What's the difference?
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.
If you’re looking for a sedan version of the RS 6 Avant, then you’ve come to the right place – sort of. See there is no RS 6 Sedan, but the RS 7 Sportback is the next best thing – you may even find it an even better thing because not only does it share RS 6 Avant’s outrageous engine and high-performance hardware, it’s also a sedan …but with a hatchback.
And if that kind of thing makes you happy, sit down – because the new generation RS 7 Sportback has just landed.
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 new-generation RS 7 Sportback heralds the further evolution of this large majestic beast, with more features, a beautifully finished cabin and with more grunt with the looks to match. You’d be hard-pressed to find a better combination of power, dynamics and comfort in the Audi range – apart from in the RS 6 Avant of course.
Commercial vans are typically not instruments of design, but rather a study in functionality. But credit to the Volkswagen designers because it clearly looks like a Volkswagen from the outside, despite its Ford lineage. While there are obviously some similarities between the Transporter and Transit Custom inside, the front-end design definitely has a visual connection to the previous generation models.
But, of course, functionality is important and by using the Transit Custom underpinnings, Volkswagen has been able to grow the Transporter. It is 150mm longer and the standard wheelbase has been stretched by 100mm, compared to the six-generation, which allows for even more cargo space.
The cabin is well laid out, with a new 12-inch digital instrument display and a 13-inch multimedia touchscreen taking prominence on the dashboard. The multimedia system includes built-in navigation plus wireless Apple CarPlay and Android Auto, as well as digital radio.
The big news is the RS 7 Sportback now comes with five seats. The previous generation car had just two seats in the second row. I'll talk more on practicality below but for now let's examine the new styling.
This RS 7 Sportback has new broad, black mesh grille, flanked by gigantic side air intakes, narrow headlights, and a thin upper air inlet which is a hat tip to early racing Audis.
While that new angrier, more angular and menacing face is a showstopper, everything about the new RS 7 Sportback seems to be accentuated further.
Look at the wheels. The previous generation came with 21-inch rims, now the new normal for the RS 7 are 22-inches – they're huge. Those wheel guards also flare out 20mm more than a regular A7's and the rear haunches have bulked up massively.
Come to the back of the car and the diffuser and bumper have also been beefed up. Nobody sitting behind you in traffic is going to think this is just a regular A7.
Don't expect the RS 7 Sportback's insides to be just as hardcore as its exterior. The cabin is almost identical to a regular A7's. It's a stunning cockpit dominated by a dash which protrudes back towards the passengers and houses the media screen. Anther display for climate is set into the big centre console which divides the driver and co-pilot into almost cocooned cells.
The cabin isn't without its RS touches though – there's the sports seats with honeycomb stitching, fully digital instrument cluster with RS specific meters, the RS steering wheel, the Nappa leather on the dashboard and the doors, the aluminium inlays. The level of fit and finish is up there with the best that I've seen on any production car.
The RS 7 Avant is 5009mm long, 1424mm tall and 1950mm across for a wide planted stance.
This is the really important element for any good commercial van, both the practicality of the cabin (as drivers spend long hours behind the wheel) and the cargo capacity in the back (for the obvious reasons).
Up front there’s a wireless charging pad and seven USB ports spread around the cabin. There are plenty of small item storage spots, and some not so small items, with a large shelf on top of the dashboard and multiple in-door shelves.
Of course, it’s out the back that’s really important and, as mentioned earlier, there is more space thanks to the larger overall dimensions.
Both SWB and LWB vans come with a plastic floor cover as standard, plus there are load rated tied tie down points, a 12V charging port in the D-pillar and LED lights in the roof.
Thanks to the extra length, the SWB has a 2.6m load length and 5.8 cubic metres of cargo space, while the LWB has 3.0m in length and 6.8 cubic metres. There’s also a steel fixed partition with window, window grille and load through hatch to stretch the usable space even more.
The total payload for the Transporter varies depending on the powertrain. The TDI 2WD can take up to 1062kg (SWB) and 1016kg (LWB), while TDI AWD can manage 963kg (SWB) and 917kg (LWB). The electric Transporter has a significantly lower payload, rated at 806kg (SWB) and 760kg (LWB).
Towing capacity also changes depending on the powertrain, the TDI 2WD can manage 2000kg, TDI AWD up to 2800kg and the electric 2300kg.
