New VW Tiguan to be top-six seller

Volkswagen has forecast at least 10,000 annual sales of its second-generation Tiguan, which would make it a top-six player in Australia's biggest SUV segment.

Speaking at this week's launch of the larger new Tiguan, which grows enough in size to now be officially classified as a mid-size SUV, the German car-maker's local MD said he expects the new model to match its predecessor's market share in the smaller SUV segment.

"In terms of sales most of our competitors are doing around 10,000 units per year and we're capable of at least that," said Michael Bartsch.

Launched here in 2008, the original Tiguan's annual sales peaked at 6871 in 2012, achieving a 12 per cent share of the mainstream small SUV segment, which totalled less than 60,000 sales.

Last year that figure ballooned to almost 100,000, while the mainstream medium SUV segment also nearly doubled, to almost 130,000 units, thanks to popular models like the Mazda CX-5, which found more than 25,000 homes in 2015, as well as the evergreen Toyota RAV4 (18,435), Nissan X-TRAIL (17,971), Subaru Forester (12,029) and Mitsubishi Outlander, which also cracked 10,000 registrations last year.

Based on 2015 figures, if it achieves its sales target the new Tiguan would become more popular than the Mitsubishi Outlander, Honda CR-V, Kia Sportage, Jeep Cherokee and Ford Kuga.

While the old Tiguan, which notched up more than 45,000 sales Down Under, will be replaced in the small SUV segment by two all-new compact VWs, the mid-size SUV segment has grown almost 16 per cent so far this year.

Much of that growth has come from luxury ($60,000-plus) SUV models, sales of which up more than 35 per cent in 2016, and Volkswagen Group Australia expects the bigger MkII Tiguan to also attract buyers of premium compact SUVs like the Audi Q3, BMW X1 and Mercedes-Benz GLC.

Bartsch said that, as well as being the company's second best seller after the Golf, the new Tiguan would set a new benchmark for medium SUVs.

He said that, in line with the Volkswagen brand, the new Tiguan would represent affordable luxury, thanks to solid level of standard convenience and safety equipment, the largest cargo capacity in its class, and more efficient turbocharged four-cylinder petrol and diesel engines.

The new also promises a vastly improving driving experiece, thanks to the Golf's latest MQB platform that increases rigidity while reducing weight by an average of more than 50kg.

“This is an all-new car, and more importantly it is a step up, in so many ways, it is redefining this segment of the SUV,” said Bartsch. “We’ve moved the Tiguan up from the small SUV segment to the medium SUV segment. This car will go up in terms of the competitive set against the traditional contenders like the Mazda CX-5 and Hyundai Tucson.

“But more importantly, this car will give those luxury brands that have SUVs priced higher than this a little bit of a fright. If you look at this car against the (Mercedes-Benz) GLC or (BMW) X1, you’ll see a market that will respond in terms of quality, engineering and styling.”

Bartsch added the new Tiguan -- despite a higher ($31,990) starting price than its predecessor and its most direct rivals -- would appeal to to both traditional mainstream SUV buyers and premium luxury SUV customers, because of its value and German enginering and manufacture.

“The big advantage is we’re going to have a price that will attract the aspiring middle class. We are delivering premium for the people, at affordable prices, and product quality that is head-to-head with the luxury brands.

“It is very much a lighthouse of Volkswagen of the next couple of years, and an indication of how we will be positioning the brand moving forward. I’ve been very open that the challenge for us is that we make sure we continue to deliver a service and buying experience that is in keeping with the high standard of our vehicles.

“The market will respond very well to a German-conceived, German-designed, German-engineered and German-manufactured car. We are absolutely alone in that segment. A lot of brands are offering SUVs that are described as German made, German conceived, German designed, but they are certainly not made in Germany. And I think that is very important to us.

“Our battleground is looking up and not looking back. This is not a car that we are going out in the market and go head-to-head and have price position wars with the Asian brands, with the brands from Japan or Korea; this is not a car either that we are going to compete with the X1 or GLC; it is a car that will sit very clearly in its own territory, between the Asian and luxury brands – this is where Volkswagen is going to sit and where the Tiguan is going to sit."

Bartsch said increased sales of the Tiguan would -- like Volkswagen as a whole -- be backed by improved customer satisfaction, an area that's becoming the new battleground for mainstream brands after proving so successful for companies like Mazda Australia.

"It is important to me not to be doing absolute [sales] numbers, but rather that this underlines the brand position for Volkswagen, drives customer satisfaction and sets the standards to which the brand will move forward in Australia.

“The highest accolade that I think we can have when we launch this car and move forward is that we have the highest satisfaction ratings in the business.”

We covered the new Tiguan's full Australian specifications list in June, before local pricing was announced in July.

Head across to our Reviews section to read our first Australian drive report of Volkswagen's crucial new Tiguan.