Volkswagen Caddy vs Lexus Lm350H

What's the difference?

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 Lexus LM is going to be a niche model. This was not designed to appeal to people that may have bought a Toyota Tarago back in the day, or even a Kia Carnival now.

It has a specific purpose for ferrying people around in absolute comfort and at that, it succeeds in a big way.

It’s just a bonus that it’s great to drive.

Welcome to the automotive equivalent of a business class airline suite.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

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.

Look, people movers are not considered the sexiest of automotive body styles, but that’s changing.

The Kia Carnival and Hyundai Staria are examples of good MPV design.

And the Lexus LM steps it up again. 

It is based on Toyota’s TNGA-K architecture that underpins a bunch of Toyota and Lexus models, including the Lexus RX, and it measures a whopping 5.1 metres long and has a three-metre wheelbase.

It shares its underpinnings with the latest generation Japanese-market Toyota Alphard, which is a cult hit in Australia among the grey import set.

The front-end design is bold, with the latest take on Lexus’ big ‘spindle grille’, pinched slimline headlights and a stubby nose. 

I am a big fan of this design. It is far more than a box on wheels and it has quite a bit of presence. 

The interior design up front is modern Lexus, with a few familiar Toyota touches, and while it’s not exactly minimal, it’s still visually appealing.

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.

While most of the fun happens in the second row of the Lexus LM, there is a lot to like in the front compartment.

The dash is dominated by a large touchscreen that houses Lexus’ latest multimedia setup. The logical menu and uncomplicated sub-menus ensure this is an easy system to navigate. Speaking of, the in-built sat-nav is one of the better systems I have experienced. 

Comfort isn’t just the domain of the second row - the driver’s seat is very supportive and comfortable, with power adjustment.

There’s plenty of glass including a smaller front quarter window that helps eliminate front blind spots, so forward visibility is exceptional. Rearward visibility is aided by the digital rear-view mirror that is designed to ensure privacy for second and third-row occupants. You don’t want the chauffeur spying on you while you’re sleeping, do you?

The other big tick for me is the driving position. Other people movers, namely the Hyundai Staria and Mercedes-Benz EQV, have very low window lines and it leaves you with a feeling of sitting on the car, rather than in it. I am sure it helps with extra light and it probably makes it easier for kids to see out of, but from a driving perspective, I find it a little disconcerting.

But the LM has flipped that. The front compartment is designed in such a way that it feels like a cockpit that you’re ensconced in. This helps the driver feel more connected with the car, and in the LM it feels like you’re sitting in the driver’s seat of a sporty sedan, not a five-metre bus. Very well done, Lexus.

And now to the main event - the second row.

Where to begin. Let’s start with space. Because there is so much of it. Unsurprisingly given the seating layout, there is an unending amount of head, leg, knee, bum, shoulder and whatever-else room. I can’t imagine anyone complaining about space back there.

Also, getting in and out is a breeze thanks to the sliding power doors on both sides. These can be opened from the front seat, and via several buttons in the rear.

Those captain’s seats are plush. Not quite Benz S-Class plush, but still.

They are adjustable six ways - power adjustable, of course - and they’re heated and ventilated. They recline almost flat, too, if you need a nap on the way to the country estate. And while you do that you can look up through the split sunroof, or close the shade a number of ways.

Is there a massage function? Of course there is a massage function. And it’s not bad. You can choose two settings - weak and firm.

Adding to the feeling of a business class airline seat, there is a fold-out table in the armrest, although it’s a smallish one. And there is dual-zone climate control in the rear.

There is a roof-mounted control panel for things like climate, sunshades and sunroof blinds, but much of this can also be controlled by the Apple iPhone-like devices clipped into both rear seats. These are closer to the seats, so it is easier to access than the roof.

Another function in the device is the Climate Concierge that features different modes - Dream, Relax, Focus, Energise. Depending on which one you choose, it alters the seat settings, massage, climate and lights to suit.

I love the massively wide side windows that are tinted (or privacy glass), too.

Other amenities include map pockets, knee and roof-mounted air vents and a 14.0-inch display screen that retracts from the roof and connects to an HDMI cable, allowing you to watch whatever you want.

The third row is not as appealing as the second. It is technically a three-person row, but the width and the fact that it has a sizeable gap in the centre suggests that this is best thought of as a six-seater van.

The seats are not as plush of course, so you might not want to spend too much time in that row unless you are a small child. But you do get USB-C ports, cupholders, air vents, lights, sunglasses holder, power side shades and grab handles.

Getting in and out of the third row can take a while. It’s all power adjustable, so you don’t have to lift anything heavy - but it takes a while for the second row seats to move forward and up.

With all seats in place the cargo space is limited. In fact, it’s just 110 litres.

That’s similar to what you get in a seven-seat SUV. But it did fit all our overnight luggage easily.

Drop the rear row and that expands to a maximum of 1191 litres in the 350h or 752 litres in the 500h.

All grades have a space-saver spare wheel.

From launch there will be two versions of the LM350h Sports Luxury on offer - front-wheel drive and all-wheel drive, priced from $160,888 and $165,888 before on-road costs respectively.

They both have seven seats across three rows and share the same four-cylinder hybrid powertrain, but an even more high-end version is on the horizon.

The LM500h will land in January 2024, priced from $220,888, and it adopts a newer more powerful hybrid powertrain. Something else that sets the LM500h apart is the seating layout - it is a four-seater. Behind the driver and front passenger compartment are two big captain’s chairs that recline flat if required. Decadent luxury. Or so the pictures suggest. We will have to wait until the New Year to sink into the sumptuous seats.

Given the positioning and interior layout, the LM will probably not appeal to people looking at a Kia Carnival, or who would have opted for the departed Toyota Tarago. It will, however, appeal to large families that aren’t short of a dollar, airport limo operators, and even as tourist transport.

