The 3.0-litre diesel accounts for 68% of all Touareg sales and has been retuned to give it a power boost of 13bhp to a total of 238bhp and the available torque from 369 lbs ft to 406 lbs ft.
Despite the enhancements, carbon dioxide output has dropped from 278g/km to 262g/km.
The 3.0-litre V6 engine is linked to a six speed tiptronic gearbox and four-wheel drive.
The new Euro V compliant engine also features a diesel particulate filter (DPF) in the exhaust system, and joins the existing 2.5-litre TDI and 5.0-litre V10 TDI diesel and 3.6-litre V6 petrol engines in the Touareg range.
The new engine will be available in three trim levels – Touareg, SE and Altitude – all of which come with a comprehensive list of standard equipment.
Prices for the new Touareg 3.0-litre V6 TDI start at £33,465, on-the-road, rising to £36,865 for the SE model and £39,665 for the range-topping Altitude trim level.