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.
KGM (formerly SsangYong) has revised its Musso range for 2026 with some new features and revised styling throughout the Australian line-up, as well as a name-change for this grade: the Advance which used to be the Adventure.
The updated Musso is a dual-cab 4WD ute with high and low-range gearing, an auto-locking rear differential and 3.5-tonne towing capacity, and all for under $50,000.
And with the optional XLV (extra long vehicle/version) pack, which our test vehicle has, it gets a longer wheelbase (110mm extra), a 300mm longer tub and 90kg of extra payload over the standard Musso (880kg rather than 790kg).
So, is the Musso an affordable alternative to the likes of Toyota HiLux and Ford Ranger?
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 KGM Musso Advance is a large 4WD ute offering a decent amount of appeal for the price and it makes a lot of sense in XLV form.
It’s generally nice to drive, it’s comfortable and capable for a ute and – as with the Rexton – the Musso is another clear sign that KGM continues to improve its vehicles, albeit incrementally in some cases, in terms of quality and functionality.
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 Musso is based on its SUV stablemate, the Rexton. It’s a body-on-frame 4WD ute, available only as a dual-cab, and its appearance is inoffensively pleasant.
Styling changes to the Advance include a black grille, black 18-inch alloy wheels, HID headlights (on short and XLV grades), and rear privacy tint.
It also has a black leather-look interior with black leather-look seats.
The Musso’s interior offers plenty of space for the driver and passengers and is neat and well laid out.
Build quality and fit and finish are impressive with a mix of durable plastic and soft-touch surfaces throughout including a leather steering wheel and leather-look seats in the Advance.
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.
There is the expected array of storage spots (glove box, door pockets etc), cupholders (two to the rear of the auto shifter) and charge points (two USB-C ports and a 12-volt plug point for driver and front passenger).
The seats are comfortable and supportive and, in general, KGM has maximised space in the cabin, yielding plenty of shoulder and legroom for driver and passengers.
The 12.3-inch touchscreen multimedia system works reasonably well although you do have to cycle through numerous menus and sub-menus to change some settings and I did have to try several times to pair my phone to it, so overall functionality is clunky.
Rear-seat passengers have access to directional air vents, but there are smart-device charge points.
The tub size is as follows: 1600mm long in the XLV (1300mm in the standard Musso), 1570mm wide (1100mm between wheel-arches) and 570mm deep. The tub has a plastic tub liner and four tie-down points.
For a direct comparison of dimensions: the standard Musso is 5095mm long with a 3100mm wheelbase while the XLV is 5405mm with a 3210mm wheelbase; the standard Musso is 1950mm wide and 1870mm high (the XLV is 1885mm). For reference, the Ford Ranger XLT dual-cab ute is 5406mm long (including rear bumper and tow bar receiver) with a 3270mm wheelbase.
The difference in dimensions between a standard Musso and the XLV version also means a difference in off-road angles so approach is 22.8° / 25° (XLV), departure is 23.4° / 20° (XLV) and rampover is 23° / 20° (XLV).
Minimum ground clearance is 215mm in a standard Musso and 220mm in the XLV, so the Musso XLV does stand taller off the ground than its regular stablemate.
Kerb weight is listed as 2090kg for the standard Musso and 2100kg for the XLV. Turning circle is 11.8m for the standard Musso and 12.2m for the XLV.
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 KGM Musso is available in three grades - ELX, Advance, and the Ultimate. All three can be optioned up with an XLV Pack, which adds a 300mm longer tub giving you an additional 251L rear tub capacity, along with a 110mm longer wheelbase. XLV also increases maximum torque from 400Nm to 420Nm.
At the time of writing, our test vehicle, the Advance, has drive-away price of $48,700.
Standard features in the Advance include 12.3-inch touchscreen multimedia system (with wireless Apple CarPlay and Android Auto), 12.3-inch digital LCD instrument cluster, leather-accented heated and ventilated front seats with electric adjustment, 18-inch black alloy wheels, HID headlights, LED daytime running lights, and a suite of driver-assist tech, but more on that in the Safety section below.
Exterior paint choices include Grand White (no extra charge), Amazonian Green (metallic paint), Marble Grey (metallic paint), Pearl White (metallic paint) and Space Black (metallic paint). Metallic paint is available for $700.
