New Volkswagen Golf pricing revealed

After several false starts, the new-generation 2021 Volkswagen Golf will begin arriving in Australia from around May next year priced from $29,350 plus on-road costs for the base-spec model with manual gearbox.

The Mk8 Volkswagen Golf will bring a fresh design, high-tech interior with a fully-digital cockpit concept, plenty of advanced safety equipment fitted as standard and a simplified three-model range: Golf ($29,350), Golf Life ($34,250) and Golf R Line ($37,450), all before ORCs are added.

Automatic transmission is standard on all variants except the base model, where it is available for an extra $2600.

Volkswagen is unapologetic about the higher pricing for its small hatchback – up $3560 at the entry level – and its elevated position compared to Asian rivals such as the Mazda3 (from $25,590), Toyota Corolla ($23,895), Hyundai i30 ($23,420) and Kia Cerato ($21,690).

“Previously we tried to have a lower price point to try and drive volume; it just doesn’t work anymore,” said Volkswagen Group Australia managing director Michael Bartsch.

“Until we have a free trade agreement between Australia and Europe, we’re dictated to come in at that level of pricing.

“Australia is aspiring middle class, and there’s no point pretending to be what we’re not; there’s no point competing with the Kias and Hyundais, certainly not until we’ve got a level playing field opportunity [with the FTA].”

2021 Volkswagen Golf review

All variants of the 2021 Volkswagen Golf will be able to accelerate, brake, steer and park automatically with standard fitment across the range of adaptive cruise control, lane keep assist and an automated parking system, which form part of VW’s IQ Drive system.

Volkswagen has also confirmed the fitment of blind spot assist, rear cross traffic alert, high- and low-speed autonomous emergency braking with vehicle, pedestrian and cyclist detection, and a turning assist feature designed to stop head-on crashes when turning into oncoming traffic.

Front and rear parking sensors will likewise be fitted as standard as will a driver fatigue detection system and a tyre pressure loss indicator, so drivers will know if they’ve got a puncture.

Cabin convenience features haven’t been detailed yet, but Volkswagen Australia is expected to offer its Innovision system on all models, which is described as a “fully digital driver’s display landscape” with twin LCD screens for the infotainment and instrument panels backed up by an intuitive input system.

The new set-up also reduces the number of buttons and switches in the cabin, creating a cleaner, more upmarket ambience, VW claims.

Even the gear shifter has been miniaturised to create more room up front, and the new Golf will shift gears via a conventional eight-speed automatic transmission with ‘shift-by-wire’ technology, ditching the dual-clutch auto that has been a Golf calling card for more than a decade.

2021 Volkswagen Golf GTI review

Volkswagen says the highly-anticipated 180kW Volkswagen Golf GTI hot hatch will arrive about a month after the regular models in Australia.

The muscled-up 235kW Volkswagen Golf R flagship has been delayed until 2022 to coincide with VW’s three-pronged performance car attack, alongside the new Tiguan R and T-Roc R SUVs.

The mainstream three-tiered Golf launch attack will rely exclusively on a carryover 110TSI powertrain, the 1.4-litre turbo-petrol engine continuing to pump out 110kW of power and 250Nm of torque.

Other countries are offered a more efficient and cleaner 1.5-litre turbo-petrol engine (also 110kW/250Nm) hooked up to a dual-clutch transmission.

However, these engines are not offered here because of the necessity for a petrol particulate filter that VW says doesn’t suit Australia’s high-sulphur, low-quality fuel.

Volkswagen Australia has no plans to import plug-in hybrid or diesel-powered Mk8 Golf models at this stage.

The company also says it’s still considering whether to offer the new Golf Wagon here but will not offer the new-generation Golf Alltrack.

The Volkswagen Golf is the fifth best-selling small car in Australia, behind the Toyota Corolla, Hyundai i30, Kia Cerato and Mazda3.

But the new model range and pricing structure could see its sales volume reduce.

“The pricing position is built around a lot of things,” said Bartsch.

“It’s built around the unfavourable exchange rate that we’ve had for a long time, and it’s built around the fact that we’re no longer prepared to try and subsidise the car to offset the reality that we’re on an unlevel playing field in Australia.

“We’re no longer fixated on a lower entry point. I think we have to recognise that brand position for Volkswagen.”

How much does the 2021 Volkswagen Golf cost?
Golf (m) – $29,350
Golf (a) – $31,950
Golf Life (a) – $34,250
Golf R-Line (a) – $37,450

*Prices exclude on-road costs