Volkswagen’s new generation T7 Transporter van has hit Australian shores, but those eager to grab a plug-in hybrid (PHEV) version will have to be patient. While the all-electric eTransporter is available now, the promised PHEV model won’t roll out until 2026 – alongside similar PHEVs for the Caddy, Multivan, and California models. This delay comes as a surprise considering its sibling, the Ford Transit Custom PHEV (upon which the T7 Transporter is based), has already been on sale in Australia since earlier this year, starting at $67,590 before on-road costs.
This timing raises questions about Volkswagen’s strategy. The recent changes to Australia’s fringe benefits tax have removed financial incentives for PHEV buyers. Volkswagen, however, emphasizes that its current priority is electric vehicles (EVs).
The company now offers two EVs in the same size and price bracket: the ID.Buzz Cargo – a commercial version of the retro-inspired ID.Buzz people mover – and the eTransporter. The difference in starting price between these two vans is less than $4,000. Despite this seemingly small gap, along with the upcoming release of four PHEVs across its van range, Volkswagen maintains that offering different powertrain options caters to individual customer preferences.
“Transporter has a loyal following… they know the size, they know the expectation, they know all the capabilities that they want – and then they can decide whether it’s electric,” explained Daniel DeGasperi, acting general manager of corporate communications for Volkswagen Australia, to CarExpert.
For those seeking an immediate alternative to combustion engines, the new T7 Transporter is available now in various configurations starting at $58,590 before on-road costs for the short-wheelbase turbo-diesel model. The range-topping eTransporter long-wheelbase boasts a starting price of $85,590 before on-road costs.
The wait for the PHEV Transporter will continue into 2026, but Volkswagen’s current lineup provides distinct choices between established diesel models and their fully electric counterparts for Australian buyers.
