Volkswagen plans new diesel engine, new offerings

Volkswagen is working on a diesel engine for its India line-up. The new engine, a 1.5-litre diesel, is likely to debut by the end of 2013.

“We think that a 1.5-litre, four-cylinder diesel is something we are missing here. So we are looking how we can bring it to India, maybe manufacture it here, or start production of such an engine in India for the current cars that are on the road,” says Dr Ulrich Hackenberg, board member, Volkswagen. The new diesel engine could also be used in the Polo which currently has a 1.2-litre diesel variant.

Volkswagen may produce the engine in its first engine plant in India, which is likely to come up in two years or so. “We may probably change the engines as well to get into India-specific regulations and looking forward, we could be starting sometime towards the end of 2014 with these activities,” says Dr John Chacko, president and managing director, Volkswagen India.

Along with new engines, VW will also bring in some new models to enhance its performance in India. They may be based on the PQ25 platform – the same platform that the Polo and Vento are based on. “That’s possible and it is a way we will follow,” says Dr Hackenberg. A crossover or a compact SUV could also be the new derivatives on the PQ25 platform.

Volkswagen brand sales have been largely flat. While the Polo sold 28,000 units in the first nine months of this calendar year, its year-earlier sales were close to 30,000 units. In the saloon space, the Vento is running neck and neck with the Skoda Rapid, its badge twin, with both selling about 11,000 units in the first six months of this financial year. The overlapping of the brand positioning of the VW and Skoda (VW Group owned) may be one reason. While Skoda in India is seen as a premium brand, its overseas positioning is below VW. So, there could be some re-arrangement of brand positioning in India. Volkswagen, which is working on various e-mobility solutions, recently showcased its NILS concept for the first time in India, along with the MicroCity — an intelligent urban traffic system at the Indo-German Urban Mela in Delhi.

SUMANTRA BAROOAH