Volkswagen explores CNG cars as India powertrain strategy evolves

Volkswagen India is evaluating CNG-powered vehicles for the medium term while keeping battery electric vehicles (BEVs) on its longer-term roadmap. The company is also exploring a potential partnership with JSW to identify opportunities in localisation, scale and competitiveness, Nitin Kohli, Brand Director, Volkswagen India, told Business Today TV.

Volkswagen is prioritising powertrain technologies based on consumer preferences and market demand.

While the company currently focuses on its 1.0-litre and 1.5-litre TSI petrol engines, CNG is among the options being evaluated for India. However, Volkswagen has not confirmed a launch timeline or specific models for CNG.

“Today, it is interesting as we see the Indian automotive industry developing and the way it is getting fragmented. I wish all the powertrains were available, but we need to pick and choose the priority areas,” Kohli said.

JSW partnership discussions remain preliminary

Volkswagen and JSW have signed a non-binding memorandum of understanding (MoU) to explore potential business opportunities. Kohli said discussions could cover localisation, business scale, speed of execution and competitiveness, but stressed that they remain preliminary.

The potential collaboration could help Volkswagen strengthen its position in India, where localisation and pricing are important factors. However, the companies have not announced a definitive agreement or specific product plans under the proposed partnership.

Volkswagen sees EV opportunity towards 2030

While CNG is being evaluated for the medium term, Volkswagen sees BEVs as a longer-term priority. Kohli expects electric vehicles to account for around 15-20% of India's automotive market by the end of the decade, compared with an estimated 6.5-7% currently.

He also indicated that local manufacturing would make more sense for Volkswagen's future EV presence in India, while highlighting the importance of charging infrastructure and the wider ecosystem. The company has not announced a definitive timeline for a locally manufactured EV.

Taigun refresh boosts volumes

Volkswagen has reported growth following the Taigun refresh in April. According to Kohli, second-quarter volumes were more than 30% higher than in the first quarter, while third-quarter volumes were around 15% higher than the first quarter. Festive-period sales grew approximately 11% year-on-year.

The company is also targeting festive-season growth of around 14-15% compared with an average month.

Passenger vehicle market outlook

Kohli expects India's passenger vehicle market to cross 51 lakh units this year, with annual growth of around 15-16%. He said industry sales reached approximately 39 lakh units between January and September.

Volkswagen is also planning to expand its dealership network by around 15% by next year to strengthen sales reach and after-sales service.

On fuel compatibility, Kohli said Volkswagen vehicles were certified for E20 and E25 mandatory compliance.