central mirror’s view through the LHS barn-door. You can option a smart digital mirror with rear-facing camera to resolve this issue, but that’s another $800.
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.
The Kangoo petrol is backed by a five year/200,000km warranty, whichever occurs first. There's also complimentary roadside assist for up to four years/120,000km, with annual renewals available after that.
Scheduled servicing is every 12 months/30,000km with capped-pricing for the first five scheduled services totalling $2385, or an average of $477 per year.
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.