The third generation of Volkswagen Caddy debuted at the end of 2003, with production commencing in May 2004. The Typ 2K shares 50% of its modules with the Volkswagen Golf Mk5 and Volkswagen Touran.

The vehicle was fitted with the R100, RCD300 or RNS MFD-2 head unit. The vehicle is on PQ Quadlock connection.