No more cheap Volkswagens: Sub-$20k Polo and sub-$30K Golf axed

Australians will no longer be able to buy a Volkswagen for less than $20,000 in 2022, after the German brand announced it will increase pricing and specification for its updated Polo range.

The Polo city car range will continue to start with a 70TSI manual model when it arrives in April 2022, but it will cost more than its current $19,290 RRP.

Volkswagen Australia says more detail will be provided for the facelifted Polo range nearer its launch. Wheels believes additional extra standard features will include VW’s iQ Drive driver-aid suite found on other VWs – such as the Golf and Passat.

iQ Drive includes the partial autonomous-drive travel assist, which can control steering as well as braking and acceleration when requested by the driver. The system ties in with adaptive cruise control that is currently part of an option pack for the Polo.

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A camera-based speed-limit sign reading system and lane assist also form part of the iQ Drive system that is an option on the updated Polo already released in Europe.

The Polo range will continue to comprise 70TSI, 85TSI and GTI trim grades, and maintain the availability of a six-speed manual gearbox for the 70TSI and 85TSI variants.

VW Australia says that while the Polo remains an important model as an entry to the brand, it is simply responding to buyer trends and market forces such as the semiconductor shortage.

“We’re responding to what we’ve always seen from our customers,” said VW Australia’s product manager for passenger vehicles, Todd Ford. “And traditionally more so than competitors, we’ve had that rich [sales] mix of Life, Comfortline and Highline [higher trim grades], even putting aside performance models.

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“So, we’re fully embracing [these higher grades]. We did have a Trendline or entry model and look to achieve a particular price point under an older philosophy, I guess to attract more customers.

“But our customers want more than a Trendline [base specification], even though they were rated highly by the media.”

The $29,550 base Golf manual is also disappearing for MY22 production as VW Australia focuses on the much more popular variants of its famous hatchback.

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“Customers are talking with what they buy, and Life and R-Line [grades] are proving extremely popular in the core range,” said Ford. “In the face of semiconductor and other production shortages, we’ve taken the move to temporarily remove the least popular model rather than de-content the car.

“So, we have taken the decision to do without the base Golf manual for model-year ’22 production, but at this stage the plan is to bring it back for MY23 production.”

VW Australia said the average transaction price of a Golf has long been north of $30,000.