Volkswagen plans sub-4m SUV to enter India’s compact segment
Volkswagen is developing a new sub-4-metre SUV for the Indian market, with sources indicating a launch timeline around mid-2027. The model would give the brand an entry into the high-volume compact SUV segment, an area where its sister marque already has a presence.
While Skoda Auto currently competes in this space with the Kylaq, Volkswagen itself does not yet have a direct offering below four metres. The upcoming SUV is expected to fill that gap and benefit from revised GST structures that continue to favour compact vehicles, potentially allowing for competitive pricing.
In the near term, Volkswagen’s India lineup will expand with the introduction of models such as the Tayron, Tayron R-Line, a fresh batch of the Golf GTI and updates to existing sedans and SUVs. The compact SUV is part of a longer-term portfolio strategy aimed at strengthening the brand’s reach in core segments.
Volkswagen’s approach is likely to follow the template already seen with the Taigun and its Skoda counterpart, where both vehicles share architecture but maintain distinct visual identities. A similar formula could be applied to the new compact SUV.
The Volkswagen version is expected to feature brand-specific styling elements, including a unique grille, lighting signatures and revised bumpers. Changes to the tailgate panel and interior detailing are also likely, helping differentiate it from its Skoda sibling. Variant strategy may vary as well, with sportier trims featuring darkened exterior accents potentially forming part of the lineup.
Sources suggest the Volkswagen model could debut with a slightly richer feature list than its Skoda equivalent, though equipment parity may arrive later as both products evolve through lifecycle updates.
The most probable engine option is the 1.0-litre three-cylinder turbo-petrol unit already used within the group’s compact offerings. Transmission choices are expected to include a manual gearbox and a torque-converter automatic, broadening appeal in urban markets.
Final technical details remain unconfirmed, but shared powertrain strategy would help Volkswagen manage costs and streamline manufacturing, an important factor in the price-sensitive compact segment.
The compact SUV class continues to be one of India’s most competitive and highest-volume categories. For Volkswagen, entering this space would mark a strategic shift toward greater localisation and stronger participation in mainstream segments rather than niche positioning alone.
If timelines hold, the new SUV could play a central role in Volkswagen’s medium-term India growth plans, sitting alongside existing models and reinforcing the brand’s footprint in entry and mid-level price brackets.
