Volkswagen awaits approval for its dieselgate fix in India

2 min readUpdated Jun 4, 2025Jun 1, 20169:16 PM

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Volkswagen, the European automotive major hit by the dieselgate scandal, said the company has found a fix for its EA 189 diesel engines in India and has sent it for approvals of the local authorities.

Once it gets the clearance, the solution would be applied on 3.23 lakh vehicles that have been sold in the country with the EA 189 family of engines. The company said it has also found a software solution for the local Vento manual diesel model, production of which is currently stopped due to inconsistent emission of carbon monoxide. People in the know said Volkswagen could start recalling vehicles by the end of June or July to fix the problem. It is aiming to complete the process within six to eight months.

“We are awaiting approval (for the fix) and will begin the recall process in the coming months and are hopeful that fixes on all vehicles will be concluded by the end of the year,” Volkswagen India managing director Andreas Lauermann told ETon the sidelines of an event to roll out the Ameo sedan from its factory.

He said the company’s focus is currently entirely on the Ameo as VW seeks to make a strong comeback in the Indian market. The company’s image had taken a major hit globally following revelations that it had cheated on emission test results. Its sales were hit in India and elsewhere, even as it announced a massive programme to fix the problem.

“The 1.2-litre and 2-litre engines need software updates in India, while the 1.5-litre and 1.6-litre engines will get both software and a hardware fix.”

The recall process for vehicles fitted with the EA 189 diesel engines, which was to begin at the start of 2016, is yet to get underway. These EA 189 engines are of different displacements 1.2-litre, 1.5-litre, 1.6-litre and 2.0-litre TDI. The 1.2-litre and 2-litre engines need software updates in India, while the 1.5-litre and 1.6-litre engines will get both software and a hardware fix.

Volkswagen India, which posted strong sales in the first nine months of 2015 with double-digit growth, got hit because of the controversy, with domestic volume declining 2.4% to 43,152 units in 2015. Thanks to the strong export offtake and incremental Ameo output, Volkswagen India is planning to grow its output 15% in 2016 to about 1.42 lakh units. Developed with an investment of Rs 720 crore, the Ameo sedan is a made-for-India product in the VW world.

Ameo will be positioned in the subcompact sedan market, which sees sales of 25,000 to 30,000 units a month. It will take on the likes of Maruti Suzuki Dzire and Honda Amaze. The company aims to produce about 150 Ameos a day. With the Vento and Polo monthly volumes taking a hit, VW is now betting on Ameo to bring in decent incremental volumes.

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What this means

Volkswagen's recall approval for its Indian EA 189 diesel engines is a critical step towards rebuilding consumer trust and sales, which suffered significantly following the Dieselgate scandal. This move directly addresses the 2.4% domestic volume decline in 2015, which stands in contrast to the strong double-digit growth prior to the controversy. While rivals like Maruti Suzuki and Honda dominate the subcompact sedan segment Volkswagen's Ameo aims for, resolving the existing engine issues is paramount. The company's focus on the Ameo, a dedicated made-for-India product with a Rs 720 crore investment, will only gain traction once the public perceives the emissions crisis as contained. The risk lies in any further delays or ineffective fixes, which would severely jeopardise Volkswagen's planned 15% output growth. The market will be watching the actual commencement of the recall by July.

Wei Zhang

Questions & Answers

What kind of fix will the 1.5-litre and 1.6-litre EA 189 engines receive?

The article states that the 1.5-litre and 1.6-litre EA 189 engines will receive both a software update and a hardware fix to address the issue. This differs from the 1.2-litre and 2-litre engines, which only need software updates.

How many vehicles in India are affected by the dieselgate scandal and require this fix?

There are 3.23 lakh vehicles in India that have been sold with the EA 189 family of engines and will have the solution applied once local authority approval is received. This constitutes a significant recall effort for Volkswagen.

When does Volkswagen expect to complete the entire recall process for all affected vehicles?

Volkswagen India's managing director expressed hope that fixes on all vehicles will be concluded by the end of the year. The company is aiming to complete the process within six to eight months after starting.

How has the dieselgate controversy impacted Volkswagen's sales performance in India?

Domestic volume for Volkswagen India declined by 2.4% to 43,152 units in 2015, following strong sales in the first nine months of that year. The company's image took a major hit globally.

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