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Business / Fri, 21 Aug 2026 CarWale

Volkswagen Confirms Plans to Launch New Sub-4-metre SUV by 2027

The carmaker has confirmed plans for a new sub-four-metre SUV based on the Skoda Kylaq, positioning it as a direct rival to the Hyundai Venue, Tata Nexon, Mahindra XUV 3XO, and other compact SUVs. The new model will become Volkswagen’s smallest SUV in India and lower the brand’s entry point significantly. At present, the Taigun is the smallest Volkswagen SUV on sale in the country. With the Kylaq already establishing a presence in this space for Skoda, Volkswagen will now get its own offering without having to develop an entirely new platform. More details about the Volkswagen compact SUV, including its name, design and launch timeline, are expected to be announced closer to its market introduction.

To be Volkswagen’s new entry-level SUV

Will be powered by the 1.0-litre TSI petrol engine

Volkswagen is finally set to enter one of the most competitive segments in the Indian car market. The carmaker has confirmed plans for a new sub-four-metre SUV based on the Skoda Kylaq, positioning it as a direct rival to the Hyundai Venue, Tata Nexon, Mahindra XUV 3XO, and other compact SUVs.

The new model will be developed for the Indian market and is expected to arrive by 2027. Volkswagen has not yet revealed its name or launch date. The upcoming SUV will use the same India-specific MQB A0 IN platform as the Kylaq. While the mechanical package is expected to be shared, Volkswagen says the new model will have its own design and positioning to distinguish it from its Skoda sibling.

The 1.0 litre TSI turbo petrol engine is expected to be carried over as well. On the Kylaq, this engine produces 114bhp and 178Nm and is available with manual and automatic gearbox options. The new model will become Volkswagen’s smallest SUV in India and lower the brand’s entry point significantly. At present, the Taigun is the smallest Volkswagen SUV on sale in the country.

With the Kylaq already establishing a presence in this space for Skoda, Volkswagen will now get its own offering without having to develop an entirely new platform.

More details about the Volkswagen compact SUV, including its name, design and launch timeline, are expected to be announced closer to its market introduction.

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