Volkswagen has officially secured global approval for a 25 million euro (approximately Rs 275 crore) project to introduce a new sub-four-metre compact SUV to the Indian market. This upcoming model will be heavily based on the Skoda Kylaq but will undergo substantial exterior and interior design changes, along with unique feature additions, to ensure it maintains a distinct Volkswagen identity. While the official name for the Indian market remains unconfirmed, a closely related model is currently sold in Brazil as the Volkswagen Tera.
Under the hood, the new SUV will be powered by the same 1.0-litre TSI petrol engine found in the Kylaq. It will be offered with both manual and automatic transmission options, notably featuring an 8-speed automatic gearbox at launch rather than the 6-speed automatic currently seen on the Skoda counterpart. The vehicle is expected to be priced competitively between Rs 8 lakh and Rs 13 lakh (ex-showroom) and will be positioned below the existing Taigun and Virtus models in the company’s lineup.
This strategic launch marks Volkswagen’s return to India’s high-volume sub-four-metre segment, a space it vacated after discontinuing the Polo hatchback and Ameo sedan. By re-entering a category that accounts for a significant portion of India’s passenger vehicle sales, Volkswagen aims to reach a broader customer base while simultaneously improving capacity utilization and economies of scale at the Skoda Auto Volkswagen India manufacturing plant in Chakan.
