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Volkswagen compact SUV is expected to go on sale next year and it will sit on the familiar and heavily localised MQB A0 IN platform
Volkswagen is said to be developing a new compact SUV for India that could become its most important volume product in years. The project has now received global approval and is estimated to cost around 25 million euros (Rs. 275 crore). Based on the Skoda Kylaq, the upcoming model will announce Volkswagen’s return to the sub-four-metre segment giving the brand a product positioned below the Taigun
The timing is particularly significant because compact SUVs have become one of the biggest volume pools in India’s PV market. The 3.8–4.0-metre SUV segment recorded 397,609 units in Q1 FY2027 – up 24 per cent year-on-year according to industry data. July alone saw 116,552 units with 34.67 per cent growth over the same month last year.
Tata Punch led the segment at 21,313 units followed by Maruti Fronx at 19,473 and Tata Nexon at 17,471 units. The opportunity also explains why Volkswagen cannot rely solely on the Taigun and Virtus for volume. The brand has products such as the Polo GTI and Tayron serving the premium end in limited batches but their role is naturally different from a sub-four-metre SUV positioned around the Rs. 8 lakh bracket.
The Taigun and Virtus have built Volkswagen’s presence in the midsize space yet a smaller SUV could give the company access to a substantially larger customer pool. The Kylaq itself has shown that the platform can compete in this market recording 11,571 units during Q1 FY2027. The upcoming Volkswagen will share its engineering and powertrain package with the Kylaq.
The 1.0-litre TSI three-ply turbo petrol engine will be carried over – coupled with manual and automatic transmission options. One notable change is expected to be the automatic gearbox as the Volkswagen is slated to receive an eight-speed automatic from launch instead of the six-speed automatic currently offered on the Kylaq. The Kylaq is also expected to receive the newer gearbox during its next update.
The Brazilian-market Volkswagen Tera offers an indication of where the Indian project could sit in the brand’s global portfolio but the India-spec SUV is expected to receive market-specific changes. Local production should help Volkswagen target a price range of around Rs. 8 lakh to Rs. 13 lakh (ex-showroom) putting it directly against the Punch, Fronx, Nexon, Venue, XUV 3XO, Sonet and Kylaq.
The post Volkswagen Compact SUV For India Confirmed To Be In The Works – Under Rs. 10 L appeared first on Gaadiwaadi.com - Latest Car & Bike News by Surendhar M.
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