The Volkswagen Tharu: Underrated but Overpriced?

Volkswagen Philippines enters into a new price bracket, micro-segment, and era—so to speak. The German brand in the country under AC Motors has forrayed into an upper segment in the market with the Tharu, not only because of its price but also with a lot of refinements over the entry-level subcompact in the Philippines, the T-Cross.

Here is another “T-crossover” from VW launched in 2023 for the 2024 model year. Whereas the Tiguan was able to fan the flames of passion before, with long-time and die-hard Volkswagen fans, does the Tharu have what it takes to bring back the magic that the Tiguan had? Considering that the Tiguan is a product of its time, and considering that many things have changed in the VW lineup since it was first introduced in the country, the Tharu brings marked improvements over previous-generation VW crossovers, and one can argue that it is one of the more exciting releases from the brand thus far, not only because it is new, but also because the pricing is rather bold. 

Starting at P1,808,000, it is a bit of an ask for a base trim with the top-of-the-line price maxing out at P1,945,000. It is because of that price that we questioned Volkswagen Philippines, and it is because of that price that we sort of understood why the brand needed to evolve. For this feature, we’ll be tackling aspects of the car, its positioning in the market, and the peculiar case of its pricing to give you a better understanding of its worth as a car that you can purchase today. 

Nowadays, it’s getting a lot harder to compete in the compact and subcompact crossover segments in the Philippines. Considering that so many brands are in the space now with very compelling products and pricing, it’s akin to a gladiatorial arena, especially for products that are priced under P1,500,000 or a little over the mark. We get it, however, bang-for-buck is the name of the game in the Philippine crossover segment right now, and a lot of brands are selling well by making sure that their cars are well-equipped, decently powerful, and affordably priced. 

You don’t have to look far to get a good compact crossover anymore. The equipment and tech package of compact crossovers like the GAC Emkoo or the Ford Territory to name a few are quite compelling. For Volkswagen to enter the arena filled with compelling and well-equipped options in the market would definitely be an uphill battle for the brand. We won’t beat around the bush either and say that VW Philippines hasn’t been in the best position in the market lately, with the most notable model from the lineup being the T-Cross which sold rather well because of its relatively low price tag when it was first introduced. 

Volkswagen is a European brand, and one may argue that the logo does carry a certain weight when it comes to recognition, reliability, and trustworthiness. Considering the current roster of rivals that it has to face in the segment, perhaps the act of distancing the Tharu’s price tag from the rest of the mainstream crossovers was one way to instill at least some level of exclusivity for the brand’s newest model. So is it overpriced? One can argue that it is too tall an order. One may also argue that it fences off VW’s market and puts it in more premium territory with the likes of Peugeot and Mazda. Now, the question of whether the Tharu belongs with those brands’ crossovers is another debate entirely. 

There is a micro-segment of sorts in the Philippines. On the one hand, you have your mainstream-mainstream cars which include the likes of Toyota, Ford, Honda, Hyundai, GAC, and Geely to name a few. Then, you have the premium-mainstream brands which price higher but offer finishes and refinements that are more in line with what cars in the premium category offer. If you want to be strict about the classification of brands, premium-mainstream is still mainstream albeit with a higher price tag compared to most. 

By pricing higher, VW has opened a can, and whether that is a can of worms is still up for debate, but considering that the brand has officially fenced off the Tharu from being another mainstream crossover fighting for market dominance makes it a hint more special for people that really want a VW badge on a new compact crossover. 

The key to success in the premium-mainstream market is to offer consumers a car that is remarkably better than what you can find in the mainstream-mainstream market. Mazda has been able to do this with their uber chic and driver-focused cars, offering consumers an ownership and driving experience that is rather unmatched by other mainstream brands. Meanwhile, Peugeot banks on its European origins and designs, and offers a very unique style of interior and exterior, which resonates well with people that want a competent vehicle that is quite different from the standard fare. 

To answer the question we will first defer to what executives at AC Motors told the media during the launch: “You have to drive it.” We were able to drive the Tharu extensively and get a closer look at it before it was released to the public. During our walkaround, we thought that the Tharu had a fighting chance in the compact crossover segment against the likes of the Territory or even against Japanese brands given its interior quality, personality, and what weight that the VW logo carried at the time. Considering that there are still fans, it made us hopeful that VW had something of a fighter on its hands, that is until the price was announced. 

