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.
The world is full of shock brand announcements.
Remember the time Coke suddenly changed its cola recipe? Or when Apple decided to take on Nokia with iPhone? Nobody saw those coming.
We all know how the latter turned out and even the former eventually became a marketing masterstroke.
Now here's another super-surprise – a German electric luxury SUV that’s actually comparatively inexpensive. And not stingily equipped. Yep, we’re talking about the iX1.
Based on the really rather impressive third-generation X1, it decisively undercuts similarly-specified rivals from Mercedes-Benz (EQA, EQB) and Genesis (GV60).
But is the Bavarian EV SUV worth paying that little bit extra for against (only very slightly) cheaper alternatives like the Hyundai Ioniq 5, Kia EV6, Tesla Model Y, Polestar 2 and Volvo XC40 Recharge?
Let’s see.
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.
BMW is a true EV pioneer, as the 2014 i3 and subsequent models prove. There’s never been one that we didn’t like. The only problem was that all were expensive. And at times, prohibitively so.
Astoundingly, the iX1 breaks that cycle, comparatively speaking, while impressing us with its design, quality, packaging, dynamics and equipment levels.
As it stands, the xDrive30 is one of the most convincing and best-value medium-sized luxury SUV EVs on the market right now.
Who’d have thought it from a BMW?
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.
Arguably the prettiest new BMW SUV you can buy today, the well-proportioned iX1 is nearly impossible to spot over its almost-identical ICE (U11) X1 siblings.
Besides the badging, look for some blue trim bits and pieces inside and out, along with additional digital touchpoints inside.
And while both ride on the same all-new platform that’s resulted in a substantially larger body compared to previous X1 generations, the EV version seems a bit more slammed.
Dimensionally, the iX1 mirrors today’s X1 at 4500mm long and 1845mm wide, and still sits on the same 2692mm wheelbase, but is 26mm shorter at 1616mm tall and offers 35mm less ground clearance at 170mm.
Result? These plus a bunch of aero enhancements mean the slipperiest iX1 manages a Cd of just 0.26, according to BMW.
And, inevitably, the extra size equals more space inside.
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.
BMW also says the iX1’s cabin is almost as roomy in some ways as the larger X3.
Large doors allow for easy entry and egress, onto sumptuous front seats that provide exceptional comfort and support even on longer journeys.
Surrounded by an expansive feeling of space, the interior feels light and airy, as well as fresh, inviting and premium looking – something previous-gen X1s were rarely accused of being.
We’re talking on-brand stuff here, beginning with the excellent driving position, ahead of a crisp and attractive dash that’s pleasing to behold. Push-button starting and a small toggle lever operates the transmission.
An ever-so-slightly curved (towards the driver in the best-BMW old-school way) rectangular binnacle houses two digital displays – a 10.25-inch one ahead of the driver offering an array of configurable electronic dials, as well as a 10.7-inch multimedia touchscreen.
BMW pioneered the multimedia controller more than 20 years ago with iDrive, and this descendent of that system reveals all that expertise gained by being intuitive to operate and quick to respond to commands once familiarised. Which shouldn’t take too long.
It’s all very-EV centric, as the industry inexorably moves to total electrification, but there were a couple of voice-command errors in the iX1, revealing that such systems are still far from perfect. BMW does provide audio volume and climate hard buttons, thankfully, so the basics are looked after.
Speaking of which, the iX1 offers decent levels of vision out, superb ventilation and ample storage in the doors, on the dash and between the front seats. And, as we’ve noted previously in BMWs, the upright smartphone charger is a clever idea. Keeps it in position and is handy to glance at.
Out back, backrest comfort and support is A-OK, and even with the optional sunroof, our test iX1 provided sufficient space for taller bodies, while expected items like ventilation grilles, USB ports and cupholders are fitted.
Note that, though the 40/20/40-split backrests recline slightly, they do not slide as per in the ICE X1, as this is a desirable option.
Nor is the cargo capacity as good in the iX1, due to the inevitable space demanded by that rear-axle-mounted electric motor and battery pack. For the record, ranges from 490 litres to 1495L instead of 540-1527L. Plus, there’s no spare tyre, with just a tyre repair kit fitted.
These aside, the iX1’s spacious and inviting interior remains one of the compact SUV segment’s best.
