Volkswagen Says It Already Has the Technology for CNG and Ethanol in India — Just Needs to "Configure It"

Volkswagen doesn't need to build new technology to respond to India's shifting fuel conversation — it says it already has it, sitting in its global portfolio. Thomas Schäfer, Member of the Group Board of Management, CEO Volkswagen Passenger Cars Brand, addressed the topic directly in an interview with ACKO Drive.

"Yes there's a lot of dynamics lately especially you know obviously conflict in the Middle East now you have to focus all of a sudden on CNG again, on Ethanol and so on," Schäfer said. "So to find the right mix and the right plan for the country."

On ethanol specifically, he pointed to Volkswagen's long experience with flex-fuel technology in another major market. "Good thing is we have all of it," he said. "We have ethanol super strong in flex fuel in South America for many many years... an abundance of models. So it's available. We've got [it]. We just need to configure it now right for the market."

Schäfer framed this as part of a broader balancing act Volkswagen is working through for India, where multiple drivetrain options — combustion, flex-fuel, CNG, hybrid and electric — are all live considerations at once. "To make the right plans for it depends on two things," he said. "One is to have the right drivetrain strategy."

Asked later about a possible return to diesel, Schäfer situated that question within the same framework, describing India's fuel strategy as ultimately a matter of prioritisation rather than capability. "You have all these options now," he said. "You got to choose some of it. You know, investment needs to be focused. You cannot invest in everything at the same time."

Volkswagen is not short of technical options for India but is instead working through which combination — CNG, ethanol, hybrid, or a mix — makes the most business sense given current market dynamics, including global disruptions affecting fuel prices and availability. Schäfer indicated that a clearer picture on this "drivetrain configuration" is the brand's most immediate priority. "That's that's the imminent focus now in the next couple of months," he said.