Stronger premium push for German brand in Australia
The days of price-driven product positioning are over for Volkswagen in Australia as the German auto brand looks to build its premium position in 2022 and beyond.
The sub-$20,000 Polo is almost gone, a sub-$30,000 Golf is unlikely in future and instead the company is putting its emphasis on the more profitable, well-equipped models that have been most popular with customers in recent years.
“A number of our entry variants are no longer available. That’s because we listen to our customers and entry-level is not why they’ve come to Volkswagen,” said Volkswagen Australia product marketing manager Michelle Rowney.
“This is what they want and what we’re giving them – added value with more standard equipment and fewer options.
“We’re not a $9990 brand. We are instead a brand that offers affordable performance, with highly specified cars focusing on comfort, safety and driver’s assistance technology.
“Our best-selling variants are the ones with the higher levels of specification. We have removed the least-popular models rather than ‘de-content’ cars.”
Volkswagen Australia says 2022 will be the biggest year in its history – despite semiconductor shortage-related stock issues that will linger well into next year – with nine new models including four new R cars on the launch pad.
First up is the facelifted Volkswagen Polo, which arrives in April with more tech and carryover 70kW and 85kW TSI engines in a “more premium and concise range” including a more powerful Polo GTI hot hatch.
The upgrade for Volkswagen Australia’s smallest model will be followed in May by an updated Tiguan Allspace, bringing a fresh design and specification that mirrors the facelifted Tiguan five-seat medium SUV, which also becomes available in hot R guise for the first time in April.
That means a tweaked exterior, adaptive Matrix LED headlights and the brand’s new signature full-width LED light bar up front. Volkswagen’s IQ.Drive active safety and driver assist suite (including Travel Assist) will also come fitted to every Tiguan Allspace.
Then comes a tweaked Volkswagen T-Roc, with new styling inside and out in May, including a new R performance model for the small SUV.
Regular T-Roc variants will bring new styling and equipment, along with softer and more premium cabin materials, while the first T-Roc R will become the most affordable R-car in VW’s local line-up.
Separately, the new Golf R hatch (April) and wagon (later) will be joined by the first Touraeg R – Volkswagen’s first plug-in hybrid model Down Under – from November.
Confirmation of the Volkswagen product plan for 2022 comes as a new corporate structure is implemented in Australia that combines Volkswagen passenger cars and commercials with Audi, Skoda and the upcoming Cupra brand into a single umbrella group under the new leadership of the former Audi Australia CEO, Paul Sansom.
“Volkswagen Group Australia really is taking it to the next level in 2022. I’m thrilled to be leading the Volkswagen Group in what, without doubt, is going to be the most important year of our history here in Australia,” said Sansom.
Quizzed on the customer benefit of the new group, Sansom was adamant that scale is the key.
“There are definitely benefits. The power of being one group gives us the economies of scale to have the ability to invest in the market,” he told carsales.
“Providing more value for our customers is something they want. They are telling us that.
“Of course we’ve got ambitions to grow. We are going to grow, but it will be in a sustainable way.
“That’s what the beauty of this company is. We’ve got something for everyone.”
The downside is that while standard equipment levels will go up, so too will base prices for the upgraded MY22 Polo, T-Roc and Allspace.
Local pricing and full specifications for the updated models is yet to be revealed, but we expect similar price hikes to those seen on the new Mk8 Golf that arrived mid-2021, when the admission priced increased by more than $3000 compared to the outgoing Golf.
There will also be fewer options and packages to choose from, as the German brand says its cars will come equipped with as standard with safety gear and luxury packs previously offered as options.
What’s coming from Volkswagen in 2022:Tiguan R – AprilGolf R hatch – AprilPolo facelift and GTI – AprilGolf R Wagon – May TBCTiguan Allspace facelift – MayT-Roc facelift and R – August
Touareg R – November
Keyword: No more cheap Volkswagens