
The European Union (EU) is moving toward stricter Euro 7 emission norms. Set to kick in on November 29th, these will bring about major strategic changes among manufacturers. Volkswagen Group will reportedly discontinue three-cylinder petrol engines on SEAT and Skoda models. All transverse engine cars will only come with four-cylinder engines. These will be made available even in mild and full hybrid forms.

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Volkswagen Group currently offers three cylinder turbocharged petrol engines on several cars in EU markets like Germany, the UK, Czech Republic, Hungary, and Romania. Models like the Polo, T-Cross, T-Roc, Skoda Fabia and Skoda Kamiq have three-cylinder variants on sale. Many of these cars are currently awaiting updates. According to latest reports, Volkswagen will pull the plug on these.
Going forward, almost all mass-market models with transverse engines will rely only on 1.5-litre and 2.0-litre four-cylinder engines. The decision aligns with the brand’s push to simplify engine families and improve efficiency under tighter emission regulations.
More niche engines are also being phased out to ensure compliance. A recent example is the five-cylinder unit in the Audi RS3.

Under the revised strategy, Volkswagen Group will focus on offering just three core engines across its mass-market lineup. One would be the 1.5-litre TFSI turbo petrol, used in cases which demand power in the range of 100hp-150hp. This engine comes equipped with a variable geometry turbocharger and runs on Miller cycle for improved efficiency. Currently, models like the T-Roc already have it.
For higher performance needs, there is the 2.0-litre TSI turbo petrol, capable of producing up to 333hp. It is now used in models like the Golf R. The third engine is the 2.0-litre TDI. It is now offered on multiple Skoda and Volkswagen models, and is available in multiple states of tune- producing 116 hp to 193 hp. Outputs may be adjusted slightly to meet Euro 7 norms.

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Electrification will be central in the new engine strategy. The 1.5-litre engine is already available with mild-hybrid and plug-in hybrid setups. Strong hybrid set-ups are expected to be introduced in the future.
The upcoming hybrid setup could use a new epicyclic gear transmission. It is similar to what Toyota offers on some of its strong hybrid models.
However, Volkswagen will likely tune its transmission differently to simulate gear shifts. Rumours also suggest that the carmaker could come up with a strong hybrid set-up based on the 2.0L engine. This will be used in larger and heavier models.

Let’s now take the case of the Indian market. Three-cylinder engines are offered on several Volkswagen and Skoda cars like the Kushaq, Slavia, Kylaq, Taigun, and Virtus. These are all bread and butter models- vehicles that actually bring volumes and revenue to the brands.
By standardising engine sizes, Volkswagen Group can streamline production, reduce costs and meet stricter emission norms more effectively.
Even in India, the BS7 norms are expected to come into effect between 2026 and 2027. These are expected to be effectively equivalent to Euro 7 norms. We can thus expect the Group to bring the new engine strategy to India as well. If so, the aforementioned models will only be available with the 1.5 TSI petrol engine.
It remains to be seen what direction the Kylaq would take under the new strategy, as it is only available with the 1.0TSI engine. The transition to 1.5L engines and potential introduction of hybrid technology will all push the prices of these models upward.