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Volkswagen's new virtual car development strategy cuts time and costs

Usage of digital prototypes for testing has helped VW reduce costs and development period.
2 min read31 Oct '25
Akbar MerchantAkbar Merchant
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Volkswagen ID GTI concept

Volkswagen ID. GTI concept used for representation only.

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Volkswagen has introduced a new model development strategy that focuses on efficiency by expanding the use of digital development tools. This is said to help reduce the number of road tests done with physical prototypes.

  1. New strategy said to significantly reduce new model development time
  2. VW has built 40 percent fewer prototypes in 2024
  3. India will get a Kylaq based VW compact SUV in 2026

In a recent conversation with Automotive News Europe's sister magazine Automobilwoche, Kai Grunitz, Volkswagn’s head of technical projects, expounded on this new model development strategy. 

VW's goal with the new strategy is to complete the design of an all-new model, based on an existing platform, in 30-36 months. This process currently takes around 48-60 months and could delay the market introduction of models that need updates, making it outdated by the time it arrives.

This reduction in development time will be facilitiated by lesser number of tests conducted in real environments. In 2024, Volkswagen says they've built 40 percent fewer prototypes than earlier as most tests are conducted in indoor setups, using software and virtual simulations depicting real world scenarios.

The company says that these virtual tests not only reduce development costs, but also have the same safety and quality standards as physical real world tests. This new strategy, according to estimates, will help the brand save more than Euro 1 billion (about Rs 8,900 crore) by 2028.

Volkswagen India’s game plan

While it is not known if VW India will use new testing strategy for our market, the brand will introduce the new Tayron SUV sometime next year. Additionally, an all-new compact SUV based on the recently launched Skoda Kylaq, is also in the works.

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