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.
The small van segment (Under 2.5-tonne GVM) is one of the smallest in Australia’s light commercial vehicle market, as it currently caters for only three contenders, the Volkswagen Caddy Cargo, Peugeot Partner and Renault Kangoo.
Although total sales in this category are a fraction of those achieved in the mid-size (2.5-3.5-tonne GVM) van division, these compact commercials are ideal for buyers not requiring the big one-tonne payload ratings and cavernous load volumes of their larger siblings.
Petrol and diesel-powered models are typically equipped with small displacement engines offering excellent fuel efficiency, combined with cabin ergonomics and driving dynamics which are the most car-like of any LCV offering.
French manufacturer Renault released its third generation Kangoo range in Australia in 2024, comprising a mix of petrol and full-electric variants. We were recently handed the keys to one of the petrol models to see if it has what it takes to win costumers in this three-way fight.
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 latest petrol-powered Kangoo has the pricing, practicality and performance to win friends in Australia’s small commercial van class. If you can afford an option pack or two, like those fitted to our test vehicle, it's even better.
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.
Our test vehicle is less than 4.5 metres long (4488mm) and well under 2.0 metres in width (1859mm) and height (1830mm), making it ideal for those with either limited parking space and/or needing to access space-restricted areas in their working roles.
Its compact 2716 wheelbase results in an 11.3-metre turning circle. This is larger than you might expect, given it’s no tighter than Toyota’s shortest HiAce mid-sized van.
However, it’s also line-ball with its small van rivals, which highlights the restrictions in steering lock shared by front-wheel drive vehicles compared to rear-wheel drivers like the HiAce.
The Kangoo features MacPherson strut front suspension and its rear suspension uses torsion bar primary springing supplemented by a pair of secondary coil springs for carrying heavy loads. There’s also rack and pinion steering and a quartet of disc brakes.
Bodywork and wheels confirm its no-frills work focus, with unpainted dark grey plastic prominent on the hubcaps, front/rear bumpers and along the sides where bumps and scrapes usually occur.
It has tidy styling for a commercial van, including the sharp cabin design that combines a tasteful blend of grey and satin chrome hard surfaces with the practicality of wipe-clean fabric upholstery and vinyl floors.
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.
Our test vehicle’s 1447kg kerb weight and 2010kg GVM results in a useful 563kg payload rating.
It’s also rated to tow up to 1500kg of braked trailer and with its 3510kg GCM (or how much it can legally carry and tow at the same time) it can carry its maximum payload while towing its maximum trailer weight for optimum versatility.
Cargo bay access is through asymmetric rear barn-doors which can be opened to 180 degrees for forklift and loading dock access, or sliding doors on each side with (according to our tape measure) 625mm openings. The walls and doors are lined to mid-height and there’s internal lighting.
The cargo bay’s load volume is a competitive 3.3 cubic metres and with more than 1.8 metres in length, almost 1.6 metres in width and more than 1.2 metres between the rear-wheel housings, it can easily swallow one standard Aussie pallet or two Euro pallets.
The load floor, which does not include a protective liner as standard equipment, offers a choice of six load-anchorage points.
The solid bulkhead doubles as a sturdy cargo barrier and insulates the cabin from cargo bay noise, most of which comes from the tyres emanating through the rear-wheel housings.
Given its compact dimensions, the cabin is surprisingly spacious and accommodating even for someone my height (186cm), thanks to front doors that open to a full 90 degrees, generous leg and elbow room plus a high roof relative to the seating position that adds to the airy feel.
Storage includes a large-bottle holder and bin in the base of each door, single glove box, full-width overhead shelf, large open tray in the centre of the dash-pad and (in standard form at least) a centre console with two cupholders and trays for small items.
However, given our test vehicle is equipped with the optional Business Pack, the standard console is replaced with a more elaborate version, which in addition to a pair of cupholders has a wireless phone-charging dock up front and a box with hinged lid at the back.
There’s also a sizeable clamshell-lid compartment set into the dash-pad ahead of the driver, which includes a smartphone holder on a stalk that can be easily moved to either side of the compartment depending on driver preference.
Our only criticism is the lid on the optional console box. Although it’s been thoughtfully angled downwards at the front to provide the driver with comfortable elbow support, there’s no mechanism on the hinge to hold it in the open position.
This makes it awkward to access the box, as the angled lid naturally wants to keep closing on your hand, so a detent in the hinge would be useful.
And, in a similar context, we’d also like to see hinge detents (or struts) to firmly hold the rear barn-doors open in their 180-degree positions, given their propensity to slam shut if hit by wind gusts during loading/unloading.
This can potentially injure the operator, so these devices should be standard issue, not only for Kangoos but all barn-door vans.
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 Kangoo petrol range is available in SWB (short wheelbase) with a choice of six-speed manual or seven-speed dual-clutch automatic, plus a LWB (long wheelbase) model available only with the auto.
Our test vehicle is the SWB auto, powered by the same 1.3-litre four-cylinder turbocharged engine shared by all petrol models, for a list price of $41,990.
