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The fight could be brought to Toyota as Volkswagen prepares to launch plug-less hybrid versions of its popular hatchback and small SUVs.
Volkswagen has confirmed it will offer regular hybrid version of both the Golf hatchback and T-Roc small SUV, but it remains unclear if these Toyota-fighting models will make it to Australia.
The upcoming models will be closed-loop 'plug-less' hybrids with two electric motors mounted on the front axle, one as the drive motor and one as the generator.
For Europe, the models are positioned between the mild-hybrid eTSI already offered in some markets, and the plug-in hybrid models sold in Europe as the ‘eHybrid’ or sportier ‘GTE'.
Power will be fed back into the 1.6kWh nickel-manganese cobalt (NMC) battery through regenerative braking, and assisted by the 1.5-litre four-cylinder turbocharged petrol engine.
At low speeds, the hybrids drive on the electric motor and battery only; 'serial drive' mode switches on the engine to generate energy for the battery – not drive the wheels – while 'parallel drive' uses the engine to power the wheels above 60km/h, assisted by the electric motor.
Volkswagen says the vehicles will select between the operating modes to maximise efficiency depending on driving conditions.
In conjunction, there will also be three selectable driving modes: Eco, Normal, and Sport.
The German car giant is yet to reveal fuel economy figures for its new hybrid models.
Volkswagen's new hybrid system was presented to the public at the Vienna Motor Symposium in April 2026, with further pricing and specifications to be announced closer to its expected launch in Europe from October.
