Volkswagen has been missing from one important space in India for a while now. While the brand has SUVs, such as the Taigun and Tiguan, it does not have a compact SUV below four metres. That gap is finally about the be filled.
According to sources in the industry, Volkswagen is developing an all-new compact SUV for India and it is expected to be launched around mid-2027. This will be Volkswagen’s first proper entry into the sub-4-metre SUV space, which sees huge demand every year. It is also the segment in which Skoda already has the Kylaq.
For the Indian buyers, this move seems long overdue. Volkswagen used to have some good mass market models such as Ameo sedan and the legendary Polo hatchback. Both were compact, well built and popular with enthusiasts. This upcoming SUV is expected to carry forward some of that old Volkswagen appeal, but in a body style that today’s buyers prefer.
Globally, Volkswagen already sells a compact SUV called the Tera in markets like Brazil, and the India-bound model is expected to be closely related to it, with changes made for local needs.

Design and positioning
Like the Taigun and Kushaq, the new Volkswagen SUV is expected to share its base with the Skoda Kylaq. However, it will not look the same.
Volkswagen is likely to give it a unique identity with
- Different front grille and bumper design
- New LED headlamps and tail-lamps
- Sportier GT Line versions with the blacked-out elements
- Slightly different interior layout and trim selections
Being the newer product, the Volkswagen version may also get a few extra features during launch. These may be added to the Kylaq later during its facelift.
Engine and gearbox options
Under the hood, the compact SUV is expected to have the familiar 1.0-litre TSI turbo-petrol engine. This motor already does duty in cars such as the Kylaq, Kushaq and Taigun.
Expected details include
- Power output of approx. 114hp and 178Nm
- 6-speed manual gearbox as standard
- New 8-Speed Torque converter automatic option
The 8-speed automatic has already made its debut in the Kushaq facelift and is expected to be an important upgrade from the older unit, especially for city use.
Features and pricing
Feature-wise, Volkswagen is expected to play it safe but competitive. Likely highlights include
- Large touchscreen infotainment system
- Digital instrument cluster
- Sunroof
- Ventilated front seats on higher variants
- Safety tech like ESP, hill hold assist and cruise control
Pricing is expected to begin from around Rs 9 lakh and rise up to about Rs 16 lakh depending on the variant.
What that means for Volkswagen
This compact SUV has the potential to be a volume driver for Volkswagen in India. With revised rules for GST on small cars and good demand in this segment, the time looks right.
More importantly, it is Volkswagen’s return to the affordable, everyday car space which the Polo represented before. If done correctly, this SUV could give the brand the mass appeal it has been lacking for years.
