Volkswagen Transporter vs BMW M135i

What's the difference?

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.

To answer the question of whether it matters that the new 1 Series is no longer rear-wheel drive, I say no it doesn’t. It may not be as romantic on the absolute limit, but it is better in every measurable way, and still feels distinctly BMW despite moving to the conventional layout of its rivals. 

Be sure to check out Mal’s video review from the 1 Series launch last December:

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.

Yes, that kidney grille is rather large. If you want everyone to know you drive a BMW, you’ll love it. If not, get used to it. The X7, recent 7 Series update and upcoming 4 Series suggest they’re only going to get bigger. 

Nose aside, the 1 Series hatch has always had a distinctive, long-bonnet profile, which has generally been attributed to the rear-drive layout. Despite the move to a transverse engine, the new one is actually very close in proportions when compared side by side.

It’s just 5mm shorter in overall length and 13mm taller, with body width being the most notable change at 34mm wider. 

The key difference is that the front and rear wheels have been moved further back into the body, because of said engine layout change, and to make more back seat space in the rear.

Surprisingly for a model aimed at a younger demographic, the new 1 Series interior design isn’t quite the same step forward as the recent G20 3 Series.

It’s a cut above the X1 and X2 SUVS the new 1 Series shares its underpinnings with in terms of the shapes used, but is still classic understated BMW. 

However its headline act is the Live Cockpit driver display on both models, which gives you fully digital instrumentation and replaces traditional analogue gauges once and for all.

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.

With my modest 172 cm height, I never had any trouble with the old model, but the new 1 Series is a bit more more spacious by all the important measures.

The back seat base and backrest are a bit flat though, which is probably to help the backrest fold almost flat, but probably not very supportive during hard cornering.

There's also no centre armrest in the back or cup holders, but you do get bottle holders in the doors.

You also get two ISOFIX child seat mounts and there’s two USB-C charge points in the back of the centre console, but there's no directional air vents unless you opt for the dual-zone climate control that comes standard with the M135i. 

The boot has grown by 20-litres to a pretty impressive 380 litres VDA which includes a very useful cavity under the floor instead of a spare tyre. An inflation kit is there for those duties. With the back seat folded flat, boot space expands to 1200 litres VDA. 

For the F40 generation, the 1 Series range has been cut back to two variants from launch, with the 118i for volume sales and the M135i xDrive hot hatch taking aim at the new Mercedes A35 and the Audi S3. 

Both versions were priced $4000 higher than the equivalent models they replaced from launch, but have recently jumped a further $3000 and $4000 respectively. This puts the now-$45,990 118i beyond the starting prices for the equivalent Audi and Mercedes, and the $68,990 M135i xDrive is now nudging the A35’s list price.

The launch prices were largely offset by extra equipment over the previous generation, but the more recent hikes have taken the shine of this somewhat.

Thankfully, both 1 Series models now come standard with wireless Apple CarPlay. The previous ‘one year free, the rest you need to subscribe for’ plan has been scrapped since we shot the launch video below in favour of free CarPlay for life. There’s still no Android Auto, but this is due to change in July. 

The 118i packs more standard equipment than before in general, including the M Sport styling pack, head up display, wireless phone charger and adjustable ambient lighting.

The M135i adds bigger brakes, a rear spoiler and 19-inch wheels, plus sport seats with leather trim, and Harman/Kardon audio among a few other things.

You can get even more from the M135i with the $1900 M Performance Package, which drops the 0-100km/h claim by one tenth to 4.7s thanks to enabling engine overboost and lighter forged 18-inch alloys, which is signified by gloss black grille surrounds, intake elements in the front bumper, mirror caps and exhaust tips.

Other options include the $2900 Enhancement Package, which brings metallic paint and a panoramic glass roof. On the 118i, it also brings 19-inch black alloys. On the M135i, it also brings active cruise control with stop and go function. This package costs an extra $500 if Storm Bay metallic is chosen. 

The Comfort Package costs $2300 with the 118i and $923 with the M135i, and brings front seat heaters and lumbar adjustment for both front seats. On the 118i, it also brings proximity keys and electric front seat adjustment. On the M135i, it also brings a heated steering wheel.

The Convenience Package costs $1200 with either variant, and adds a powered hatch, modular storage system and cargo net and a ski port for the back seat.

