Volkswagen to reconsider its diesel strategy under India 2.0

- Volkswagen will introduce diesels only in higher segments

- Tiguan AllSpace, T-Roc and Passat likely to get 2.0L TDI by end 2021

- Smaller Volkswagen cars will come with 1.0L TSI engines

With its renewed focus towards the Indian market and the impending transition to BS6, Volkswagen has steered itself away from introducing diesel versions of its cars in India. However, the German auto major isn’t completely giving up on the oil burner, as it has confirmed to CarWale about its plans to reconsider its diesel strategy under its ‘India 2.0’ project.

Speaking to CarWale on the sidelines of the Volkswagen T-Roc launch, Steffen Knapp, Director – Marketing, Volkswagen India, said, “The logical consequence of our strategy is to start with a TSI, but we are also looking into TDI as a solution.” However, he was quick to mention that a business case for diesels make sense only in the higher segments.

He further added, “What we saw in the small segment, compact SUVs the hatches and so on, the diesel part was continuously shrinking. Let me give you some numbers. About three years ago when I came, about 60 percent of our Polo’s were TDIs. Now, end of 2019, its only 11 percent. When it comes to the bigger cars, the AllSpace, Tiguan and Passat, we will initially go with TSI and later we’ll have to see if we want to add a TDI to it.”

Volkswagen predominantly sells its passenger cars in Tier 1 and Tier 2 cities, where the ideal daily commute distance is not more than 10-15kms, the company claims. And therefore, it makes a strong business case getting TSI in the market. But as the company grows its presence in India in Tier 3 and Tier 4 cities under the ‘India 2.0’ project, it will look at introducing diesel engines as well. 

Now, since Volkswagen will consider introducing diesel engine only in the higher segment, we expect it to only offer the 2.0-litre TDI engine in India. And considering the volumes it may generate, it is safe to expect that this engine will be completely imported in India. So, anyone considering to buy a Volkswagen diesel car, be sure to wait until mid to late 2021.