Volkswagen Golf GTD is a sign of the times in Australia. A high-performance turbo-diesel would have been unheard of in Australia only five years ago, now this VW diesel is grabbing a lot of buyer interest. Our road test review of the all-new 2010 model shows why.

It offers low fuel consumption combined with plenty of engine grunt. The latter is due to the high torque figure of 350 Newton metres – pulling power is there from a low 1750 rpm through to 2500 revs. And even after that the engine continues to provide plenty of mumbo. Because unlike most diesel engines that go dead as they approach the 4500 rpm mark, the Volkswagen GTD 125 kW powerplant runs up to 5000 revs. Which makes a surprising difference as you will find out for yourself when you make your personal road test.

Manual and automatic transmissions are offered in the new Volkswagen Golf GTD, both with six forward speeds. The automatic is a DSG double-clutch unit that technically has quicker acceleration than the manual due to its ultra-fast changes. However, our road test review was done on a six-speed manual, still our transmission of choice in a high-performance car. The driving skill needed to get the best from a car by being in just the right gear at all times still makes us smile while driving.

There is some delay in acceleration due to turbo lag that can be frustrating to the keen driver. But once the turbocharger is spinning fast and the engine is operating in that broad band of torque it's a real pleasure to sit behind. Though it will race of the line and get to 100 km/h in about eight seconds, the engine’s real strength is in in-gear acceleration. This permits rapid overtaking in the safest possible manner. And hills are despatched in a higher gear than you would have thought possible

All of this engine performance is accompanied by a deep growl when the engine is worked hard. Yet when it's travelling easily it is as quiet as a petrol unit. When idling it’s obviously a diesel, but otherwise it's a refined powerplant.

Then there's the amazingly low fuel consumption. It's unlikely you will use much more than seven to eight litres of diesel fuel when driving hard, and on the motorways and in easy paced country running its consumption will be down in the five-litre range.

Visually the exterior styling changes that separate the VW Golf GTD from its high-performance petrol brother, the Golf GTI, are minimal. The shape of the honeycomb radiator grilles on the GTD is the same as that of the GTI, but the diesel gets chromed horizontal highlights instead of the red lines of the GTI.

Inside, the differences are much more obvious; the use of grey tartan trim in the cabin of the GTD makes a less exuberant statement in the fashion scene than does the vivid red tartan of the petrol powered GTI. The grey theme of the diesel is carried across to the gearlever knob and steering wheel wrapping.

Interestingly, Volkswagen Australia only sells the Golf GTD as a five-door hatch, thus reflecting the fact that it's more likely to sell to the economy minded couple or young family than to the full-on boy racers. The petrol VW Golf GTI continues to be sold in both three- and five-door format.

Interior room is good for four adults without any real need for those in the front to slide their seats forward from a comfortable position. Three children can be carried in the rear, but three grownups will rub shoulders and thighs as this is a fairly narrow car.

Interior stowage is good, with a decent bin in the centre console and door pockets that are deep enough to carry wallets without them falling out if you corner on the brisk side.