VW Passat Alltrack at the motor show

Volkswagen has come close. It is now the eighth most popular brand in Australia - from a list of 48 players - with almost 5 per cent of the market.

Though the figure seems small, consider that five years ago it had 2.6 per cent of the market and that today it more than doubles the sales of the next most popular European, Mercedes-Benz, which has a 2 per cent share of the market. 

Now, Volkswagen spreads its product range wider, poised soon to launch its cute, highly efficient and sub-$15,000 city car, the Up. It is to present its Passat Alltrack - an all-wheel-drive Subaru chaser - and the new-generation Beetle, while trimming its Touareg SUV range back to a diesel-only selection and preparing a new Golf for the world market.

The latest product niche is a wagon that takes on Australia’s crossover darling, Subaru. At the same time, the Volkswagen Passat Alltrack takes a swipe at a similar product from family owned Audi - the yet-to-be released $70,000 A4 Allroad. The Alltrack arrives 40 years after Subaru launched the all-wheel drive wagon and singularly changed the way we drive today.

It is expected to cost around $49,000 - which is a one third discount on the Audi - and its turbo diesel and automatic transmission specifications take on the Subaru Outback (which is yet to launch an auto diesel) and the Volvo XC70 D5, which costs from $64,000. The Alltrack is a different kettle to the Passat V6 4Motion, a $56,000 road-going sports-oriented wagon. 

In fact, it gets the same off-road package -  electronic drive traction and braking aids, a steel under body and extra 30mm ride height - as the sister Touareg and Tiguan SUVs. Except for the Passat’s extended front and rear overhang, it is as capable off the road as these two. But it is biased towards the street.

Compared with the Touareg and Tiguan, it is more luxury-oriented, more comfortable and handles the bitumen with far more confidence. Driven in Austria and Switzerland at its international launch in March, the Alltrack cleverly melds off-road purpose with on-road convenience.

Its external size offers excellent cabin room, a huge boot and the expected high level of versatility in an SUV. The dashboard escapes much of the all-black plastic of some VW models with contrasting colours and soft-feel plastics. Driven in mud and snow, I commented that though the all-wheel-drive system - Volkswagen calls it 4Motion - has been around for a few years, it remains simple and effective.

It delivers about 10 per cent power to the rear wheels on bitumen but seeks out traction and is flexible enough to put up to 100 per cent to the rear wheels. The sole engine at its launch in Europe was the 125kW/350Nm 2-litre turbo-diesel that’s common to a string of VW, Skoda and Audi product. The box is a six-speed DSG with paddle shifts for manual operation.

Tested in snow, the all-wheel drive system constantly sends power to the wheels with traction. It works very well, but enthusiastic off-road owners will find the car’s flaws are its 165mm ground clearance and its comparatively long 941mm/1120mm front/rear overhangs. The Alltrack will tow up to 2000kg and is appealing to people towing boats, horse floats and caravans.