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.
Numerous commercial van manufacturers are adding battery-electric vehicle (BEV) variants to their model line-ups.
Anecdotal evidence suggests these vehicles are best suited to city and suburban fleet duties, in which they cover short-loop daily driving distances that are comfortably within a manufacturer’s claimed battery range and return to depots each day to be recharged.
However, given that it’s still relatively early days for electric vans, potential buyers are faced with numerous potential deal-breakers compared to conventional internal combustion engine (ICE) equivalents.
These include higher purchase prices, limited driving ranges, longer 'refuelling' times, heavier kerb weights (due to their large batteries) and resulting smaller payload ratings. And they are usually not rated to tow.
However, they can also offer lower operating costs. And they produce zero tailpipe emissions, which according to Mercedes-Benz "creates a powerful marketing tool (for buyers) to demonstrate their commitment to operating sustainably".
We recently trialled M-B’s Vito-based contender in this pioneering LCV market segment, to see how it measures up in Australia’s highly competitive medium-sized (2.5-3.5-tonne GVM) van market.
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.
It’s arguably the best-looking mid-size van on the market, particularly with the optional enhancements fitted to our example. And its longer (km-based) service intervals and capped-price servicing costs offer substantial savings compared to a diesel Vito equivalent.
However, the eVito has a much higher purchase price, smaller payload, shorter driving range, can’t tow a trailer and feels a tad under-powered at low speeds. Plus filling its battery with fresh charge takes much longer than filling a tank with diesel, which may or may not be an issue depending on planned usage.
Therefore, a buyer would need to have not only a sizeable purchasing budget but also very specific and resolute criteria for this vehicle to shine in a commercial role.
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 eVito’s front-mounted electric motor drives the front wheels. Its lithium-ion battery is located beneath the standard Vito floor to ensure load volume is not reduced. This substantial battery is as wide as the load floor and extends from just behind the front wheels to just ahead of the rears. Its charging port is located behind a spring-loaded body flap ahead of the left front wheel.
It rides on a 3200mm wheelbase with 5140mm overall length, 1928mm width and a kerb-to-kerb 13-metre turning circle, with 1916mm height allowing access to underground and multi-storey carparks. It’s equipped with strut-type front suspension, semi-trailing arm/coil spring rear suspension and four-wheel disc brakes.
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 its hefty 2318kg kerb weight and 3200kg GVM, the eVito has an 882kg payload rating. That is 183kg less than a diesel equivalent (119 Vito MWB RWD), given that the eVito is around 300kg heavier than the ICE version largely because of its battery.
And unlike the diesel alternative, which is legally rated to tow up to 2500kg of braked trailer, the eVito has no tow rating, which is consistent with other electric vans we’ve tested and a potential deal-breaker for tradies.
The cargo bay offers a competitive 6.0 cubic metres of load volume and is accessed through sliding doors on each side (822mm openings), with large internal assist-handles on the bulkhead. Rear cargo bay access is through a swing-up tailgate, which can limit the use of forklifts not fitted with extendable tynes. All doors and walls are internally lined.
The load area is 2678mm long, 1709mm wide and 1392mm high. With 1270mm between the rear-wheel housings, it can carry two 1165mm-square Aussie pallets or up to three 1200 x 800mm Euro pallets, secured by eight sturdy load-anchorage points.
The cabin bulkhead has a cavernous open storage area at its base which is handy for storing ropes, straps etc. The upper section of the bulkhead protrudes about 20cm into the openings of the side sliding doors which may obstruct loading of large items.
Cabin storage includes a large-bottle holder and bin in the base of each door, with smaller bins at mid-height. There’s also an overhead glasses holder, two cupholders and three open bins across the top of the dash, a single glovebox and a hidden compartment beneath the passenger seat which is handy for storing small items or valuables out of sight.
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.
Our test vehicle is the eVito Panel Van MWB (Medium Wheel Base), which comes equipped with a single 85kW/360Nm electric motor and a 60kWh battery for an eyebrow-raising list price of $91,051 plus on-road costs.
Our sparkling example looks more upmarket than the standard offering, as it’s equipped with the optional $2779 Sport Package comprising metallic paint (Brilliant Silver on ours), body-coloured front and rear bumpers, black roof rails, fog lamps, black leatherette upholstery and a choice of 17-inch alloy wheels. These good-looking rims are fitted with 225/55R17C Dunlop Econodrive tyres and there’s a standard full-size steel spare.
