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New VW SUV designed specially for India to compete with the likes of Hyundai Venue, Maruti Brezza, and Tata Nexon
After nearly two years of deliberation, Volkswagen has finally confirmed plans to launch a compact SUV in India. Needless to say, the new model will be based on the MQB A0 IN platform. Volkswagen (Passenger Cars) CEO Thomas Schäfer recently arrived in India to discuss the brand’s future strategy for the market. During his interaction with the local media, Schäfer confirmed the company will launch a new compact SUV in India in 2027. Volkswagen will derive this model from the Skoda Kylaq, which has been Volkswagen Group’s most successful new model in India this decade, reaching the 50,000 sales milestone in just one year.
Volkswagen’s upcoming compact SUV will be its first ICE model since the Polo’s discontinuation in 2022 to be able to take advantage of India’s lower GST rate on cars that measure not longer than 4,000 mm in length and have an engine with a displacement of not more than 1,200 cc (petrol)/1,500 cc (diesel). In September last year, the government reduced the GST on such models from 29% (petrol)/31% (diesel) to just 18%.
In addition to the Skoda Kylaq’s success, the significant reduction in GST made a stronger business case for the new compact SUV. This model should help Volkswagen significantly grow its sales in the coming years. Sub-4 metre models make up nearly 28% of the entire Indian car market, Schäfer said, stressing the need to re-enter the segment.
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Volkswagen already offers an SUV similar to the one it plans to launch in India in Latin America. Called ‘Tera’, this model is manufactured at the company’s plant in Taubaté, Brazil. From 2027, it will also be built as ‘Tengo’ in Kariega, South Africa. Volkswagen differentiates it from Skoda’s Kylaq with a sportier and more conventional exterior.
The Tera measures 4,147 mm in length, 1,777 mm in width, and 1,478 mm in height, along with a 2,566 mm wheelbase. Whether Volkswagen designs a shortened version of this model or a completely new top hat for the sub-4 metre compact SUV planned to be launched in India remains to be seen.
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We expect Volkswagen to offer features such as full-LED headlights, 16-inch alloy wheels, LED tail lights, a 10.1-inch touchscreen infotainment system, an 8-inch driver information display, four USB Type-C ports, a wireless smartphone charger, and ventilated front seats with 6-way power adjustment on the driver side. A 1.0-litre TSI turbocharged three-cylinder petrol engine producing 114 hp and 178 Nm of torque should be standard, although a CNG version could be introduced at a later stage. 6-speed manual and automatic will likely be the transmission choices.
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