Doing some research before we got to experience it, we learned that the Volkswagen Tharu is actually offered in other countries under the name “Taos.” Built on the same bones and specced with the same engine in some trims, it’s no wonder that the car had a bit more in the way of refinement compared to the “standard” VWs we were able to experience in the past. Volkswagen Philippines didn’t exactly lie when it said that it would be fielding more global models in its lineup, albeit with a bit of a loophole with regard to the Tharu. Even so, we were admittedly a little fearful for the crossover after our walkaround and during the launch, but then Volkswagen Philippines handed us the keys to the Tharu and told us to cover it, drive it, and also try and see what they were on about. 

So we did “drive it,” and while we still thought it was overpriced, the more kilometers we ran up on the odometer, the less overpriced it seemed (we still thought the price was a bit high, though). We still feel that VW has the stuff to play in this slightly higher price bracket after driving this car. It felt like a return to form in a way. 

The story continues as we hit turns, potholes, and city streets with the Tharu. Considering that the drive of the T-Cross wasn’t so fantastic, the Tharu was able to pull a 180-degree turn and actually bring some excitement in the time that we were able to spend with it. The engine is responsive, the transmission is sharper than most, and the interior feels a few hairs more premium than what we’re used to in the mainstream. So far so good for our first drive impressions. The bones of the car are also good, with a chassis that is rigid and planted in corners, but engineered well enough with the suspension to absorb bumps without disturbing the sanctity of the cabin. 

Competent it is, and the Tharu has a good drive in relation to other legacy models in the VW lineup like the Tiguan. Noise vibration and harshness were also quite acceptable on the highway, and while the 1.5-liter turbo engine isn’t the most powerful in its class, it has an extremely decent pep in its step, and the horses in the motor kicked hard thanks to the seven-speed DSG that the Tharu comes with. For what it is worth, making a car that is consistently engaging to drive is no easy feat, but the Tharu manages to dial it in for us. With drive modes on top, you could say that we perhaps had a little too much fun in this crossover. 

However, while spending time with the Tharu, we did notice that it didn’t get noticed. If you are a low-key person, this will actually be a plus, but if you are someone who takes pride in your choice of vehicle, then perhaps the Tharu could be a little too understated. Heck, you don’t have to look too far to see the trend in the crossover segment. A lot of these affordable subcompact and compact crossovers are going haywire with the wings, diffusers, and spoilers in a bid to look aggressive, sporty, and dynamic. The Tharu, while rather fun to drive, is very understated in its style, with the front DRLs and rear position lamps being the only flashy design features on the automobile. 

There is a “but” with the Tharu. Yes, it may be a great car to drive and it’s a very decent step up in terms of size and the fundamental quality of its build. The interior colors are a bold choice that VW Philippines made, but so is the brand’s bid to price up the Tharu against more premium options in the mainstream market. See, while the fundamentals of the vehicle were all good, what Volkswagen is currently lacking would probably be the prestige and brand power to be able to command a higher price, at least for now. That, and the name Tharu isn't something that most enthusiasts grew up with. 

What Volkswagen has done right is introduce the Tharu to the Philippines. It has a decent amount of features, it has a very good engine and transmission combo, and it has a bold interior that is sure to resonate with quite a number of buyers in the Philippines. While the Tharu may be "it" in terms of the overall package we expect from a quality Volkswagen, and a quality premium-mainstream vehicle, the only thing that could be holding the model back could be its name and the current image that VW has in the Philippines. Whether or not the brand has earned its station yet in the market is up for debate. Some may say that it doesn’t belong in the more premium end of the mainstream, others will say that the name Tharu cannot command a high price tag like that even if the car is good. 

If you ask us, it might’ve been a bit early for VW Philippines to price the Tharu that high. The brand will face an uphill battle, a rocky road, or a journey of a thousand steps, but Volkswagen Philippines boldly and bravely took that first step, went over the first stone, and started climbing up the hill all with a crossover that they believe in and that's frankly quite good. The crossover is good, but the name “Tharu” needs to be established. It's the emotion that the name evokes that needs a bit of work and building. The Tharu has a very interesting story in the market and it signals the start of an intriguing chapter in Volkswagen’s history. It’s a good crossover, but the main problem is that it’s not for everyone, and it’s only for the ones who really want and love the VW brand without question. It's a very underrated car now based on the court of public opinion, but as far as our review goes, it's kind of hard to fault just how pleasant it is to drive. Underrated and overpriced perhaps and most of all overlooked, it's up to Volkswagen to inject the prestigious element in its vehicles, and we have faith that the brand can execute or at least put in the effort to do so.