Volkswagen will offer a five-year, unlimited-kilometre warranty across its range until December 31.
Michael Bartsch, Volkswagen Group Australia managing director, said customer reaction to the promotion will be "very informative".
Led by Hyundai and Kia, there's been an industry-wide push toward longer warranty coverage over the last 12 months. Honda, Holden, Ford and Mazda have all announced five-year warranty periods, up from the traditional three.
Nissan, Subaru, Suzuki, Toyota and Volkswagen are the only 'mainstream' brands still offering a three-year term, although this promotion could be the precursor to a shift from Volkswagen. It's worth bearing in mind, sister company Skoda already offers five years of coverage, although its volume is much lower than that of VW.
Volkswagen has previously pointed to the fact Australian Consumer Law protects people from defective purchases, and highlighted a 'goodwill' policy drummed into its dealers, as some of the reasons it has continued with a three-year warranty.