The German brand Volkswagen is set to introduce its most budget-friendly SUV model to the Indian market. This vehicle will be based on the most compact model from Volkswagen's sister brand—the Skoda Kylaq. Earlier reports had surfaced regarding this project.
The company intends to enter the compact SUV segment with this new model. Volkswagen India has received global approval to proceed with this project. According to an Autocar India report, the estimated cost of the project is 2.5 million euros, equivalent to approximately 275 million rupees.
The launch of this vehicle will allow the Volkswagen Group to re-enter the high-volume segment of vehicles under four meters in India. Previously, the company exited this segment after discontinuing the production of the Polo and Ameo models.
This new car will play a vital role in expanding the company's portfolio in the Indian market. After the arrival of this model, consumers will have an alternative to the Volkswagen Tiguan and Virtus, which will be positioned lower on the price ladder. Although this vehicle will be a rebranded version of the Skoda Kylaq, significant changes may be made to its design.
It is expected that the engine of the vehicle will not be changed; it will be equipped with the same 1.0-liter TSI gasoline engine used in the Kylaq. The SUV may be available with either a manual or automatic transmission. An 8-speed automatic transmission is possible, whereas the Kylaq uses a 6-speed automatic gearbox.
It is unclear how Volkswagen will name this SUV. The company sells a similar SUV in Brazil—the Volkswagen Terra, which is related to the Skoda Kylaq. The name of this car in India will be announced later. The company might launch it at a price ranging from 8 to 13 lakh Indian rupees, including exterior costs.
The compact SUV segment is currently one of the most popular. Cars under 4 meters are in high demand. Monthly sales in this segment currently reach 1.1 lakh units. Thus, Volkswagen has a chance to succeed with this model. Its competitors will include SUVs such as the Maruti Suzuki Brezza and Tata Nexon.
