Compact vans might not occupy a large niche in the light commercial market, but they are ubiquitous and particularly well-suited to light-duty urban chores, being easily wielded in city streets, economical, capacious and always European. The three light vans available in Australia include Renault’s Kangoo, Peugeot’s Partner and the top-selling Volkswagen Caddy. The VW is available in various guises, starting with a manual-transmission, five-door diesel van and progressing through a mix of short- and long-wheelbase turbo-diesel and turbo-petrol vans, topped by the California people-mover. Meanwhile, the short-wheelbase auto-transmission TDI320 diesel van reviewed here is an unmitigated mid-range workhorse.
Pricing for the fifth-gen Caddy begins at $42,990 plus on-road costs (ORCs) for the entry-level TDI280 short-wheelbase four-door van and ranges through to the 2.0-litre turbo-petrol long-wheelbase five-seat, five-door California flagship at $64,090. Yes, the Caddy, with 15 variants to choose from, is quite prolific.
The Renault Kangoo and Peugeot Partner competition is less diverse. The two-model Renault Kangoo range is differentiated by single-spec short- and long-wheelbase vans powered by a 1.3-litre turbo-petrol four-cylinder engine priced at $42,990 and $44,990 plus ORCs respectively. The four-model Peugeot Partner range meanwhile comprises Premium and Pro trim levels divided, as with the Renault, into short- and long-wheelbase versions powered by a three-cylinder 1.2-litre turbo-petrol engine. Partner prices span $39,390 to $45,990 plus ORCs.
Our review Volkswagen Caddy van is tagged at $45,990 plus ORCs and comes with Volkswagen’s dual-clutch auto gearbox driving the front wheels through the corporate 90kW/320Nm TDI320 2.0-litre turbo-diesel.
Although it has assumed an increasingly car-like persona over the years since its local launch in 2005, the VW Caddy TDI320 van nevertheless remains essentially basic. Right down to its rubber floors and unyielding elbow-rests in the doors, it can’t quite avoid being a bit harsh and hard-edged when it comes to passenger comfort.
At this level you neither expect, nor get, powered seats. Yes, they are covered in what looks like a durable cloth, and both driver and passenger get manual height-adjustment, but the cabin trim is sturdy vinyl throughout.
Mind you, this workhorse van does get power windows and a premium-look, leather-rimmed, flat-bottom multi-function steering wheel, which admittedly help the cabin ambience. And the Caddy’s electric park brake, toggle-style shifter for the seven-speed DSG gearbox – and the power windows – are reminders that this is the 2020s, not the 1960s.
There’s some attempt at imbuing a car-like feel via large analogue dials for the tachometer and speedo – with a digital information display between – and an awkward, sliding-finger operation of the semi-climate-control system. But the reliance on touch-screen technology for many functions is more than a bit daunting as you face the highly reflective dashboard.
Above the upper windscreen frame, large storage slots make handy receptacles for the papers, maps and other paraphernalia that generally accumulates in a working van.
Short-wheelbase Caddys get 16-inch steel wheels with (seemingly universal in this segment) 205/60 tyres, while the cargo area is accessed by a single sliding door on the left side and a high and wide barn-door arrangement at the rear.
After-care basically equates with expectations: the Volkswagen Caddy van is covered by a five-year, unlimited-kilometre warranty with 12 months of roadside assist, while servicing is scheduled at 12-month or 15,000km intervals.
A fixed-price servicing plan quotes $562 for three intermediate services and $792 and $877 for two more-extensive services over five years or 60 months, the total cost adding up to $3355. Three- and five-year prepaid servicing plans are available to bring extra savings.
The Caddy Cargo was given a five-star ANCAP rating in 2021, which puts it ahead of the four-star Peugeot Partner and the un-rated Renault Kangoo.
With seven airbags including a front-centre bag for protecting the two front-seat passengers from each other in a side-on collision, low-speed autonomous emergency braking, vulnerable road-user protection, junction assist, lane support with lane-keep assist and lane-departure warning, driver attention detection and post-collision braking, the small van is something of a showcase for the Volkswagen brand’s model-wide safety status.
Not really a surprise in a relatively low-spec commercial van, the review Volkswagen Caddy lacked adaptive cruise control. And although its single rear parking camera was welcome, a brace of cameras providing 360-degree viewing would have been a lot more helpful.
