As a segment of the new vehicle market, `people movers’ seem to have been with us a relatively short time, but as a concept they go much further back.

The whole thing definitely began back in 1950 with the venerable VW Kombi, and its latest direct descendant is the Volkswagen Caravelle, which recently returned to Australia with its commercial sibling, the Transporter.

Both use the same 2.5 litre five cylinder engine (yes, five cylinders in line), and display the robust build quality for which VW has a justly earned reputation.

They’ve been given a new look with a longer nose which incorporates impact-absorbing `Y’-frames, while underneath is a front axle derived from the high-performance Golf VR6 (remember this is front wheel drive). But while Transporter is a purely commercial vehicle, Caravelle is unashamedly luxurious in its trim and equipment.

All Caravelles imported here now have GLS level trim with cloth cord upholstery, deep poile carpet and fully trimmed side panels. Standard fitment now includes ABS brakes, alloy wheels, climate control air con with dual controls, power steering/windows/mirrors, cruise control, six-speaker digital stereo, front and rear fog lights, tinted glass and central locking.

A true eight-seater with ample luggage space left over, it has real `walk-through’ access from font to rear (with sufficient height to make it easy), and also has very versatile seating. Both rows of rear seats are easily removed, reverting Caravelle to almost Transporter-like cargo capacity through the big sliding side door.

The over-riding sensation is of the spaciousness inside. Although similar in width and length to a wagon of more average dimensions, Caravelle seems cavernous by comparison, and offers extremely comfortable accommodation for passengers.

Ergonomic layout for the driver has obviously been a priority, with controls ideally located. Our test vehicle had VW’s "Dynamic Shift Programme" auto transmission, with the selector lever on the floor and thoughtfully inclined towards the driver, who is provided with not one - but two - armrests.

Both front seats actually have these swing-down rests, which are easily adjusted to exactly the right height and make highway or freeway cruising a dream.

The driving position, while upright and looking frankly a bit `truck-like’, is extremely comfortable and offers an unimpeded view of the road ahead thanks to Caravelle’s fairly elevated height.

Probably our biggest surprise was that this undoubtedly large vehicle, powered by an engine of just 2.5 litres, is capable of unexpected acceleration; it's admittedly not a traffic light `Q-ship’ ready to blow V8s into the gutter, but spirited and lively in its response to throttle pressure.

An in-line five cylinder engine still seems strange to those of us who grew up believing the big straight six or the V8 were the only answers possible. That odd cylinder seems to balance the whole thing out, and it is far smoother than we might expect.

Its 85kW of power is not exactly startling but the 200Nm of torque is a big factor in performance, especially as it arrives at only 2200rpm. That sort of unfussed performance allows Caravelle to cruise serenely over long distances with reasonable economy, averaging 12.8 L/100km (22mpg) during our test.

But after being impressed by the engine’s liveliness and economy, the interior spaciousness and unexpectedly low noise levels (VW had come up with a complete new insulation package), I should not have been quite so surprised by what happened when we ventured onto gravel back roads.

Half-expecting Caravelle to wander and wallow like a disoriented whale, I was highly impressed by the precision of its handling. That front-drive axle from the Golf VR6 incorporates an electronic differential lock, and the big wagon felt completely at home on corrugated gravel.

And braking tests indicated that the fifth generation ABS brakes can recognise such surfaces, in addition to wet bitumen.

At various speeds on ball-bearing gravel, it pulled up in a straight line with only a slight skittishness as the four brake discs locked and unlocked in milliseconds. It doesn't mean you can do ridiculous speed on gravel without a care, but does mean more control in an emergency.

A people-mover that can live up to its job description with comfort added in, Caravelle seems to have been well adapted to Australian conditions. And with aggressive lower pricing despite its upgraded trim and equipment.