It set a new course record for commercial vehicles at Mondello Park in Co Kildare with a time of 1.05.77.
Powered by a 4-cylinder, 16-valve, 2.0-litre engine, the impressive Volkswagen Caddy Racer matched and surpassed many of the times set by conventional racing cars on the Mondello circuit.
The Volkswagen Caddy Panel Van is the most popular commercial van in its class with an estimated 556 units sold by Volkswagen Commercial Vehicles so far this year.
Volkswagen Caddy Racer enthusiast and Managing Director of Volkswagen Group Ireland, Simon Elliott, said: "The Volkswagen Caddy Racer is a powerful machine with an even bigger heart.
"I have raced it competitively in the UK and I am certain that there isn't a commercial vehicle in Ireland that could come anywhere near matching it.
"It has all the very best attributes of the standard Volkswagen Caddy Panel Van plus a little extra!"
The Volkswagen Caddy Racer demonstration was the centrepiece of a Volkswagen Commercial Vehicle media event, where the entire range of the commercial lifestyle fleet was showcased to journalists from around Ireland.