Other options, including premium infotainment and electronic interface functions, cargo bay wood-flooring/LED lighting and more, raise the as-tested list price to $99,871 - which means you’re looking at six figures to drive away in this stylish two-seater.
So, what’s a $100K electric Mercedes-Benz van include as standard equipment? Let’s start with a conspicuously long (8.0 metres) charging cable stored in a vinyl bag. There’s also a chrome grille, tinted windows and heated door mirrors, but headlights/daytime running lights/tail-lights are halogen when you’d expect to see LEDs at this price.
Inside, there’s a full steel bulkhead (with large window) separating the cabin from the cargo bay, a leather-wrapped and two-way adjustable multi-function steering wheel, two USB ports, high-gloss black trim appointments in the upper central console, and a chrome interior package including air-vents, air-con dials, door-handles and surrounds.
Also standard are ‘Comfort’ bucket seats for driver and passenger with heating, base-cushion length adjustment, fold-down inboard armrests and powered adjustments including height/reach lumbar support. The infotainment system has a relatively small 7.0-inch touchscreen, but there’s digital radio, voice command and multiple connectivity including Apple/Android devices.
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 eVito’s single electric motor drives the front wheels via a single-speed transmission. It produces 85kW of power and 360Nm of torque from the energy stored in its 60kWh battery.
Using the steering wheel paddles, drivers can switch between five energy-recuperation modes to optimise battery range and reduce manual brake use. These range from D- (strongest deceleration/recuperation) through D, D+ and D++ which progressively reduce these effects. DAuto uses a radar sensor to automatically adjust the recuperation level according to surrounding traffic.
There are also three switchable drive modes comprising E+, E and C, which allow drivers a choice of energy consumption/performance levels.
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.
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.
It’s easy to get comfortable given the height/reach adjustable leather-wrapped wheel and powered multiple seat adjustments, which include base cushion rake and height/reach lumbar support. The base cushion can also be manually extended for more under-thigh support by sliding the front section forward.
There’s good eyelines to the door mirrors and, thanks to the large window in the cabin bulkhead, the central rear-view mirror has an unobstructed view through the tailgate window. The passenger-side mirror’s wide-angle view, combined with active blind-spot monitoring, help to minimise the large blind-spot over the driver’s left shoulder that all solid-walled vans share.
Steering is nicely weighted and communicative, unladen ride quality is supple thanks to its four-coil suspension, and four-wheel disc brakes provided reassuringly strong braking response. However, there was also noticeable tyre noise intrusion at speeds above 60km/h on coarse bitumen surfaces.
Acceleration from standing starts feels leisurely at best, even when using full power. This is when the eVito’s 2.3-tonne kerb weight is noticeable, which is not surprising when you compare its weight-to-power and weight-to-torque ratios with a diesel Vito (MWB) equivalent.
For example, based on kerb weights, the 119 CDI Panel Van (140kW/440Nm) has to move 14.2kg/kW and 4.5kg/Nm compared to the eVito’s much heavier 27.3kg/kW and 6.4kg/Nm.
However, the power delivery is seamless and once up to cruising speeds the response noticeably improves, fortunately in the 60-80km/h range where much city and suburban travel occurs. The key to fluent progress in traffic is maintaining momentum.
To test its load-hauling ability, we inflated the tyres to the recommended pressures and forklifted 650kg into the cargo bay through the side doors. Combined with driver and equipment, this equalled a 750kg (three-quarter-tonne) payload which was about 130kg short of its maximum rating.
With the cargo bay load positioned well ahead of the rear wheels, the rear suspension only compressed 25mm with no risk of bottoming-out over bumps.
Our 50km test route comprised mostly city and suburban routes (for which this vehicle is tailored) plus some highway driving. There wasn’t a noticeable drop in handling, braking or ride quality with this payload, although standing-start acceleration felt more subdued as you'd expect.
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.
There is currently no ANCAP rating. Even so, it comes with a suite of standard passive and active safety features including front, thorax and window airbags, AEB, blind-spot monitoring with rear cross-traffic alert, lane-keeping, active parking assist, crosswind assist, front/rear parking sensors, DRLs, active cruise control, reversing camera and more. There’s no speed sign recognition, though.
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 eVito has a five-year/250,000km vehicle warranty with an eight-year/160,000km battery warranty and a 24-hour roadside assist support package. Scheduled servicing is every 12 months/40,000km whichever occurs first. Capped pricing for first five scheduled services totals $2432 or an appealing average of $486 per service.