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 third-generation Volkswagen Tiguan is likely to be the most important new vehicle Volkswagen launches in 2025.
The popular mid-sizer has proven to have impressive staying power for the brand, with the outgoing version still impressing buyers despite being nearly a decade old.
What does this ground-up new version change? Does it have what it takes to maintain the nameplate’s reputation in one of Australia’s most hotly contested market segments? And what are some surprises this time around?
We went to its local launch to 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.
The new Tiguan is as confident as ever in its identity, even in such a crowded mid-size SUV space where there are so many models worthy of your attention.
No matter which version you choose, this is still the mid-size SUV for a driving enthusiast who doesn’t quite have premium dollars to spend.
While it may not quite expand its appeal as much as the brand hopes precluding a hybrid variant, those who are choosing this as their family hauler for the right reasons won’t be disappointed.
Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.
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 new Tiguan is a bit of a mind-bender. Its new design seems to make it feel smaller than the outgoing vehicle, despite it being both slightly wider and longer.
This, I have decided, is because the design creates a visual effect, where the upper curvier parts seem to shrink it down, and the additional length makes it seem narrower than the more boxy visage of the previous model. Also, it’s 20mm shorter than the previous design, which we’re told combines with the new bodywork to make for a 15 per cent drag reduction.
Either way, it’s nice not to see a mid-size SUV not continually engage in an arms race to get bigger and bigger. Volkswagen will also introduce the dedicated seven-seat Tayron later in 2025. It’s a half-size up and replaces the outgoing Tiguan Allspace, and this time it features a much more distinct design from its Tiguan sibling.
The third-generation Tiguan not only embraces a more curvy design aesthetic than its predecessor, but it also features many more contemporary design elements. The headlights and curvy accents over the wheelarches feel like they more closely associate this SUV with the new ID.4 and ID.5 EVs, while the light bar across the front on some grades combines with the new light bar across the rear to give it a trendy silhouette. It tops things off with the ‘Tiguan’ letterwork on the tailgate, and, as usual, a sporty spoiler fitting giving the rear hatch a bit of depth.
As usual, VW’s array of gloss-black, chrome or plastic garnishes on the outside, depending on grade, offer a subtle and tasteful finish to the exterior appearance.
The inside is revolution rather than evolution, now heavily screen-centri, and featuring an array of lighting features like many of its rivals.
The screens look the part and have fast and mostly straightforward-to-navigate software, while the seat designs are a real highlight, being both aesthetically pleasing and nice to the touch in all grades.
The ambient lighting features add a sense of presence to the cabin, and unlike the outgoing car, the new one feels a bit more driver-centric thanks to the design of the dash and screens effectively pointing their way down the road from the driver’s point of view.
It does away with the sparse feeling of the previous car, elevating things a notch with an increase of nice materials throughout.
While some may find the abundance of gloss-black finishes a bit harder to maintain, it’s hard not to feel like this new Tiguan is a major generational jump from the previous one. Mission accomplished, VW.
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.
Like the previous model, VW hasn’t forgotten its pragmatic touches for the interior, despite its increase in complexity and appointments.
Finding a driving position was easy for me at 182cm tall, with both a healthy adjustment range for the seats and steering wheel. The digital instrument cluster remains one of the best on the market in terms of usability and customisation, while the multi-function steering wheel commits to buttons rather than the widely-disliked haptic feedback panels, which have appeared on various other VW models.
Unfortunately, this doesn’t entirely extend to switchgear for key functions, with the climate control exclusively controlled via touch sliders, a touchscreen menu or the Tiguan’s new voice control suite, none of which are as intuitive as just having a physical dial for temperature and fan speed and buttons for recirculate, auto and on-off.
However, the Tiguan does have a central dial on the console, which can cycle through volume control, drive modes or ambient lighting modes when pressed. A welcome addition.
Moving the shift stalk to the steering column, like the ID.4 and ID.5, has also allowed additional space for the centre console area, which is now quite versatile. It includes a variable-height armrest console box with either dividers or a dual-bottle-holder fitting, which can be interchanged between the two areas, while the dual-charging bays up front have a rubberised cover, which can be pulled down as to not waste the storage space. This has the additional feature of making the cooling system for the wireless charging phones more effective.
There are two large bottle holders and pockets in each door, which have a carpeted finish to reduce vibration, and there’s also a passenger glovebox.
The rear seat offers a healthy amount of space behind my own driving position. I had leagues of knee room and a healthy amount of airspace above me, however the presence of a tall raise for the transmission tunnel eats into the amount of room a centre passenger would have for their feet.
The comfortable seats continue and are on rails if you need to increase the amount of room in the boot, or simply want a more aggressive recline. When it comes to storage, there are bottle holders in each door, a drop-down armrest with dual bottle holders, dual USB-C outlets on the back of the console, as well as dual air vents with a touch control panel for the independent third climate zone. The only thing it seems to be missing is built-in window shades, which are offered on some Skodas and the now-discontinued Passat (RIP).
