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.
This is actually the Carnival that Kia always wanted.
See, the last Carnival, the one this replaces, was Covid compromised, missing out on key technologies, as well as skipping an in-depth ride and handling localisation program, due to part supply issues and a freeze on international travel.
This one, though, addresses all of that, which is why you get a new cabin experience, new tech, and a complete overhaul of the steering and handling.
It is, however, significantly more expensive, right across the range.
So, is the Carnival still worth it? Let’s find out.
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.
Ok, here's the rub. Everything you just read could well be pointless. You like the Carnival. In fact, it sometimes makes up close to 90 per cent of the sales in its segment, and outsells all of its competitors combined.
So whether I like it or not, I suspect you'll be buying one anyway.
But I can say this - the new Carnival improves the formula right across the board. Well, everything except for price.
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.
Surely the greatest trick the Carnival pulls off, and it does so convincingly, is that it manages to make something so quintessentially uncool, the people-mover, and make it look good. Somehow sporty, even.
I like the Carnival's big, bold and blacked-out front end of the GT-Line, and with its two-tone 19-inch alloys, wide stance and low ride height, it looks almost like some mad attempt at a JDM tune car, rather than a sensible people mover.
Elsewhere, the boxy profile, the sharp body creases and the third-row compartment that kind of juts over the rear tyres like a house that's been extended all somehow work, and give the Carnival far more street cred than you might expect.
Inside, we spent time only in the flagship GT-Line and its GT-Line Lite sibling, and both present as calming, comfortable spaces, and Kia's minimalist approach to combining the climate and audio controls into a single strip (it's functionality can be changed by pushing a button) helps keep the cabin fuss free.
The tech in the top-spec models feels modern and on-point, too, and the materials are all nice under the touch. Be warned though, the cabin plastics get progressively worse the further back you sit, and the third row is cocooned by hard and scratchy plastics.
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 Carnival measures 5115mm in length, 1995mm in width and 1775mm in height, and it rides on a sizeable 3092mm wheelbase.
And those mini-van dimensions have a predictably positive impact on luggage space, with room growing from 627 litres with all seating rows in place, to a massive 2827 litres with the third row stowed.
The key practicality perk here, though, is space, and lots of it. At 175cm, there was ample room for me in the middle row, and you can configure the cabin to your liking, too. You can slide the row on rails, for example, to prioritise leg room where you need it, and the middle seat folds down to reveal cupholders in a kind of hard plastic travel tray.
But even in the third row I could easily get comfortable, though head room begins to get a little tighter. There are cupholders and USB connection points, too, and I can honestly say you could send full-size humans back there and not feel overly guilty about it.
The Carnival will tow 2000kgs braked, 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.
Bad news first. The price is higher this time around, right across the five-trim line-up, with the prices up between around $2600 and $5300, depending on which trim level you’re shopping for.
Prices start at $50,150 for the entry-level S petrol, and climb to $72,910 for the top-spec GT-Line diesel. There’s also a GT-Line Hybrid, which tops the group at $76,210, but it’s not here yet, so we’ll cross that electrified bridge when we get to it and stick with the ICE range for now.
The range opens with the S ($50,150 petrol, $52,380 diesel), which scores 17-inch alloys, LED headlights and DRLs, heated mirrors, cloth seats, an electronic parking brake, and a smart key with push-button start, which is new for this update.
On the tech front, there is a new integrated 4.0-inch driver display, and a new 12.3-inch central screen with Apple CarPlay and Android Auto, linking with an eight-speaker sound system, now with a surround-sound function.
Stepping up to the Sport ($56,050 petrol, $58,280 diesel) adds 18-inch alloys, rear LED combination lamps, a leather steering wheel and shifter, and dual-zone climate up front with single-zone temperature control in the second row. New for this update is a wireless charging pad and artificial leather seats.
Next is the Sport+ ($62,380 petrol, $64,610 diesel), which gets a whole host of new safety equipment, which we will come back to in a moment, along with a powered tailgate, automatic sliding doors and auto windows, and heated seats in the first and second rows. It also ups the tech, with twin 12.3-inch screens taking care of multimedia and driving info duties.
