We have said it before and we will say it again: Australians love a fast car.

One in four local Volkswagen Golf customers plumps for the performance-oriented GTI or Golf R when choosing new wheels, and sales of the two hot hatches are often split down the middle. Australia ranks among the top three countries for Golf R ownership per capita, something Volkswagen will target with a range of limited-edition models aimed at driving enthusiasts.

Local customers will soon be able to get hold of a modestly-equipped Golf R Grid for less than $50,000, or push into premium territory with the upcoming Wolfsburg Edition for $57,990 plus on-road costs. The much-loved Golf R Wagon will also return as a permanent member of the brand’s performance car line-up.

Those models are not available yet, so Volkswagen tossed us the keys to the regular Golf R in updated seventh-generation trim, a car that benefits from crisper lines for the front bumper and guards, revised LED lights and new tech including a 12.3-inch digital dashboard and 9.2-inch central infotainment screen with Apple CarPlay and gesture control. 

Both are welcome additions that fit the model’s ethos, bringing premium performance and technology at an affordable price. 

On sale for $52,990 plus on-road costs in manual form or $55,490 with a dual-clutch automatic transmission, the Golf R remains competitive in the face of new competition from the new Honda Civic Type R, updated Ford Focus RS and upcoming Renault Megane RS.

The car is loaded with lots of kit including sat nav, sports seats with leather trim, 19-inch wheels and bigger brakes than the GTI.  Volkswagen saw fit to bump power from 206kW to 213kW while adding an extra gear to an optional dual-clutch auto that now has seven forward ratios. Both transmissions drive all four wheels through a reactive system that sends torque on demand to the rear axle.

As expected, the top-end Golf is well-equipped with a modest options list that runs to a driver support package with high and low-speed autonomous emergency braking, active cruise control and lane keeping assistance ($1300) and a panoramic sunroof ($1900). Metallic paint is a no-cost option.

Volkswagen takes a discreet approach to performance with the Golf R, which shuns the enormous spoilers, red badges and flashes of colour used by key rivals.

Without the flat-bottomed steering wheel and aggressively-bolstered seats, the interior could be mistaken for that of a well-equipped Golf 110TSI. The proliferation of modestly-powered Golf R-Line tributes means you could say the same about the R’s exterior style, though quad exhaust tips give the game away at the rear.

Understated potential is what it’s all about.

You could drive the Golf R every day without appreciating its ultimate performance – this is a quiet and comfortable car that is perfectly liveable in everyday driving, particularly if you opt for the traffic-friendly DSG auto.

In a way, it’s a little like an iPhone – an unassuming sliver of glass with capabilities that reach far beyond texting, selfies and social media feeds.

The hatch is both remarkable and unremarkable in the best way possible.

We tested the updated version in a wide variety of conditions – going beyond city driving and motorways to find rollicking country roads in dry, slick and gravel-strewn conditions. 

Able to hit 100km/h in just 4.8 seconds, Volkswagen rightly points out that its hatchback offers the sort of thrust usually reserved for sports cars such as Porsche’s 911.

The Golf R’s larger turbocharger gives it a more engaging character than the GTI, hitting its stride later in the rev range with a touch more turbo rush than its cheaper cousin. There’s a strength and flexibility to its power delivery that means you don’t need to go hunting for the right gear in a given situation, though it is fun to paddle through the ratios or work the gearknob a little more than necessary.

That choice of transmission is key to the Volkswagen’s success in Australia, attracting sales from customers who don’t want to deal with a manual transmission. Those who do go for the manual are rewarded with a light clutch, smooth shifts and a more engaging experience when driven with vigour. 

This car is extraordinarily quick on a cross-country run, offering an unflappability that gives you plenty of confidence in what the car can do. The Golf feels planted and neutral in most circumstances, offering grip – and traction – to spare. 

It flows with the road, bringing fluid responses through its adaptive suspension and quick steering. Our test example coped well with all but the harshest bumps in the road, tracking true on broken country roads. 

That’s not to say it is perfect. The Golf R’s brakes don’t cope with extended abuse quite as well as the race-bred calipers you might find on rivals, its all-weather Continental tyres aren’t as grippy as the supercar-spec rubber on Ford’s Focus RS and the Volkswagen’s exhaust note is a rather characterless blare augmented by electronic fakery within the cabin.

This is more of an everyday proposition than a track-bred weapon. 

If Volkswagen’s Golf GTI is the everyday performance car for everyone, then the Golf R is for those who need a little bit more - more power, more traction and more exclusivity.

Strictly speaking, no one needs more performance than that offered by the do-it-all GTI. 

But that’s clearly something plenty of people want.

2018 Volkswagen Golf R pricing and specifications

Price: From $52,990 plus on-road costs

Engine: 2.0-litre four-cylinder turbo petrol

Power: 213kW at 5400-6500rpm

Torque: 370Nm at 1850-5300rpm

Transmission: Six-speed manual or seven-speed dual-clutch auto, all-wheel-drive

Fuel use: From 7.2L/100km

- For more information visit our Volkswagen showroom