Volkswagen plans to introduce a new model to the Indian market that will be the brand's smallest SUV. It is anticipated that its starting price could be below 10 lakh rupees. This compact crossover is slated for release in 2027 and will be equipped with powerful features.
Information about the upcoming vehicle surfaced last week when the company received global approval. The brand has now officially confirmed the release of this model. The new car will be a variant of the Skoda Kylaq.
Like the Kylaq, this car will be built on the MQB-A0-IN platform, and Volkswagen plans to manufacture it directly in India. Thomas Schäfer, Volkswagen's executive director for passenger cars, stated that 'this model will be developed specifically for India.'
Although the official name of the vehicle is not yet known, the company's portfolio includes the Volkswagen Tera, presented in Brazil, which is largely similar to the Kylaq. There is a possibility that the company will introduce this model in an Indian version, but there are no official confirmations at this time.
The new SUV will allow the company to target the segment with a market value of 8 to 13 lakh rupees, where there is high demand for compact crossovers. Furthermore, it will mark the company's return to the sub-four-meter vehicle segment, as VW currently lacks vehicles of this size in its portfolio.
It is expected that the future Volkswagen SUV will feature a 1.0-liter TSI engine, which is also used in the Kylaq. The brand will offer both manual and automatic transmissions; possibly an 8-speed automatic transmission, unlike the 6-speed automatic in the Kylaq.
There is a possibility that the new Volkswagen SUV will be a rebranded version of the Skoda Kylaq. Nevertheless, even in that case, the company will give it VW branding. The main differences between the two models will lie in the exterior, interior, configuration, and positioning. Until now, Volkswagen has avoided this market segment.
Following the success of the Kylaq, the brand decided to re-enter this segment. In 2025, Skoda sold 45 thousand units of the Kylaq, making it the largest seller for VW Group in India. This new model will directly compete with the Tata Nexon and Maruti Suzuki Brezza.