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 KGM Musso Advance with the XLV Pack has a 2.2-litre four-cylinder turbo-diesel engine – producing 133kW at 4000rpm and 420Nm from at 1600-2600rpm – it gets an extra 20Nm over the shorter version's 400Nm from 1400 to 2800rpm.
It has a six-speed automatic transmission, part-time 4x4 with high and low range, and an auto-locking rear differential.
This is a sluggish combination producing a generally lacklustre performance and the powertrain is not particularly efficient but, having said that, the Aisin auto is a reliable, well-proven transmission and the Musso ultimately does reasonably well with what it has.
The 4WD mechanicals and driver-assist tech actually work better in this package than they do in the Musso’s stablemate, the Rexton.
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 fuel consumption for the Musso Advance with the XLV treatment is 9.0L/100km.
On this test, I recorded 11L/100km, but on the test I spent a chunk of time in 4WD high and low range.
The Musso has a 75-litre fuel tank, so going by my on test fuel-consumption figures, from a full tank, you could reasonably expect a driving range of about 681km.
But it is worth noting that I didn't have a lot of weight on board during this test – it was just me and the vehicle recovery gear – and you will have a lot more weight on board: your family or your mates, pets, camping gear, surfboards, kayaks, the whole kit and caboodle.
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.
On-road, the longer-wheelbase Musso is composed and comfortable with well-subdued NVH (noise, vibration and harshness) levels adding to an impressive overall sense of low-key refinement.
The engine and auto work reasonably well together, but as mentioned earlier this is a sluggish unit and it takes some urging to get it going. Pronounced lag from stand-still can be disconcerting, especially when you need plenty of zip to punch you into the traffic flow.
This ute’s suspension – double-wishbone, coil springs and stabiliser bar at the front, multi-link with coil springs at the rear – is firm, mostly controlled, but the Musso becomes jittery on irregular surfaces, such as lumpy back-roads bitumen and mildly corrugated dirt tracks.
One noteworthy annoyance: the Musso does not have adaptive cruise control.
Despite that, the Musso is actually quite reasonable for general driving duties.
As a 4WD, the Musso actually performs pretty well. It is a long wheelbase ute, so you have to drive it with consideration because you have to take into account its shallow off-road angles – approach, departure and ramp over – and it has quite a large overhang of tub behind the rear axle.
It has an auto locking rear diff, which is clunky in operation and I’d prefer a switchable diff-lock, which you could select whenever you want to, but otherwise it's effective in a workman-like kind of fashion.
Steering is not too shabby, it has a nice weight to it in all situations, whether you are on the bitumen or a dirt track. Turning circle on this long-wheelbase ute is 12.2m, but it feels nimble to steer around on the tracks.
The Musso has part-time four-wheel drive and high and low range 4WD gearing. It doesn't have a lot of power and torque in terms of the contemporary dual-cab ute market, but it does fine with what it does have; 420Nm in the XLV Musso gives it that little bit of extra punch over the standard Musso (400Nm) and that torque is available across a decent spread of revs.
If you intend to use your Musso as an off-road adventure vehicle or a weekend holiday machine, then it's handy to know that it's unbraked towing capacity is 750kg and its braked towing capacity is 3500kg and that's on par with the dual-cab ute market.
In terms of tyres, it’s the same story here as with most standard 4WDs – the Musso’s Nexen NPriz RH7 (255/60R18 108H) are not well-suited to anything other than light off-roading. The easy fix? Replace those tyres with some decent all-terrain tyres.
Payload is a listed 880kg (790kg in the standard Advance), GVM is 2980kg and GCM is 6480kg.
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 Musso does not have an ANCAP rating because it has not been officially tested.
As standard, the XLV Advance has six airbags, auto emergency braking (AEB), lane departure warning, trailer sway control, blind-spot monitoring, rear cross-traffic alert, front/rear parking sensors plus reversing cameras and more.
Adaptive cruise control is not offered on Mussos in Australia, only old school cruise control.
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 MY26 Musso range is covered by a seven-year/unlimited kilometre new-vehicle warranty, and five years of roadside assistance.
A service is required every 12 months or 15,000km, whichever occurs soonest with cost per service either $418 or $522.
Note, KGM considers off-roading as an example of a “severe driving condition” and so your Musso may require more frequent servicing.
KGM Australia has more than 50 dealerships across the country with a decent spread across metro and regional areas. Rextons can be serviced at those dealers or at approved workshops.