Volkswagen says more plug-in hybrids are on cards for Australia

Volkswagen is readying more plug-in hybrid vehicles for Australia, having just launched its first PHEV locally with the Touareg R.

A confluence of forces have enabled VW Australia to bring a stronger case to the table for electrified powertrains, with the Federal Government’s New Vehicle Efficiency Standard (NVES) given the local arm more reach when it comes to offering a mix of EV and PHEV models.

“It’s probably no surprise that it could be Golf and Tiguan [as next PHEV variants], and then potentially another player who is coming into the family that we’re not going to be talking about today,” said Ralph Beckmann, general manager of marketing and product for VW Australia’s passenger vehicles, at the launch of the VW Touareg R.

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“It’s an opportunity now to open these conversations again,” said Mr Beckmann.

“I think there is definitely room for it in the market. We saw it in the ‘Register Your Interest’ numbers as well [for Touareg R],” he said, referring to the 2000 customer inquiries on the range-topping PHEV, which is a $129,990 plus on-roads proposition.

“The plug-in hybrid seems to have an important role to play in the market as well. So we’d love to offer it beyond the pure electric product in the other ranges, as well.”

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There’s a question of a sweet-spot for timing when it comes to plug-in hybrids, with current Fringe Benefits Tax (FBT) exemptions meaning that PHEV customers could save tens of thousands of dollars in tax on a novated lease for such a car.

But that program under the national Electric Car Discount scheme is due to end on 30th March 2025, meaning the brand would need to push hard to get stock into market to meet the deadline.

Sister brand Cupra is doing exactly that with the VZe plug-in hybrid versions of the Formentor SUV and Leon hatchback.

However, Mr Beckmann suggested that won’t be doable for the future PHEVs the brand plans to roll out, leaving an open question for whether that demand will continue, as many buyers are arguably choosing a PHEV simply because it makes a strong financial case under that legislation.

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“From a timing point of view, I don’t think so,” said Mr Beckmann. “To be honest, you wouldn’t be bringing it in ‘on the fly’, it would make sense with a new model change.

“So for the outgoing model Tiguan, we wouldn’t be able to get a PHEV anymore. So it would be a potential addition for the Tiguan 3 [third generation] range,” he said, and that new-gen Tiguan isn’t due here until around March 2025.

Daniel DeGasperi, VW Australia product and PR communications manager, said the business has more potential to secure a range of new-energy options now because of NVES.

“There are a lot of calculations going on at the moment, and this is one of the benefits of being part of the Volkswagen Group – and this goes for Skoda and Cupra as well – is that we have access to such a diverse range of products,” he said.

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“[We’re] moving out of quite a limited volume pool [of production for markets that don’t have an emissions scheme] of EV or PHEV products; the NVES unlocks potential extra production, not just for ID.4 [an electric SUV arriving later this year], but it moves us into a different conversation.

“That’s consistent with what Volkswagen has been saying for many years, we need an emissions regulation system to compel our factories to put as into that consideration set and that will hopefully unlock a lot of those production and product opportunities."

One of the candidates that is under assessment for introduction include the Golf GTE hatchback, which may arrive when the Mark 8.5 facelift touches down later this year or early in 2025.

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DeGasperi said there has “definitely been no decision on Golf GTE yet”.

The Touareg R is not necessarily your typical fuel-sipping plug-in hybrid, despite the fact it has an official combined cycle fuel consumption figure of just 3.3 litres per 100km (remember, that’s the number with a full battery and only covers the first 100km, not beyond that when you’re calling on the ICE more).

It is more of a performance hybrid, with a 250kW/450Nm petrol V6 engine teaming to a 100kW/400Nm electric motor, allowing a maximum combined output of 340kW and 700Nm – enough to propel the 2433kg family SUV from 0-100km/h in just 5.1 seconds.

Stay tuned for our review on the Touareg R on Thursday May 30.