Volkswagen will launch the compact SUV next year.

Volkswagen's sub-4-metre SUV to rival Kylaq, Venue, Nexon, launch in 2027

Volkswagen will enter India's sub-4-metre SUV segment in 2027 with a new locally made model based on the MQB-A0-IN platform, sharing its underpinnings with the Skoda Kylaq.

by · India Today

Volkswagen is set to enter India’s fiercely competitive sub-4-metre SUV segment with an all-new compact SUV in 2027. The upcoming model will be locally manufactured and positioned as the brand’s most accessible SUV in India, as Volkswagen looks to expand its customer base and strengthen its presence in one of the country’s highest-volume passenger vehicle segments.

The new Volkswagen SUV will be based on the MQB-A0-IN platform, which underpins the brand’s existing India portfolio as well as models from sister brand Skoda. The platform has been specifically adapted for India with a focus on high localisation, lower ownership costs and efficient production.

While Volkswagen has not revealed the SUV’s name or detailed specifications yet, the upcoming model is expected to share significant components with the Skoda Kylaq. The Kylaq has emerged as an important model for Skoda in India and has helped the Czech brand strengthen its position in the market.

The Volkswagen SUV is also expected to use the same 1.0-litre TSI turbo-petrol engine as the Kylaq. In the Skoda, this engine produces 115bhp and 178Nm and is offered with a 6-speed manual or a 6-speed automatic transmission. Volkswagen is yet to confirm the powertrain specifications for its upcoming SUV.

The new model will be developed in India with inputs from Volkswagen Group engineering teams in India and Europe. The company says the SUV will be tailored to Indian customer preferences and will focus on Volkswagen’s traditional strengths of driving dynamics, safety and build quality.

Volkswagen Passenger Cars brand CEO Thomas Schäfer said the new compact SUV is an important step in the company's India strategy and will bring its global engineering expertise to a segment that is particularly important to Indian buyers.

Piyush Arora, Managing Director and CEO of koda Auto Volkswagen India, said the model will be developed and produced in India, further strengthening the country’s role as a manufacturing and development hub for the Volkswagen Group.

For Volkswagen India, the launch will also mark its entry into the sub-4-metre SUV space, where rivals such as the Hyundai Venue, Tata Nexon, Maruti Suzuki Brezza, Kia Sonet and Skoda Kylaq compete. The segment is among the most important in India's SUV market, making the upcoming Volkswagen a key model for the brand.

The new SUV will be Volkswagen’s latest product based on the MQB-A0-IN architecture and is expected to share its underpinnings, powertrain and several components with the Kylaq. However, Volkswagen is likely to give it a distinct design and cabin treatment to differentiate it from its Skoda sibling.

With the new compact SUV, Volkswagen is aiming to bring its German-engineered positioning to a wider audience while increasing volumes in India. The company is expected to reveal more details about the SUV closer to its 2027 launch.

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