- Volkswagen is gearing up to launch a new sub-four-metre budget compact SUV in India soon.
- Based on the platform of Skoda Kylak, this upcoming car will get modern features and a powerful turbo engine.
- Priced between Rs 8 and 13 lakh, the car will challenge the likes of Tata and Maruti.
Volkswagen is all set to launch a new sub-four-metre compact SUV in India, a project that could turn out to be the company's biggest seller in India. The project, which has received global approval, is expected to cost around 25 million Euros (approximately ₹275 crore). Based on the platform of the Skoda Kylak, the SUV will mark the company's return to the sub-4 meter segment and will be positioned below the Tigun in Volkswagen's portfolio.
Growing demand and market opportunities
The demand for sub-4 meter compact SUVs in the passenger vehicle market in India is growing at a rapid pace. In the first quarter of fiscal 2027, the 3.8 to 4.0 meter SUV segment sold 3,97,609 units, up 24 percent from last year. This segment is currently dominated by Tata Punch, Maruti Franks and Tata Nexon. Since Volkswagen can't just rely on the Tygun and Virtus in India, this new SUV with a budget of around ₹8 lakh will help the company connect with a larger customer base.
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engine, Performance and a new automatic gearbox
The engineering and powertrain of the new Volkswagen SUV will be similar to the Skoda Kylak. It will be powered by a 1.0-litre TSI 3-cylinder turbo petrol engine, which will come with manual and automatic gearbox options. The key change is that the bike is likely to get a torque converter 8-speed automatic gearbox instead of the 6-speed from the start, which may be updated later on in the Skoda Kylak as well.
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Design and estimated cost
The design of the Indian model may be based on the Volkswagen Terra available in the Brazilian market, but it will undergo some special modifications to suit Indian roads and customer needs. As it will be manufactured locally, Volkswagen can price the car ex-showroom between ₹8 lakh and ₹13 lakh. The new SUV will go head-to-head with the likes of the Tata Punch, Maruti Franks, Tata Nexon, Hyundai Venue, Mahindra XUV 3XO, Kia Sonet and Skoda Kylak when it hits the market.