2025 Volkswagen Caddy 2.0 TDI320 SWB Review
The Volkswagen Caddy has held a solid position in the sub-2.5-tonne van market since its debut in 2005. This review takes a look at the short-wheelbase (SWB) automatic TDI320 diesel variant.
Background
Compact vans may be a niche, but they are a practical one, particularly for urban use. They offer maneuverability, fuel efficiency, and cargo capacity, and in Australia, the market is dominated by European options. Key players include the Renault Kangoo, Peugeot Partner, and the Volkswagen Caddy. The Caddy offers various configurations, spanning manual and automatic transmissions, turbo-diesel and turbo-petrol engines, and both short- and long-wheelbase options, including the California people-mover.
Price and Variants
The fifth-generation Caddy starts at $42,990 (plus on-road costs) for the entry-level TDI280 short-wheelbase van, extending up to $64,090 for the turbo-petrol long-wheelbase California. The Caddy range boasts 15 variants. Competitors such as the Renault Kangoo and Peugeot Partner offer fewer choices. The Kangoo comes in two models, powered by a 1.3-liter turbo-petrol engine, priced from $42,990. The Peugeot Partner has four models available, with prices from $39,390.
The reviewed Volkswagen Caddy TDI320 SWB is priced at $45,990 (plus on-road costs).
Features and Equipment
While the Caddy has evolved to incorporate more car-like features since its launch, it remains fundamentally a commercial vehicle. Interior aspects like rubber flooring and the door armrests reflect its utilitarian nature, hinting at a slightly less refined passenger experience.

Though lacking powered seats, the Caddy features cloth-covered seats with manual height adjustment for both the driver and passenger. The cabin includes power windows and a leather-rimmed, flat-bottom multi-function steering wheel, enhancing the driving experience. The electric park brake, a toggle-style shifter, and power windows underscore the modern design.

Analogue dials for the tachometer and speedometer, a digital information display, and an awkward semi-climate-control system add to the experience. The dashboard, however, is dominated by touchscreen technology. Storage slots above the windscreen are convenient for storing documents. The short-wheelbase models feature 16-inch steel wheels with 205/60 tyres. Cargo access is facilitated by a single sliding door on the left and rear barn doors. The Volkswagen Caddy is covered by a five-year, unlimited-kilometre warranty, with 12 months of roadside assistance. Servicing is scheduled at 12-month or 15,000km intervals, and a fixed-price servicing plan is available to further reduce costs.
Safety
The Caddy Cargo achieved a five-star ANCAP rating in 2021, surpassing the Peugeot Partner (four stars) and the unrated Renault Kangoo.

The van is equipped with seven airbags, including a front-centre airbag. Safety features include low-speed autonomous emergency braking, vulnerable road-user protection, junction assist, lane support, driver attention detection, and post-collision braking.
Technology
While it lacks built-in GPS, the Caddy offers wired Android Auto/Apple CarPlay connectivity, along with two USB-C points. The sound system features a basic four-speaker setup, which is adequate due to the sound-deadening panel that divides the cabin and the cargo area.

Powertrain
The TDI320 model is powered by a 2.0-liter four-cylinder turbo-diesel engine, generating 90kW and 320Nm of torque between 1500rpm and 2500rpm. This powers the front wheels through a seven-speed dual-clutch transmission.
The engine is refined and surprisingly quiet, with strong torque, easily managing the Caddy’s 1542kg kerb weight and offering ample capacity for its 708kg maximum payload.

Fuel Efficiency
The Volkswagen Caddy TDI320 stands out among its competitors in fuel efficiency and tailpipe cleanliness. It boasts a claimed fuel consumption of 4.9L/100km, significantly better than the Renault and Peugeot models, which claim 6.2L/100km and 6.3L/100km, respectively. The Caddy’s CO2 emissions are also low at 129g/km, again better than the Peugeot (142g/km) and Renault (141g/km).
During testing, the TDI320 achieved an impressive 5.5L/100km fuel average in mixed urban and freeway driving.
Driving Experience
One of the Caddy’s key drawbacks – not unique to VW – is its limited visibility. Navigating narrow spaces can be challenging, despite the presence of sizable mirrors. A multi-camera 360-degree viewing system would be a valuable addition.
The Caddy’s compact size, along with factors such as its noise/vibration/harshness levels, ride quality, and handling, makes it comparable to a small or mid-size car in terms of comfort and ease of driving. It is agile on secondary roads and comfortable on freeways.
The engine is particularly refined, especially for a four-cylinder diesel, with responsive acceleration. The seven-speed dual-clutch auto transmission is generally smooth, but sometimes emits a noticeable thump, particularly when reversing uphill at slower speeds.
Interior
The front cabin is separated from the cargo area by a steel panel with a window, protecting occupants from loose cargo. The seats are comfortable but lack armrests. Vision from the B-pillar forward is acceptable. While designed for commercial use, the Caddy competes well in payload, load areas, and access compared to its rivals.
The short-wheelbase Caddy can accommodate an 1165mm-square Australian pallet or an 800mm by 1200mm Euro pallet when loaded from the rear but not from the side door. The Caddy 2.0 TDI320 SWB is rated to tow a braked trailer of up to 1500kg.
Verdict
The short-wheelbase Caddy 2.0 TDI320 is a punchy, economical, and comfortable small van with a five-star safety rating, unlike its French rivals. It is a pricier option than the Peugeot Partner and Renault Kangoo, but it offers a good balance of performance, economy, and safety, making it a solid choice for those needing a versatile and practical commercial vehicle.