The previous RS 7 Sportback was a four-seater, now it has five seats. That's right, a middle seat has been added to the second row, but, as you'd expect, it's not the best place be in the RS 7 Sportback, straddling the large driveshaft and ducking under the low roof-line.
That fastback profile does mean headroom in the second row is nowhere near as good as the RS 6 Avant's, but legroom is the same and, at 191cm tall, I can just fit behind my driving position with about 10mm to spare.
Up front it's not as spacious as you might think. That stepped dash protrudes into the passenger's space, the door pockets are thin and the centre console storage under the armrest is small.
Sportbacks are more practical sedans thanks the large opening offered by the hatch. The boot's 535-litre cargo capacity is great and only about 30 litres less than what you have in the RS 6 Avant.
For phones there's a wireless charger and two USB ports in the centre console storage box, while back seat passengers have two USB ports and a 12V outlets. There's also directional air vents and dual-zone climate control in the rear, too.
In addition to the multiple powertrains, there’s also a variety of body styles to choose from - van in both standard and long wheelbase, Crewvan in both lengths and the long wheelbase Dual Cab.
The Transporter TDI (diesel) SWB van begins the range at $58,590 (all prices exclude on-road costs), while the same size with electric power is priced from $83,590; so the cost of going electric is a big one.
The diesel van LWB is priced from $60,590, and the electric van LWB $85,590, so the extra room is a much cheaper upgrade.
Standard equipment on the Transporter van includes 16-inch steel wheels, LED headlights and tail-lights, keyless ignition, climate control, cloth-trimmed seats, heated front seats and a four-speaker sound system.
Customisation is a key part of the commercial vehicle market, so Volkswagen has done its best to ensure aftermarket suppliers can use the Transporter as a platform to shape it into whatever customers need - delivery van, camper, etc.
For business operators Volkswagen Australia has done a deal with a company called Sortimo. The so-called Sortimo ‘1-Click’ is a new system, exclusive to Volkswagen, that allows owners to add interval shelving options to any VW commercial van direct from the dealer. This can be added at the time of purchase so it can be included in the financing for the car.
The Audi RS 7 Sportback lists for $224,000, which is exactly $8K more than the RS 6 Avant.
Coming standard are the enormous 22-inch alloy wheels, the matrix LED headlights with laser lights, metallic paint, a panoramic glass sunroof (which is new to the model), privacy glass, head-up display, soft-close doors and red brake calipers.
Inside there's the Bang and Olufsen 16-speaker sound system (that new, too), sat nav, the 12.3-inch virtual instrument cluster, wireless Apple CarPlay (new, as well), wireless charging, full leather upholstery with RS sport front seats that are heated and now come with ventilation as standard, and four-zone climate control.
I've left off all the standard RS mechanical equipment, but I'll cover that in the driving section below.
Is it good value? Well the Mercedes-AMG CLS 53 S is $186,435 but it has way less grunt, the Alpina B5 which I've also road-tested lists for $210,000 and there's the Porsche Panamera 4 Sport Turismo for $236,300.
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.
The RS 7 may look like a large, well-mannered business class car, but think of it as a thug in a suit because this thing is a monster with a 441kW/800Nm twin-turbo petrol 4.0-litre V8.
That's almost 600 horsepower and the supercar acceleration that goes with it is brutal: we're talking 0-100km/h coming in 3.6 seconds. That also matches the RS 6 Avant and it's a tenth of a second faster than the Audi R8 V10 RWD supercar, (and also the previous-gen RS 7 Sportback Performance) and this is a large, four-door, five-seater.
Compared to the previous generation RS 7 Sportback Performance the power is down by 4kW, but torque is up by a whopping 100Nm. Give me torque over power any day.
Shifting gears is an eight-speed automatic transmission, sending the drive to all four wheels.
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.
This is a large, all-wheel drive car with a 600 horsepower V8, but it also has a mild hybrid system in this new generation, which will switch the engine off at let the car coast down hills or at speeds under 22km/h.
Audi says this can save up to 0.8L/100km in real-life driving. That's great news, but consumption is still fairly high with Audi saying that after a combination of open and urban roads the RS 7 Sportback will have used 11.6L/100km.
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.