That figure sits comfortably between petrol rivals in the small van class, including the Peugeot Partner Pro Short ($39,990) and Volkswagen Caddy Cargo TSI220 ($43,990).
Our example has been enhanced with genuine accessory carpet mats ($167) plus some desirable options including 'Highland Grey' metallic paint ($800) and the ‘Peace of Mind Pack’ ($1500) comprising blind-spot monitoring, front/rear/side parking sensors, driver attention alert, high-beam assist, navigation, overspeed prevention and traffic sign recognition.
It’s also equipped with the ‘Business Pack’ ($3000) which adds tyre pressure monitoring, hands-free key card, body-coloured external door handles, climate control, adaptive cruise control, centre console with armrest and storage, wireless smartphone charger, extra tinted rear barn-door glass, front fog lights, LED headlights and a leather-wrapped steering wheel.
This is in addition to its work-focused standard equipment list which includes 16-inch steel wheels and 205/65 R16 tyres with a full-size spare, plus auto-door lock when driving, rain-sensing wipers, a reversing camera and more.
The two-seater cabin, which is separated from the cargo bay by a solid bulkhead, is equipped with an electronic parking brake, two USB ports, two 12-volt sockets, a colour 4.2-inch driver’s info display and a multimedia system controlled by an 8.0-inch central touchscreen with wireless Apple CarPlay/Android Auto connectivity and smartphone dock.
In addition to its option packs, Renault also offers numerous single options including a 200kg GCM upgrade, different cargo bay sliding-door configurations, a smart digital rear view mirror and more.
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 Euro 6 emissions-compliant 1.3-litre turbocharged four-cylinder engine produces 96kW at 5000rpm and 240Nm at 1600rpm.
Its seven-speed dual-clutch automatic provides the option of sequential manual-shifting plus three drive modes comprising 'Normal', 'Eco' and 'Performance', which alter the shift calibrations to optimise engine efficiency in each setting. They are selected using a button on the dash.
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.
Renault claims average combined consumption of 6.4L/100km and the dash display was showing 7.8 when we stopped to refuel at the completion of our 254km test, of which about one third of that distance was hauling more than half a tonne of payload. We also had the annoying engine auto stop/start function switched off for the duration.
Our own figure, calculated from fuel bowser and tripmeter readings, was higher again at 8.6 which was still within the usual 2.0-3.0L/100km discrepancy between official and ‘real world’ figures.
So, based on our consumption number, you could expect a ‘real world’ driving range of around 630km from its 54-litre tank which should only be filled with premium petrol (min 95 RON).
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.
Apart from the huge and unavoidable solid-walled blind-spot over the driver’s left shoulder, the Kangoo feels more like a nippy small car than a commercial van.
The driver’s seat has no adjustments for lumbar support or base-cushion rake and the backrest angle is restricted by the bulkhead close behind it, but there’s still enough room even for tall people to find a comfortable driving position.
Its leather-rimmed wheel feels nice in your hands and the unladen ride quality is excellent, with nicely weighted and responsive steering feel, reassuringly strong braking and suspension settings that combine good handling response with supple bump absorption.
The turbocharged 1.3-litre four is a refined and willing performer, albeit with softer response below its peak torque band which is tapped at 1600rpm.
From there it happily spins its way to maximum power at 5000rpm, with the dual-clutch auto getting the best out of this engine in all drive modes, when either unladen or hauling a heavy load.
Its diminutive size and agility are well suited to zipping through heavy city traffic, squeezing into tight loading zones or negotiating narrow and crowded city lanes for delivery work.
Manual sequential-shifting allows more direct control if preferred when hauling heavy loads, or for those simply wanting a more engaging drive experience (particularly in Performance mode).
It's impressively quiet up to 80km/h in city and suburban use, but at highway speeds tyre noise becomes more intrusive (particularly on coarse bitumen surfaces) and some wind noise is evident.
The engine requires only 2000rpm to maintain 110km/h cruising speeds and the (optional) adaptive cruise control is resolute in maintaining its speed settings, even on long and steep descents.
To test its GVM rating, we forklifted 415kg into the cargo bay which with driver equalled a payload of just over half a tonne, or about 50kg under its legal limit.
The rear suspension compressed 55mm, which engaged the long cone-shaped jounce rubbers positioned inside the rear coil springs to provide a second stage of load support.
The Kangoo coped commendably with this payload, floating smoothly over bumps and with minimal effect on handling, braking and engine performance.
It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, quickly self-shifting down to fourth gear to easily reach the summit.
Engine-braking on the way down was not as robust, as you’d expect from such a small engine with more than half a tonne on its back, but still within expectations for small vans.
Our only gripes are the absence of a full-width driver’s left footrest and that the thick panel separating the bulkhead windows almost completely blocks the central mirror’s view through the LHS barn-door. You can option a smart digital mirror with rear-facing camera to resolve this issue, but that’s another $800.
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 Kangoo petrol is backed by a five year/200,000km warranty, whichever occurs first. There's also complimentary roadside assist for up to four years/120,000km, with annual renewals available after that.
Scheduled servicing is every 12 months/30,000km with capped-pricing for the first five scheduled services totalling $2385, or an average of $477 per year.