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.
There has never been a better time to be shopping for an electric SUV in Australia, with the avalanche of Chinese brands constantly smashing through the price floor as they bid for the title of Australia’s cheapest.
MG led the charge with its S5, which is $40,490, drive-away. Then Leapmotor upped (or downed?) the ante with its B10 with a $38,990, drive-away, price tag. And now BYD has knocked them both out with its Atto 2, officially Australia’s cheapest electric SUV (at least for now), with a MSRP of $31,990, which, in NSW, translates to a drive-away cost of less than $35K.
Cheap is one thing. But cheerful? Let’s find out, shall we?
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 BYD Atto 2 isn't just the cheapest electric SUV in Australia, it's also one that doesn't feel all that cheap, which is a hell of a magic trick. If it's easy, comfortable city motoring you're after, the Atto 2 delivers in spades. But if your blood type is high octane, there are better driving EVs out there.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
Note: The author, Andrew Chesterton, is a co-owner of Smart As Media, a content agency and media distribution service with a number automotive brands among its clients. When producing content for CarsGuide, he does so in accordance with the CarsGuide Editorial Guidelines and Code of Ethics, and the views and opinions expressed in this article are solely those of the author.
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.
I think it’s a sharp-looking thing, this Atto 2. Kudos to BYD for not making the design look like it’s trying too hard, or like the Atto 2 is something it isn’t. It’s just smooth, sensible small SUV with styling that looks like it will age gracefully.
I like the chunky black moulding which makes it look a bit tougher than it is, plus the LED DRLs and swept back (and spoiler-equipped) roofline add a bit of visual drama.
Inside, BYD has made two pretty good choices. The first is that the cabin feels toned down from the one in the Atto 3 (which is all chunky wheel-style controls and vents).
This one feels far more sedate and conventional in its design, which I think is a win.
The other good decision is to equip the Atto 2 with soft plastics, rather than hard scratchy ones, in places like the door panels. In some cheaper cars, you feel your elbows constantly rubbing against cheap-feeling plastics, but that’s not the case here.
Too much stuff is still controlled through that central screen, and BYD has an awkward way of shortcutting functions. They call it a three-finger swipe, meaning that if you run three fingers across the screen horizontally you can adjust the climate-control’s fan speed, while swiping horizontally adjusts temp, but it feels like a weird movement.
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 Atto 2 measures 4310mm in length, 1830mm in width and 1675mm in height and it rides on a 2620mm wheelbase. It also sits on BYD’s fully-flat EV platform, which helps to maximise space in the back seat.
I’m 175cm tall and could get comfortable behind my own driving position, with enough knee and headroom to ensure I didn’t feel cramped.
There are two ISOFIX attachment points, one in each window seat in the back as well as USB-A and -C connection points.
Boot space is a not cavernous, but also not tiny, 380L with the rear seats in place, growing to 1320L with the rear pews folded flat. Both models also offer a V2L (Vehicle to Load) connection, too, so you can power up household devices.
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.
This thing really is cheap. The BYD Atto 2 arrives with a two-model range kicking off with the Dynamic, at $31,990, before on-road costs, before stepping up to the Premium at $35,990 BOC. They both get the same motor and battery, by the way, so the extra money comes down to extra kit.
The Dynamic rides on 16-inch alloys wrapped in cheaper Westlake rubber, scores LED headlights and DRLs and gets rain-sensing wipers and heated wing mirrors. Inside, there’s a 10.1-inch central touchscreen, an 8.8-inch driver display, synthetic leather seats with manual adjustment up front and wireless Apple CarPlay and Android Auto linked to a four-speaker stereo.
The Premium rides on 17-inch alloys wearing better Hankook rubber, and there’s a panoramic glass roof with a shade and roof racks. Inside, the central screen grows to 12.8 inches, and there’s an eight-speaker stereo and a wireless charge pad. Your seats are now electronically adjusted and heated and cooled. Plus there’s some extra safety stuff, but we’ll cover that off in a second.
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 Atto 2 models share the same powertrain - a front-mounted electric motor producing 130kW/290Nm which is sent to the front tyres. It feels fairly sedate, even under flat-footed acceleration, though BYD reckons you can knock off the sprint to 100km/h in 7.9 seconds.
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.
Both models also share the same battery, a 51.1kWh LFP unit, which should unlock a WLTP driving range of 345km. AC charging is pegged at 7.0kW, so a good match for a standard home wallbox, while DC fast charging is 82kW. Using the latter, BYD says you should go from 10 to 80 per cent charged in 38 minutes.
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.
Your drive experience in the Atto 2 very much depends on what you ask of it.
Or to put it another way, the first half of my drive route was a breezy run through the city and suburbs, then onto the freeway, before arriving at our destination.
It was probably 60 kays or so, and across it all the Atto 2 felt quiet and comfortable, with enough power at its disposal to easily get up to speed and stay there.
In the second half, though, I hunted down some twisting roads and cracks started to appear. The ride is pretty solid and there isn't huge amounts of body roll during more enthusiastic cornering.
But the steering is vague and there's plenty of slack – you can turn the wheel a fair bit without eliciting much response from the tyres.
Interestingly, turning the wheel with a bit of aggression also produced a weird sound up front, like you could hear the mechanicals shifting the tyres.
The tyres make a difference, too, with the Premium's more expensive Hankook rubber far happier to hang on without squealing than the Dynamic's Westlake tyres.
But context is key here. The Atto 2 is an accessible, affordable city-focused EV, and it performs those duties admirably. But if you're sold on a car-driver connection, there isn't much of that on offer here.
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.
The Atto 2 is yet to be assessed by ANCAP but there’s no shortage of stuff. The entry-level car gets six airbags, rear parking sensors and all the usual traction tech. Then there’s active cruise, lane departure warning, blind spot monitoring, cross-traffic alert in both directions - the list goes on. In fact, the only things the Premium adds on top are a 360-degree camera and front parking sensors.
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.
BYD’s warranty is an okay six years but just 150,000km, which is underwhelming compared to the best in the business. The battery is covered for eight years or 160,000km.
BYD vehicles typically have 12 month, 20,000km service intervals with capped price servicing, but the details are yet to be confirmed for the Atto 2.