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.
For now, only a single iX1 grade is available, dubbed xDrive30, starting from $84,900 (all prices are before on-road costs).
Most buyers seem to be choosing the no-cost-extra racier 'M Sport' pack over the more-conservatively presented 'xLine'.
Both come complete with double-the-usual AC charging capability (22kW), twin-motor all-wheel drive, a 67kWh battery, variable-ratio steering and adaptive dampers as standard.
In contrast, the Mercedes EQB 350 4Matic equivalent starts from over $107,000 (though a less-expensive single-motor front-drive version comes in from nearly $89,000), and both with a slower 11kW charger. Genesis’ advanced GV60, meanwhile, kicks off from nearly $108K.
We cannot remember BMW ever going so hard on comparative value in Australia, though how it responds to the sensational (though admittedly smaller) Volvo EX30’s $59,990 ask remains to be seen.
Anyway, the iX1 is no bare-bones special.
Besides the aforementioned twin electric motors, AWD, 22kW AC charger and (non-driver-configurable) adaptive dampers, there are goodies like keyless entry/start, a digital key with ultra-wide-band tech, a 10.7-inch multimedia touchscreen, a digital instrumentation cluster, ‘Hey, BMW!’ voice control, a head-up display, sat-nav with augmented reality view, dual-zone climate control, ‘Veganza’ artificial leather, a reversing camera, digital radio, Apple CarPlay/Android Auto connectivity, wireless phone charging, a powered tailgate, roof rails and 19-inch alloy wheels.
On the safety front, you’ll find driver-assist tech like autonomous emergency braking (AEB), lane-support systems, adaptive cruise control, adaptive LED headlights and automatic parking assist. More on those in the safety section below.
Need more but want to think less? BMW’s new and simplified option packs bundles key features like a panoramic sunroof, metallic paint (normally $1500 on its own), Harman Kardon audio upgrade, lumbar massaging front seats and alternative interior trims in a reasonably-priced $4700 'Enhancement Pack'.
There are several others bundles available, too, as well as a handy 22kW BMW AC Wallbox from $1199, not including installation, that cuts down home-charging from over 33 hours using the regular mains to around 3.5 hours.
And don’t worry, BMW diehards. You can still spend tens of thousands of dollars more via the company’s endlessly extensive options list. The Germans aren’t foolish.
Unlike in the iX3’s Hyundai, Kia or Genesis rivals, which use a pure EV skateboard platform and offer no internal combustion engine (ICE) alternatives on this architecture, there is no V2L Vehicle-to-Load capability. In other words, you cannot charge appliances or power your home in an electrical blackout scenario.
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 iX1 boasts BMW’s fifth-generation EV drive system, known as eDrive 5.0 (M170SF).
Being an xDrive30, there are two electric motors fitted – one on each axle to provide all-wheel drive. Both are electrically excited synchronous motor set-ups.
Drive is predominantly to the front wheels via a single-speed reduction gear transmission, unless extra traction is required, in which case the rear motor kicks in to power the back axle.
Combined with the aid of an overboost function, they deliver 230kW of power and 494Nm of torque, for a 0-100km/h sprint time of 5.6 seconds, on the way to a 180km/h top speed.
Tipping the scales at 2010kg, the xDrive30 provides a power-to-weight ratio of 114kW per tonne, which is a healthy number.
Suspension is via MacPherson-style struts up front and an independent three-link design out back.
If you care, towing limits are 1200kg braked and 750kg unbraked, with a 570kg maximum payload.
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.
BMW says the xDrive30 consumes an average of 18.3kWh/100km.
On the launch drive program, the vehicle displayed 21.3kWh/100km. That included some spirited highway and mountain-road driving conditions.
Fitted with a 67kWh lithium-ion battery pack with a useable 65kWh, the iX1 offers an ADR 81/02-rated range of 400km.
This means a relatively common 50kW DC public charger with a CCS Combo 2 socket will need about 65 minutes to replenish the battery from 10 to 80 per cent or about half an hour with a 150kW charger.
If neither are available, you'll require about 34 hours to charge to 100 per cent maximum using the normal household powerpoint plug. Or, as mentioned earlier, a 22kW AC Wallbox cuts that down to about 3.5 hours.