I've never met an RS model that hasn't been great to drive – these cars are way more than just tough body kits and big wheels. The engineering which separates the RS 7 Sportback from the A7 makes them more distant cousins than siblings.
As I mentioned before the RS 7 Sportback and RS 6 share more than the same twin-turbo V8, there are also the giant brakes in form of 420mm discs at the front with 10 piston calipers and 370mm discs at the rear.
The optional carbon ceramic brakes are the largest ever to be fitted to a production vehicle at 440mm at the front and 370mm at the rear, saving 34kg in mass over the steel brakes.
Now standard for the first time is Audi's Dynamic Package, which adds dynamic steering (a variable ratio) paired with all-wheel steering, a sport differential, and a 280km/h top speed.
Coming standard is adaptive air suspension and for $2850 you can option the Dynamic Ride Control suspension, which is a hydraulically activated adaptive damper system
At the Australian launch, Audi supplied two RS 7 Sportbacks: one with the air suspension and the other with not only the Dynamic Ride Control system, but also the RS Dynamic Package Plus which adds the ceramic brakes and increases the top speed to 305km/h – this was the car I started off in.
I'm going to say right away that you don't need ceramic brakes for regular road use. Sure it means you can tell people that you have the biggest brakes in the world and they save you almost 35 kilos in weight, and, yes, they're resistant to fading, but they're expensive to replace and the steel ones are incredibly good.
I also feel the Dynamic Ride Control sports suspension isn't necessary in a car like the RS 7 Sportback. This is a Grand Tourer designed to eat up hundreds of miles at lightspeed in comfort.
So, while I found the first RS 7 Sportback with the big brakes and sports suspension sharper and firmer than the standard car, it didn't seem to fit with this vehicle's intent.
The regular RS 7 Sportback still accelerated with the same brutal force and roared at the scenery flashing past. It still handled through the tight corners superbly with excellent turn in, mind-boggling traction and grip, and excellent body control, but all in far more comfort.
This is the point – we covered hundreds of miles at the Australian launch of the RS 7 Sportback in a range of RS models, and sports suspension can go from great to gruelling on Aussie roads with their coarse-chip bitumen and potholes. The RS 7 Sportback, with its air suspension, not only made driving far more comfortable, but easier, too.
This is an area previously overlooked, not just by carmakers but even the safety authorities. Given vans like the Transporter are on the road more than your average family car, it’s important to keep everyone safe.
There is no ANCAP score for the new Transporter yet, and the safety authority hasn’t crash tested the latest Ford Transit Custom, either. So there is clearly still some work to do before commercial vans get the same level of attention as passenger cars.
In terms of equipment, the Transporter comes with a range of active safety items including 'Front Assist' (with cross traffic alert and adaptive cruise control) and a rear view camera. There are also front and curtain airbags to protect the occupants.
ANCAP tested the A7 in 2018 and gave it the maximum five-star ANCAP rating, however, this rating does not apply to the RS 7 Sportback high performance model.
That said, the RS 7 Sportback is fortified with nearly every piece of advanced safety tech there is in Audi's cupboard. There's AEB which can detect and brake for cyclists and pedestrians at speeds between 5-85km/h and vehicles up to 250km/h; there's rear cross traffic alert and intersection crossing assistance with braking; lane departure warning and corrective steering to keep you in your lane, and blind spot warning.
Not a fan of parking, the RS 7 Sportback can do it by itself, or there's a 360-degree camera that'll help you do it yourself. There's an exit warning system, which will warn you if a vehicle is approaching as you go to get out, too, and if the RS 7 Sportback detects that it will be hit from behind, it will prepare the cabin by tensions the seatbelts and closing the windows, including the sunroof.
Along with all that there are Audi's new Matrix LED headlights with laser lights, rain sensing wipers and adaptive cruise control.
For child seats you'll find three top tether points and two ISOFIX mounts across the second row.
There's no spare wheel – instead, there's a tyre repair kit.
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.
The RS 7 Sportback is covered by Audi's three-year, unlimited kilometre warranty which not only falls behind in duration compared to mainstream brands but also its direct rival Mercedes-Benz which now has five-year, unlimited kilometre coverage.
Service intervals are every 12 months or 15,000km with a three-year plan costing $2380 and a five-year plan for $3910.