The boot helpfully features a powered tailgate on all grades, and measures in at 652 litres with the second row up, or 1650L with the seats down. Numbers can be deceptive, but it does seem large for the class, and there’s a space-saver spare wheel under the floor.
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.
Volkswagen is attempting to broaden the appeal of the Tiguan this time around. As such, it hasn’t jacked prices up massively like some recent new-generation versions of rivals, despite a comprehensive cabin tech overhaul and big lift in standard equipment.
As a result, the range is vast, with six variants covering a wide price spectrum and, as the brand says (or hopes), a wide range of potential buyers.
Kicking it off is the base model 110TSI Life, which, at $44,990 plus-road costs, is only $1000 more than the outgoing version. It sports a carryover 1.4-litre turbocharged four-cylinder engine, although it has a new version of VW’s seven-speed wet dual-clutch automatic sending power to the front wheels, replacing the derided dry dual-clutch that marred the base version of the old car.
Standard equipment on the base car is high, including 19-inch alloys, a full array of LED lights both for the headlight clusters and rears, it also includes a 12.9-inch multimedia touchscreen with wireless Apple CarPlay and Android Auto, a 10.25-inch digital instrument cluster with the brand’s signature digital cockpit software, tri-zone climate control, ‘comfort’ cloth seats (said to be benchmarked against the best in-class) with manual adjustments, a leather-trimmed multifunction steering wheel, dual wireless phone chargers, ambient dashboard lighting and even an electric tailgate.
The mid-spec Elegance grade can be chosen with either the 110TSI engine in front-wheel drive, or the new 150TSI 2.0-litre engine in all-wheel drive, priced at $50,690 and $60,690 respectively. It increases the equipment to include chrome styling on the exterior with alternate 19-inch wheel designs, rear privacy glass, improved LED headlights with a lit-up centre strip and dynamic cornering functions, leather interior trim, power adjustments with heating, ventilation, and message functions for the front two seats, and a heated steering wheel.
Alternatively, there is the 150TSI R-Line which starts at $55,690, representing a $4600 price reduction compared to the outgoing 162TSI R-Line. It is also all-wheel drive only and features an R-Line styling pack inside and outside, with sporty but manually adjusted cloth bucket seats featuring integrated headrests up front (which miss out on the heating and ventilation of the Elegance grade), black headlining, an R-line steering wheel with additional contouring, 19-inch alloys in a sportier design, a wider wheel and tyre package for enhanced grip, and the VW’s signature progressive steering tune.
Both 150TSI cars also add adaptive chassis control and hill descent control as standard, with an additional off-road and snow driving mode, while the Elegance specifically scores a larger 15-inch multimedia screen.
Finally, topping out the range is the new 195TSI R-Line priced at a massive $70,490. Not only does this grade score its own 195TSI engine sourced from the Golf GTI, but it also adds everything available in the range, swapping out the 150TSI R-Line’s cloth seats for the leather-trimmed, heated, cooled and massaging ones otherwise only available on the Elegance, along with the larger 15-inch screen, sporty steering wheel and R-Line appearance package inside and out, along with its own set of 20-inch alloy wheels.
Option packs include a black styling pack for the R-Line at $1500, a panoramic sunroof available on the Elegance and R-Line grades at $2100, and the Sound and Vision package, which adds premium audio and the larger 15-inch multimedia screen to the 110TSI variants for $2700.
This makes the Tiguan range span from surprisingly good value at the low end, to a real enthusiast-only proposition at the pinnacle, with VW even pitching the 195TSI R-Line at the lower-end BMW X3 and Mercedes-Benz GLC buyers.
In reality many of its mainstream rivals should include options like the dominant Toyota RAV4 ($42,260 - $58,360), Subaru Forester ($38,690 - $50,140), Nissan X-Trail ($38,025 - $59,265), Hyundai Tucson ($39,100 - $61,100) and Kia Sportage ($32,995 - $55,420).
The surprise, some will note, is all of the Tiguan’s rivals have at least one hybrid variant, where VW has chosen to stick with combustion only for the time being for its new-generation mid-sizer.
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 three engine options in the Tiguan range, and it is notable none are even mild hybrids (MHEVs) in 2025.
The base engine present in 110TSI variants is even a carryover 1.4-litre four-cylinder turbocharged petrol engine, providing 110kW/250Nm to the front wheels. The big news for these base cars is the dry-clutch DCT has been swapped out for the better-performing wet-clutch version, which also has various improvements made to it for this iteration. Notably, VW has stripped-out the stop-start system with this engine and transmission combination.
The brand says it opted not to use the more recent 1.5-litre MHEV version of this engine as it simply didn’t need it to meet Australia’s new emissions standards and it would have added a prohibitive amount to the cost of entry-level variants to justify its inclusion in the range.
