TDI on a high!

VOLKSWAGEN Group Australia (VGA) claims its diesel strategy is paying off, pointing to dealer orders that show demand for the company’s turbo-diesel (TDI) models has exceeded forecasts.

The company cites spiralling fuel costs as the obvious reason for diesel demand, as well as Australian consumers’ growing awareness of the performance attributes of TDI power.

For VGA’s volume-selling Golf, TDI orders have consistently surpassed those of the petrol-powered models. Currently it is running at just over 50 per cent, instead of the mere seven per cent Volkswagen originally envisaged when the current Golf was released in Australia late in 2004.

Australians have also been choosing the larger and more expensive 103kW/320Nm 2.0-litre TDI over the entry-level 77kW/250Nm 1.9-litre TDI.

Ironically, the decision to add the 2.0 TDI was a last-minute one.

Furthermore, Volkswagen’s much-praised DSG twin-clutch six-speed automatic has taken the lion’s share of sales over the six-speed manual gearbox, despite commanding a higher-than-average $2300 premium.

Similarly, the Polo TDI model released last October as part of the light car’s Series II makeover forms 35 per cent of overall Polo sales, when only about 15 per cent was expected.

"Sales are moving along and gradually creeping up," a company spokesman said.

Once source told GoAuto that the Polo TDI figure would be much higher if the model was available with automatic transmission.

It is currently restricted to a five-speed manual gearbox – and Volkswagen AG has no plans to develop an automatic version for the current generation model, as European diesel buyers prefer to shift gears themselves.

"Both the Polo TDI and GTI bring emotion (to the range) without us having to push it," said VGA managing director Jutta Dierks.

VGA’s latest arrivals are also heavily diesel-orientated.

In terms of diesel-to-petrol sales ratio, the Caddy Life people-mover launched late last month is expected to eclipse the Golf upon which it is based.

"Most buyers will choose the TDI," said Mrs Dierks, despite the fact that it imposes a $4000 premium over the sole petrol-powered model.

The $27,990, 75kW 1.6-litre petrol Caddy Life exists primarily to attract buyers’ attention to the fact that Volkswagen offers a seven-seater people-mover from Europe for under $30,000.

At the beginning of the year Mrs Dierks told GoAuto that one of her goals was to combat the misconception that Volkswagens were expensive.

"(We need to get) the message across (that) we are affordable, we have German engineering and that we offer quality for incredible value and that we have cars that are fun to drive," she said at the time.

VGA’s 2006 sedan debutantes – the Golf-based Jetta released in February, as well as the all-new Passat – are also relying heavily on strong demand for the TDI models.

Half of all Jetta sales are made up of the $35,000 to $40,000 2.0-litre TDI, while the Passat TDI’s share is running at between 35 and 40 per cent.

The 2.0 TDI is the latest-generation Passat’s entry-level model. It will be joined by a more powerful version from about October, following the availability of higher-grade diesel fuel in Australia from August.

The 125kW 2.0 TDI, generating 350Nm of torque in German tune, will be pitched as a more overtly sports-orientated model. It may also become available with the Haldex all-wheel drive, in addition to the usual front-wheel drive format.

The 125kW 2.0 TDI is also waiting in the wings for fitment into Australian-bound Golfs. In Europe Volkswagen markets it as the high-performance Golf GT TDI.

"Volkswagen is looking very, very closely at how the market is evolving," said VGA public relations manager Matthew Wiesner. "The point is that this diesel thing was launched as a niche back in October 2004 when the Golf MkV arrived.

"Now it is a very significant part of what we are doing."