The Caddy’s lack of embedded GPS is compensated by the provision of (wired) Android Auto/Apple CarPlay connectivity. There are two USB-C points nestled against the phone-charge pad – the latter a nice touch not seen in either of the small VW van’s competitors.
The sound system is a basic four-speaker arrangement that is given a reasonable acoustic backdrop thanks to the fixed, sound-deadening dividing panel between the front cabin and the noisy rear cargo area.
The TDI320 Caddy is powered by a relaxed 2.0-litre four-cylinder turbo-diesel engine that produces just 90kW but deals out a solid 320Nm of torque between 1500rpm and 2500rpm. This drives – with commendable gusto – the front wheels through VW’s seven-speed dual-clutch transmission.
It’s a refined and surprisingly quiet turbo-diesel, almost petrol-like, and with its strong torque has no trouble hefting the short-wheelbase Caddy van’s 1542kg kerb weight, with the promise of plenty to spare when loaded to its 708kg maximum payload.
For efficiency and tailpipe cleanliness, the Volkswagen Caddy TDI320 is off to a good start when compared with its small-capacity turbo-petrol rivals. Its quoted 4.9L/100km fuel consumption is comfortably ahead of the 6.2L/100km and 6.3L/100km claimed for the Renault and Peugeot.
Its CO2 emissions are pretty low too at 129g/km; quite a bit better than the Peugeot and Renault which respectively quote 142g/km and 141g/km.
Unladen, our review TDI320 Caddy averaged an impressive 5.5L/100km over a week of mixed urban and freeway driving.
From a driver’s perspective, the Caddy’s only real shortcoming – and this is not exclusive to the Volkswagen – is vision. Reversing through narrow laneways and other tight situations can be fraught. Good-size internal and external mirrors do their best but can only do so much. As already noted, multi-camera 360-degree viewing should be standard on commercial vans where steel side panels outnumber glass windows.
Partly because of its compact size, but also due to other factors such as noise/vibration/harshness levels, ride quality and handling acuity, the Volkswagen Caddy van approaches the comfort and easy driving of a small to mid-size car. It’s quite agile on secondary roads, and cruisy and comfortable on the freeway.
With the help of the windowed internal screen between the cabin and load areas, cabin noise is well attenuated, while the steering is light but informative. The engine – especially for a four-cylinder diesel – is a gem, accelerating with genuine zing, while the seven-speed dual-clutch auto gearbox extracts the most out of it.
But not quite all. While the auto mostly shifted in an admirably smooth and crisp manner, our review Caddy was occasionally guilty of emitting the odd uncomfortable thump from within the driveline, usually when reversing uphill at low speeds.
The front cabin is isolated from the rear cargo area via the already-mentioned steel panel with its net-covered glass window to protect front passengers from the dangers of wayward cargo.
The two seats are comfortable and supportive but lack armrest comfort. Up to the B-pillar, vision to the front and sides of the Caddy van is acceptable.
Commercial vans are essentially all about what they can or can’t carry and compared to its two competitors the Caddy measures up competitively in terms of payload, load areas and access. Comparing the base statistics of all three short-wheelbase rivals reveals that the Caddy measures longer overall but its 3100-litre cargo area is down on the 3300-litre Peugeot and Renault, as is its 1797mm load length (1817mm for the Peugeot and 1806mm for the Renault).
The short-wheelbase Caddy van’s load area will take an 1165mm-square Australian pallet or an 800mm by 1200mm Euro pallet when loaded from the back, but not from the 695mm wide, left-side sliding door.
The Caddy 2.0 TDI320 SWB is rated to tow a braked trailer weighing up to 1500kg – equal to the Renault Kangoo and 600kg better than the Peugeot Partner.
The short-wheelbase Caddy 2.0 TDI320 is a punchy, economical, dynamically competent and comfortable small van with the added benefit over its two rivals of a full five-star safety rating.
Its only real deficit is that, exacerbated by its model diversity, it tends towards being the pricier option when compared with its similarly capable, petrol-engined rivals, the Peugeot Partner and Renault Kangoo.
2025 Volkswagen Caddy 2.0 TDI320 SWB at a glance:
Price: $45,990 (plus on-road costs)
Available: Now
Engine: 2.0-litre four-cylinder turbo-diesel
Output: 90kW/320Nm
Transmission: Seven-speed dual-clutch automatic
Fuel: 4.9L/100km
CO2: 129g/km
Safety rating: Five-star (ANCAP Year 2021)