Next up is the new 150TSI engine. It is a 2.0-litre turbocharged four-cylinder unit, which replaces both the 132TSI and 162TSI engines from the previous-generation model. It provides 150kW/320Nm and drives all four wheels via the same seven-speed dual-clutch automatic. This engine also reintroduces stop-start.
At the top of the range, solely available on the R-Line, is the 195TSI engine. VW says this offers buyers of the previous Tiguan R somewhere to go, but also an option for those who wanted more than the previous 162TSI R-Line offered. The 2.0-litre four-cylinder turbocharged 195TSI engine is sourced from the Golf GTI and produces 195kW/400Nm, driving all four wheels via the same seven-speed dual-clutch. It reduces the 0-100km/h sprint time from 7.1 seconds to 5.9 seconds.
It is a shame in the current environment VW hasn’t chosen to make a splash with the 1.5-litre plug-in hybrid (PHEV) variant, which is available overseas. This Tiguan features a 25kWh battery paired to the 110kW engine to make for an estimated 100km electric-only driving range. It even features both 11kW AC charging and 50kW DC charging for convenient top-ups.
If you want it, tell your dealer. VW tells us they’re working on a business case for the PHEV in the background, but if you want electric driving for now, it’s pointing current customers to the ID.4 (from $59,990 before on-roads).
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.
Efficiency is remarkably even across the Tiguan range, with the new engines and updated transmission helping to make things reasonably straightforward.
The base 110TSI versions have an official/combined fuel consumption of 7.6L/100km, as do the 150TSI versions thar benefit from the stop/start system but have the added heft of all-wheel drive.
The top-of-the-range 195TSI R-Line, meanwhile, is said to consume 8.5L/100km. All versions require 95RON mid-shelf unleaded. And for those who care, the 110TSI and 150TSI produce 173g/km of CO2, while the 195TSI produces 194g/km.
Interestingly, the 110TSI variants have a 55-litre fuel tank, while the 150TSI and 195TSI have a 58-litre fuel tank.
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.
The Tiguan range has some significant upgrades from behind the wheel this time around, but there are a handful of areas where I was surprised to find it didn’t quite live up to expectations.
Firstly, the seating position and driver-centric cabin design make the Tiguan feel like more of a driver’s car than ever before. The bucket-style seats and the high beltline combine to make the seating position feel like more of a hatchback than an SUV. Yet visibility out of the cabin is healthy thanks to large windows and mirrors.
As you set off, the Tiguan feels smoother through its drivetrain than its predecessor, thanks to the new dual-clutch automatic being sandpapered when it comes to its initial engagement and shift-mapping. Even the base 110TSI, which can sometimes struggle for initial torque thanks to a dollop of turbo-lag, has a decent roll-on, and with no stop-start system this time, it’s much more friendly when hopping on the accelerator from a standstill.
The steering tune is great in all grades, helping to make this new Tiguan feel light and reactive, despite its slightly expanded dimensions. This lightness is a trait which shines through on this new version, making it feel much less pedestrian than almost all of its rivals.
On the base variant, this can be to its detriment at times, with the 110TSI engine occasionally overcoming the grip of the front tyres when a lot is asked of it, however all-wheel-drive versions are much more confident in their footing, not only delivering power in a more linear fashion, but also putting it to the ground more smoothly.
R-Line variants, with wider and more expensive tyres, are reactive, grippy, and simply outstanding to drive in this mid-size segment, with the 195TSI bringing a strong additional lump of torque and a throatier engine note.
Indeed, this version of the Tiguan leans into the nameplate’s best traits and solidifies its position as the driver’s option in the segment. The 150TSI R-Line in particular stood out as raucous amounts of fun for a mid-sizer for a fair price, as it could be driven significantly harder than the more powerful 195TSI.
However, this new Tiguan was also not without some disappointments. The amount of road noise in all grades was notable, and while VWs are usually known for their balanced ride quality, all Tiguan variants also featured a certain seemingly inherent firm response to sharper blemishes in the road, perhaps a cost for the otherwise superb body control.
These blemishes in driving ambiance were relatively minor in scale, but surprising to find nonetheless.
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.
Every new Tiguan gets the full array of modern active safety kit, including freeway-speed auto emergency braking with vulnerable road-user protections and intersection features, lane-keep assist, blind-spot monitoring, both rear and front cross traffic alert, a 360-degree parking camera suite, driver attention alert, traffic sign recognition, adaptive cruise control and exit warning.
It also features an emergency assist feature, and there’s a suite of nine airbags, including a centre airbag. VW is anticipating a maximum five-star ANCAP rating, although at the time we put this review together, the SUV’s score was yet to be released.
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.
Volkswagen offers the Tiguan with its usual five-year/unlimited-kilometre warranty. While this is still the prevailing standard, the warranty wars are back with more manufacturers pushing into the seven-to-10-year category.
The Tiguan requires servicing once every 12 months or 15,000km, although pricing for the service packages was yet to be revealed at the time we put this review together.