CARIAD, part of Volkswagen Group, has announced a major shift: the company will now design and produce its own power inverters for electric vehicles.
At the IAA Mobility 2025 show, Volkswagen Group’s CARIAD division revealed plans to take full control of developing and manufacturing power inverters—the critical devices that convert the direct current from a battery into alternating current for electric motors. The efficiency and quality of these inverters directly affect an EV’s range and performance, which is why Volkswagen has decided to bring this technology in-house rather than rely on outside suppliers.
Over the past three years, engineers from CARIAD and Volkswagen Group Technology have worked on a new generation of inverters, focusing not only on hardware but also on software. According to the company, advanced software is what unlocks the full potential of power electronics, making electric vehicles more efficient, responsive, and technologically advanced.
The new system is modular by design, allowing it to fit a wide variety of models across the VW Group lineup—from affordable city cars like the rumored VW ID.Polo, to concept crossovers such as the Cross Concept, sporty Cupra Laval editions, and even the Skoda Epic. In the future, the inverter will also support high-performance sports cars producing over 800 horsepower.
By developing its own inverter technology, Volkswagen aims to secure a competitive edge and greater flexibility for its electric vehicles in a rapidly evolving automotive landscape.