VOLKSWAGEN Group Australia (VGA) will launch the Tiguan Allspace seven-seat SUV in the third quarter of 2018 in more than one specification as it mounts a fresh assault on the medium SUV class that will coincide with increased supply of five-seat Tiguan variants.

The German car-maker’s overall sales volume in Australia was steady last year, with its 58,004-unit tally representing an increase of just 2.5 per cent (1433 sales) compared with 2016.

However, VGA general manager of product and marketing Ben Wilks said the result was hindered mainly by restricted Tiguan supply and a lack of other SUV models in the company’s line-up.

“I think the fact that we are doing the sort of business that we’re doing despite not having all those (small and large) SUVs, it speaks volumes about the strength of the brand still, and the sort of products that we do offer,” Mr Wilks told GoAuto at the national media launch of the Golf GTI Original in New South Wales earlier this month.

“The awareness of Tiguan is moving up quite strongly (and) it still remains a car that has a time to order in some models. We’re finding that demand is very strong, and we fight always with the rest of the world to secure as much production as possible, and I think it’ll be that as much as anything that determines what we can ultimately offer to the market.

“We are producing more vehicles (for Australia) this year so far on Tiguan, and we’re confident of meeting the customer orders now that we have, so we’re getting back to a good place on that and it would just be a matter of continuing that momentum throughout the year. I think you’ll still see (more) cars coming through in the months ahead as well.”

VW’s SUV range – comprising Tiguan, Touareg and Passat Alltrack – made up just 23.2 per cent (13,443 sales) of the brand’s total volume last year, while passenger cars accounted for 42.4 per cent (30,372).

While this marks a big change from VW’s sales split a decade ago – in 2008, passenger cars made up 79 per cent of its 29,875 total – it contrasts starkly with Mazda’s SUV sales that made up 45 per cent of its overall tally last year.

Sales of the Tiguan exploded from 5974 units in 2016 to 9620 in 2017 following the switch to a larger second-generation just over a year ago, and in the process the model leapt from being the fourth most popular Volkswagen locally (behind Polo and Amarok) to second, behind Golf. Despite this, it only moved up two spots – from 10th to eighth – in the booming medium SUV class.

Mr Wilks said a combination of resolved supply issues and the addition of the seven-seat Allspace in the third quarter would be – along with the new-generation Polo light hatchback – the main drivers of growth for the brand this year.

“I think it is (also) just about having obvious gaps filled,” he said.

“I think that the Tiguan story is very strong so far, but I think it can go even further (with) Allspace as well. At the moment that’s a gap in our range when customers will want to stay with Volkswagen, but they’re needing to move away because we don’t have a seven-seat SUV.

“There’s a good market for a vehicle like that. So I think there’s a big growth opportunity, there’s a big opportunity to grow the pie.”

Asked whether VGA would follow seven-seat medium SUV rivals such as the Honda CR-V and Nissan X-Trail and offer only one or two model grades of the Allspace, Mr Wilks revealed that “you’ll see more than one model from us”.

“I think there’s an opportunity to have a look at what we’ve done with Tiguan, and understand what we know about that market, and transpose that onto the seven-seat market,” he said.

“The seven-seat market, everyone won’t be entirely homogenous.

“I think we’ve got a fair bit of momentum this year, so with the new Polo, with Tiguan as well, with the release of Tiguan Allspace it takes us into new segment, that’s largely an incremental segment for us, and into an exciting opportunity.”

However, Mr Wilks declined to commit to a forecast sales increase for the car-maker in Australia in 2018.

“It remains to be seen,” he said.

“I think we’ve got a strong year, I think we’ll see the market continue to be as it has been in terms of the move toward SUV, perhaps that levels out a little bit, and we’re still pulling very strongly with our passenger vehicles.

“But there certainly are some great models and some great things to talk to the customers about.”

By Daniel DeGasperi