Thankfully, there’s a substantial amount of standard gear fitted as standard in the LM.

The only difference in spec between the two 350h grades is the addition of all-wheel drive. Otherwise you’ll find keyless entry and start, front heated seats, automatic retractable side steps, power opening side doors, rear privacy glass, a pair of sunroofs, and semi-aniline or L-aniline upholstery.

Tech-wise, there is a digital rearview mirror, and a 14.0-inch touchscreen, a 12.3-inch digital instrument cluster, a head-up display, seven USB ports, a smartphone charger and a rear 14.0-inch multimedia display.

The 500h adds niceties like a separation partition with elevating and dimmable glass, that doubles as a 48.0-inch widescreen display to watch films and TV, or take conference calls with. It also gets two partition glove boxes, a pair of umbrella holders, two second-row phone chargers, a 23-speaker Mark Levinson 3D audio system and more.

In terms of rivals, there really aren’t many other luxury people movers on the market. Aside from the Mercedes-Benz V-Class and all-electric EQV, there are higher-grade versions of the Volkswagen Multivan, and the LDV Mifa 9 EV.

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.

There are two hybrid powertrains available. Coming next year, the LM500h combines a 2.4-litre turbocharged petrol engine and a hybrid setup, making for power and torque of 202kW and 460Nm respectively. It is all-wheel drive and is paired with a six-speed automatic transmission.

The LM350h comes with a 2.5-litre naturally aspirated petrol engine and a parallel hybrid system, offering up a total system output of 140kW and 239Nm. The 350h comes in front or all-wheel-drive guise and uses a continuously variable transmission (CVT).

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.

As you’d hope with an all-hybrid line-up, the LM excels when it comes to combined cycle fuel efficiency. The 350h FWD sips just 5.5 litres per 100 kilometres, while the AWD version is 5.6L/100km. The 500h is a little thirstier at 6.6L. 

Our drive was so brief we did not get to record an on-test fuel figure.

The theoretical range of the LM, considering the 60-litre fuel tank and 5.5L/100km (350h) and 6.6L/100km (500h) fuel consumption figures is about 1000km.

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.

As mentioned earlier, I spent much more time in the second row as a passenger than I did behind the wheel of the LM350h. But it was enough time to capture some initial high-level drive impressions.

But let’s start in the rear. The ride in the second row is comfortable - as you’d hope. Our trek from Melbourne’s inner north down to the Mornington Peninsula included a lot of freeway, which was smooth. The only thing that disturbed the peace was a chunky bridge join that caused a bit of a thump. But we were hardly disturbed. 

Back in the driver’s seat, there’s a lot to like about how the LM350h drives. First of all, it feels smaller on the road than its ample dimensions would otherwise suggest. It even feels relatively light on the road. 

After the LM, I drove a Mercedes-Benz EQE SUV that has a similar kerb weight (the Lexus is about 2.4 tonnes), and the LM felt lighter.  

The hybrid powertrain is responsive enough, offering decent acceleration from a standing start. The more potent 500h will of course be quicker.

The transition from electric to petrol propulsion is pretty smooth in Lexus (and Toyota) models these days, and the additional noise-deadening materials in the LM ensure it’s subtle.

The 2.5-litre petrol engine is really only noticeable when accelerating hard, and the CVT a slight drone, but it’s in no way unpleasant. 

Otherwise it’s a superbly refined and quiet cabin on all but the absolute worst road surfaces. Whisper quiet power windows adds to that feeling of luxurious refinement.

Given the brief time behind the wheel, we didn’t get to test the handling capability of the LM, so that might have to wait for a review in the New Year. 

The steering is heavily weighted and doesn’t feel overly responsive, but it’s perfectly suited to this sort of vehicle.

That supple ride we experienced in the rear was also evident behind the wheel.

This was especially impressive on a couple of pock-marked peninsular back roads. The ride is also much more compliant than the Mercedes-Benz EQV I tested early in 2023.

The LM is yet to be crash tested by ANCAP, and it is unclear if it will be given the fact that it’s a niche model. However, as with other current Lexus models, it has a long list of standard safety gear.

The safety suite, including intersection assist, and a pre-collision system with vehicle, pedestrian, bicyclist and daytime motorcyclist detection.

It also comes with emergency steering assist, full-speed radar cruise control, ‘Curve Speed Reduction’, ‘Lane Trace Assist’ with lane-departure alert, automatic high beam, ‘Road-Sign Assist’ (speed signs only), ‘Emergency Driver Stop System’, a blind-spot monitor and rear cross-traffic alert.

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.

When you buy a Lexus, you get a bit more than a car. The brand has a customer loyalty program - Lexus Encore - and depending on what model you buy, you are eligible for some pretty cool discounts, bonuses and experiences. 

There are three tiers, depending on your model. UX, NX, RX and ES fall under regular Encore, and electric models the RZ and UX300e sit beneath Electrified Benefits. But the LM, as well as the LS, LC and LX are under Encore Platinum - the top tier. 

That means access to the ‘On Demand’ program that allows access to another Lexus model for a few days or longer. So if you own an LC Convertible but need an RX for a few days to ferry people around, that’s all free. There’s valet parking service loans and more.

It also includes upgrades at Lexus partners. Our launch took us to Jackalope Hotel on the Mornington Peninsula, which is a Lexus partner, and you can get a bunch of extras here as a Lexus owner that other guests won’t get.

In terms of other ownership details, the LM is covered by a five-year, unlimited-kilometre warranty, and the servicing schedule is every 12 months or 15,000km.

Lexus is yet to announce the capped-price servicing details for LM, but it is expected to cover five years, and should be in the vicinity of approximately $700 per service.