Thanks for the replies.
So how would I then go about engaging penal squads? Which range would be the best for this? I am aware that they're a 300 mp squad which means they're most likely inherently better, but should I even consider engaging them 1:1?
No, do not engage them 1:1 unless you have cover and they do not. Volks are great for their cost, they get better with ugprades and vet nice. But out of the gate Volks are better than Conscripts in terms of mainline infantry. But weaker than Penals, Rifles, Infantry Sections AS THEY SHOULD BE. As they are cheaper to field than any of the those mentioned.
Don't listen to anyone who says otherwise, they're a cheap unit to field so they have cheap performance. They get better later on, Penals don't do well late game because they are just too easy to kill with better options.
Personally I struggle as OKW vs the Penal Scout Car spam, a good player makes it a nightmare. But blob up, focus the car down, lay a mine and hope for the best. Spread yourself thin and you'll be losing all those 1:1 engagements. Good micro on sturms can go far, but Penals can burst them down scarily fast if you are not careful.
I'm primarily an allied player, and I made the swap to OKW because the search queue bias and I wanted a change. But boy, it's a challenge for me to adjust to them.