Each iX1 includes a three-year subscription with Chargefox.
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.
One of the best things about the iX1 xDrive30 is that it has just enough EV smoothness, refinement and speed to feel special, yet still drives and behaves as a BMW should.
Which hasn't always been the case with previous-gen X1s.
It helps that, from the driver’s seat, everything falls into place: the bracing seats, thoughtfully positioned relative to all controls; and the overall sporty/quality ambience that puts you into the brand mindset.
Select Drive, and the iX1 leaps away sweetly and silently, accompanied by an electric motor whir that's quite pleasing. At speed, acceleration is instant for fast overtaking and there’s plenty more in reserve if you really need to hustle along.
For a 2.0-tonne compact SUV, the steering is remarkably responsive, providing nimble yet secure handling. Maybe it’s all the low-slung weight and near-50:50 weight distribution, but the iX1 displays impressive cornering and road grip. It’s an enjoyable drive.
Initially, novices might find the brakes a bit sudden, but they’re actually pretty progressive once you get used to them, and they feel and stop with a more natural pedal feel than many hybrids we’ve experienced. Again, BMW has tuned the xDrive30 to feel inclusive.
Speaking of the stoppers, there are no paddle shifters to control the amount of single-pedal off-accelerator braking as per many other EVs, but putting the transmission from ‘D’ to ‘B’ brings a decent level of deceleration if not a full stop – as if you’re lighting resting your foot on the pedal. We’d like the option of a heavier self-braking function, though.
The launch program avoided city roads and heavy traffic, but we still found plenty of bad, pot-holed surfaces to favourably judge the adaptive dampers’ ability to help soak up the bumps.
While not super-soft or supple, the suspension is cushy enough for a comfy ride. And certainly better than many past BMW SUVs.
A bit too much road and tyre noise intrusion aside, the xDrive30 is dynamically very sorted indeed.
Which, when you consider all the other positive aspects of the iX1, you end up with a BMW offering an impressively broad band of capabilities.
It’s rapid, nimble and reactive to driver inputs, as you’d expect an SUV from this brand to be, without the compromise of harshness or discomfort.
What it’s like around town in a peak-hour crawl, or how far you can really get from a fully-charged battery, is something we’ll find out when we can conduct a full road test, so please watch this space.
Until then, as it stands, things are looking promising indeed for the xDrive30. Especially factoring in the value pricing.
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 awarded the X1 petrol versions a five-star rating in 2022, based on the European NCAP result. No separate iX1 figure is as-yet available.
The iX1 comes with many of the latest driver-assist safety tech features, including AEB with day/night pedestrian and cyclist detection. This system is operational from 5.0km/h.
You'll also find front and rear cross-traffic alert, secondary collision avoidance braking, as well as a blind-spot monitor, lane-departure warning and swerve-assist systems, speed assist tech like adaptive cruise control with full-stop/go functionality, stability and traction controls, anti-lock brakes with brake-assist and a drowsy driver alert.
The lane support systems start from 60km/h and the driver monitoring system kicks in from 70km/h.
Along with dual-front airbags, the front-seat occupants have side chest and side pelvis airbag protection, as well as an airbag between them to help mitigate lateral-impact injuries while outboard rear-seat occupants have side head airbags (also called curtain airbags) coverage. The total airbag count is seven.
ISOFIX child-seat latches are fitted to outboard rear seat positions, while a trio of top tethers for straps are included across the back bench.
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.
Last year, BMW introduced a five-year/unlimited kilometre warranty with all its products, finally catching up with the industry warranty average after a protracted period of just a three-year coverage.
While there’s no capped-price servicing, you can pre-purchase a number of service bundles, to help save a bit more money further down the track.
There's a choice of 'Basic' or 'Plus' packages, in four or six-year (both with unlimited kilometre) programs, known as 'Service Inclusive'. They cost $1263/$4784 and $1800/$5784, respectively. 'Plus' covers brake pads/discs and wiper blade rubbers.
Note, however, that roadside assistance remains at three years.
Keep in mind, too, that BMW vehicles have a self-diagnosis feature that varies the service intervals according to how they’re used as well as wear and tear.
Our advice is to keep making an appointment annually or at about every 10,000km, just to be on the safe side.