The 118i can also be optioned with the $1000 Driver Assistance Package, which adds active cruise control (plus 0-60km/h AEB), adaptive LED headlights with auto high beams and a tyre pressure monitor.

Beyond the 118i’s standard M Sport pack, it can also be augmented with the $2100 M Sport Plus Package. This brings sports front seats, a rear spoiler, M-coloured seat belts, a sports steering wheel and upgraded M Sport brakes.

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.

Both cars use versions of the three and four cylinder petrol engines from before, with the popularity of automatics leaving the previous manual option consigned to history.  The 118i’s 1.5-litre turbo three cylinder now produces 103kW/220Nm, with max torque available all the way from 1480-4200rpm. The 118i now uses the seven-speed dual clutch automatic transmission, as seen on Mini models that use the same engine. 

The M135i’s 2.0-litre turbo has been tweaked to take the place of the six-cylinder M140i from the last model and now produces 225kW/450Nm, with max torque available all the way from 1750-4500rpm. Its auto remains a torque converter though, but now the transverse-mounted unit also shared with Mini models with the same engine and splitting drive to all four wheels via the xDrive system for the first time. The drive split is constantly variable, but the rear bias tops out at 50 per cent and the only limited slip diff is an electric unit on the front axle.

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.

Official combined fuel consumption is a decent 5.9L/100km with the 118i, but the M135i steps up to 7.5L/100km) 2.0 litre four in the m135i. Both engines require premium unleaded. 

Fuel tank sizes vary across the two models also, with the 118i measuring 42 litres and the M135i managing 50 litres, despite its need to package rear drive components somewhere under there also. 

This results in a decent theoretical range between fills of 711km for the 118i and 666km for the M135i. 

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.

For a brand with a marketing slogan of pure driving pleasure, this is the important part, particularly given the new 1 Series has lost its rear wheel drive USP. 

Why do some of us love rear wheel drive? It tends to be more fun when you're driving on the limit, and generally makes for nicer steering because you're only using the front wheels to turn corners.

So how does the new 1 Series drive? That depends on which version. 

The 118i is quite a nice package really. It rides a bit more gently than what I remember in the A-Class and generally feels more like a premium product. It also feels a step ahead of the 2 Series Active Tourer it shares its underpinnings with, which is a good thing.

The three-cylinder engine is quite smooth for a fundamentally unbalanced triple, and it makes enough power to get you out of trouble. 

Do you miss rear wheel drive? Not really, as you can only tell the difference when you're going real fast, which let's face it, is not somewhere 118i drivers are likely to go very often. 

The M135i is a vastly different beast, as you'd expect. Aside from being real quick, it's that much tighter everywhere, but still definitely on the more comfortable side than what we expect the future full house M version to be.

The continuously variable xDrive all-wheel drive system does a great job of putting its power down, but the rear bias maxes out at 50 per cent, which is probably spot on for chasing lap times, but means you miss out on the tailiness of the old one altogether. 

So it’s not as classically fun as the old M140i, but it’s easily faster, and that's what will probably matter most to most buyers. 

The new 1 Series comes with most of the important safety gear, but like the X1 and X2 SUVs and 2 Series Active Tourer that the new 1 Series shares its platform with, you still can’t get proper auto emergency braking unless you opt for active cruise control.

Both versions do offer partial automatic braking, which confusingly was enough to earn the new 1 Series a maximum five-star ANCAP safety rating according to 2019 standards, but we feel this is not good enough and is worth considering before you put your money down.

Aside from the options packages mentioned  above, active cruise control with AEB (up to 60km/h) can be added to either version for $850, but when it’s been a standard item on something as cheap as a Mazda2 since 2017, it’s not a good look. 

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.

BMW is yet to step up to the five year warranty offered by most mainstream brands and now Mercedes-Benz and Genesis, continuing with the three year/unlimited coverage matched by Audi. 

As always, BMW describes the service intervals as condition based, and the car will alert the driver when a service is due. This will occur at least every 12 months though, but individual intervals will vary based on how the car is driven. 

This can all be bundled into five year/80,000km service packs though, with the Basic pack costing $1465, but the Plus pack adds brake pad and disc replacement to regular fluids and consumables for $3790. Assuming 12 month intervals, these prices are about average for a premium branded product.