
Volkswagen officially confirmed the return of its flagship sedan, the Phaeton, targeting the luxury car market again. Initially launched in 2002 and discontinued in 2016, the Phaeton is set to return in 2026 as an all-electric and plug-in hybrid vehicle, ready to compete directly with rival German luxury sedans such as the Mercedes S-Class and BMW 7 Series.
According to outlets like AutoEvolution, the second-generation Phaeton will debut as a high-end electric sedan featuring advanced electrification and premium interior technology. Volkswagen aims to elevate its brand image by sharing technology with Porsche and Lamborghini within the group.


Massive 5.3-Meter Body Engineered for Aerodynamic Efficiency
The new Phaeton is 5,300 mm (208.7 in) long, 1,950 mm (76.8 in) wide, and 1,460 mm (57.5 in) high. It will launch as a long-wheelbase, single-variant model. While maintaining a traditional three-box silhouette, the vehicle incorporates AAA active aerodynamic technology, which adjusts the body components based on driving speed and conditions to maintain optimal drag performance.
The exterior design reflects electrified luxury with smoother curves and enhanced detailing compared to the original model. Unique wheel designs and a more premium exterior finish give it a distinct identity among competitors like the Mercedes S-Class.
Additionally, since the vehicle has a history of being canceled during development, the design of the prototype from 2022, as shown in the first photo, may be partially reflected.
The Phaeton’s interior features high-end amenities, including adaptive comfort seats, an augmented reality (AR) head-up display, and a center infotainment system with holographic haptic feedback. The seats will also include biometric sensors that monitor heart rate and stress levels, adjusting massage features accordingly.

Introducing Quantum Drive: A New Benchmark in Luxury EV Powertrains
The standout feature is the powertrain. Volkswagen is developing two electrified options: a plug-in hybrid system based on a 4.0-liter V8 shared with Porsche and Lamborghini and a fully electric version using the company’s next-generation Quantum Drive system.
The electric Phaeton is projected to deliver up to 900 horsepower and a driving range exceeding 2,000 km (1,242 miles) on a single charge under WLTP standards, enabled by advanced solid-state battery technology. These specifications could place it ahead of current electric competitors like the Tesla Model S and Mercedes EQS.
Quantum Drive is Volkswagen’s proprietary high-performance EV system, integrating output efficiency, energy recuperation, and fast-charging capabilities.
Volkswagen Group commented that the return of the Phaeton is not about revisiting the past but about showcasing its vision for premium mobility. It aims to push boundaries in design and technology, stepping beyond its image as a mainstream brand to challenge the premium segment. With the success of the ID. series, the Phaeton is expected to be Volkswagen’s flagship in the premium EV sector. Its reception will be a key indicator of whether the brand can compete with established luxury names like Mercedes, BMW, and Audi.