Then comes the GT-Line Lite ($66,350 petrol, $68,580 diesel), which is fitted with bigger 19-inch alloy wheels, scores LED interior lighting, gets a dual-pane auto sunroof and some chrome embellishments on the exterior. The trade-off, though is that the powered windows are now for the driver only, as is the powered front seat.
Finally, there’s the flagship GT-Line ($70,680 petrol, $72,910 diesel), which nabs dual-projection headlights, a heated steering wheel, a 12-speaker BOSE sound system, ventilated seats up front, a big head-up display and a digital rear-view mirror, along with a slightly better interior treatment and the return of the auto window and powered seat to the passenger side of the car.
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.
There are two ICE options on the table here. The first is what I reckon is the lesser of the two, a 3.5-litre petrol V6, producing a rev-happy 216kW and 355Nm.
The better option, I think, is the 2.2-litre, four-cylinder diesel, which makes 148kW and 440Nm, and just suits the nature of the car a little better.
Both pair with an eight-speed automatic, and send their power to the front tyres.
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.
The petrol engine will sip a claimed 9.6 litres per hundred kilometres on the combined cycle, and produce 220g per kilometre of C02. The diesel lowers both those numbers, to 6.5 litres and 170 grams.
Both models are fitted with a 72-litre fuel tank, which means you’ll be sailing well north of $100 to fill one up.
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.
Forgive the horrific paraphrasing, but it seems rumours of the death of diesel have been greatly exaggerated, at least when it comes to the Kia Carnival.
Get this – diesel sales make up some 90 per cent of the Carnival's total haul, with petrol providing a pittance towards the sales total, presumably being picked up by fleet buyers.
And to be honest, that means nine out of 10 people are making the right choice here. Yes, the petrol makes more power, but it's the torque on offer from the diesel that makes pushing the Carnival around feel far more effortless.
The petrol engine can definitely get you moving, but it feels a bit too rev-happy and thrashy when you really put your foot down, and its significantly thirstier to boot.
The diesel isn't perfect – the thrum of the engine is a constant companion whenever you put your foot down, and there's actually too much torque on offer at times, like if you're accelerating up hill from a standstill on a damp road, and so the front tyres can scrabble and scramble for grip.
But it otherwise so perfectly suits the nature of the Carnival that it is definitely the best and most satisfying choice.
Another big change for this update is the fact that Kia's complete ride and handling program has been rolled out here. Kia says local work done on the outgoing car, the one this replaces, was curtailed by Covid and bushfires, and so ended up being done by correspondence.
This one, though, has had the whole enchilada thrown at it, and it shows. They've succeeded in making a bigger car feel smaller around you. It's not a sports car by any measure, but nor does it ever feel too big and unwieldily.
Part of that is down to the steering, which is direct and confidence inspiring, but mostly I suspect it's because of the ride, which is firmer than you might expect in a family hauler, but also offers a connection to that road below that makes you feel in control.
Whether a firm-ish ride is a perk or negative is up to you, but it definitely works for me.
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.
Part of the change package for this updated Carnival is in its safety kit, some of which simply wasn’t available when Kia launched its predecessor.
Which is why every model now gets a centre side airbag, 'Forward Collision Assist AEB', 'Rear Occupant Alert', 'Trailer Stability Assist' and front parking sensors, joining the rear ones that were already there.
Sport+ Models and up now add a 'Blind Spot View Monitor' and rain-sensing wipers, as well as rear AEB through the 'Parking Collision Avoidance' function.
I have to say, though, when your entry-level car is $50k-plus, there’s no real excuse for limiting the best safety kit to the upper-spec models.
Also standard are lane keep assist, with 'Lane Follow Assist', multi-collision braking, a speed-limit warning (which you will turn off) and a reversing camera.
The Carnival range carries a five-star ANCAP safety rating, which it earned in 2021.
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.
Like all Kias, the Carnival arrives with a seven-year, unlimited-kilometre warranty, with capped-price servicing throughout.
Kia’s servicing costs are higher than some of its competitors, though, so you might want to compare them, as well as compare what’s included, and the diesel model will usually cost slightly more to maintain than the petrol version.
Service intervals are every 12 months or 15,000kms, and while the brand is still finalising the petrol servicing costs, the diesel prices are $386, $682, $480, $869, $434, $845 and $461, covering the first seven years of ownership.