Volkswagen Australia is yet to commit to electrifying its popular Golf hatchback, despite mild-hybrid and plug-in hybrid options being available in overseas markets.
Speaking with CarExpert at the launch of the new Mk8.5 Golf range, head of product for Volkswagen Australia – Arjun Nidigallu – said arguing the business case with the company’s global parent remains the biggest hurdle.
“We continually investigate alternative powertrains as a general thing, not just for [the] Golf but for every model wherever there’s an opportunity,” Mr Nidigallu said.
“The challenges tend to be around creating a business case for it, particularly in segments that are smaller in volume.”
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“We continue to investigate these things, but for the current Golf if we look at what the customers are after, it’s very, very clear that they want the quality and practicality aspects of it in the lower end, and of course they want the performance and acceleration in the GTI and R,” Mr Nidigallu continued.
“We haven’t seen a clear marker in our data sets for hybridisation as a priority for [Golf] customers. Yes it is on the list, but it’s not top of the list at the moment for this segment.
“There are other segments – [like] medium SUV – where electrification is very much desired, and that’s why the ID.4 and ID.5 were such a big priority for us, and it’s the first step we’re taking in that direction.
“But in the small segment, while it is a general interest for customers, it’s not on top of the list for Golf buyers at the moment.”
Despite VW Australia being unable to get the business case over the line with its global parent, other brands in the VW Group stable Down Under have managed to make it work – the related Audi A3 runs the Group’s latest 1.5 eTSI engine with 48V mild-hybrid (MHEV) technology, soon to be joined by the also-related Cupra Leon and Skoda Octavia.
Further, the non-MHEV 1.5 TSI – which is already newer and more efficient than the 1.4 TSI – is offered in a raft of products in Australia and around the world. The Skoda Scala and Kamiq, as well as the Audi A1 and Q2 also feature this powertrain.
Then there are plug-in hybrids (PHEVs), which VW brands as eHybrids. In the Golf alone there are two different variations offered abroad: a 150kW in the standard Golf and a 200kW tune in the GTE, with both quoting over 130km of WLTP-certified electric driving range in their latest forms.
PHEVs have been a struggle for all of the VW Group in Australia, particularly in the smaller segments, though Cupra offers the Leon and Formentor with plug-in tech. These use the older 1.4-litre PHEV powertrain with less range – in the 50-60km realm.
Volkswagen Passenger Vehicles in Australia has made a number of attempts to bring the Golf PHEV Down Under, starting with the Mk7 GTE last decade before backflipping due to high global demand, and more recently the Mk8.5 GTE which was likewise abandoned.
Skoda Australia recently confirmed it’s planning to bring the mild-hybrid 1.5 eTSI powertrain to the Octavia before the end of this year as a running change to the lineup. Currently, the Skoda runs the same 1.4 TSI and eight-speed auto transmission as the Golf.
Likewise the Cupra Leon and Formentor will add the 1.5 eTSI with their incoming facelifts, joined by the larger Terramar SUV – which will get MHEV and PHEV options unlike the related VW Tiguan.
Despite VW’s stance on demand for electrified small vehicles, the Golf is being outpaced by rivals with varying degrees of electrification on the Australian sales charts.
The Hyundai i30 and Toyota Corolla currently outsell the Golf by quite some margin, with the Hyundai offering 48V mild-hybrid and full-hybrid options across its i30 Hatch and Sedan respectively, while the entire Corolla range is hybrid-only as of mid-2024.
Further, the all-electric MG 4 hatchback is likewise beating out the Golf in year-to-date volume (1335 v 853) as of March 31.
Elsewhere in the small passenger segment, the Mazda 3 has previously offered 24V mild-hybrid tech, though has reverted to ICE-only; and the Honda Civic has gone hybrid-only Down Under.
Stay tuned to CarExpert for our Australian launch drive review of the new Mk8.5 Volkswagen Golf and Golf GTI on May 8.
Are you holding out for an electrified VW Golf? Tell us in the comments below!
