Volkswagen To Bring A Sportier Kylaq With Sporty Sub-4-Metre SUV

Volkswagen India has announced a return to the most competitive car segment in India. This comes four years after discontinuing the cult-favourite Polo hatchback. After years of speculation, VW has secured global approval to develop a new sub-4-metre compact SUV, which will become its most accessible model. This new VW SUV could cost from as low as Rs 9 lakh and will be closely related to the existing Skoda Kylaq.

Quick read:

• Volkswagen will launch a new sub-4-metre compact SUV in India by 2027.

• It will be based on the Skoda Kylaq's MQB-A0-IN platform and share its 1.0-litre TSI engine.

• Expected ex-showroom pricing is between ₹9 lakh and ₹13 lakh.

• The launch marks VW's return to the volume segment after the Polo's discontinuation.

What Does The Brand Say?

Volkswagen India has officially confirmed that they have started development of a Kylaq competitor. This new SUV is expected to arrive by 2027, and will be built on the MQB-A0-IN platform, which was co-developed and localised for Indian requirements. This platform currently underpins cars like the Volkswagen Taigun and Virtus, as well as sister brand Skoda's Kushaq, Slavia, and the Kylaq.

There have been speculations around VW’s return to the sub-4-metre segment after the arrival of the Kylaq in 2024. Two years later, it has now been confirmed. This new model will be positioned as Volkswagen's smallest and most affordable product. 

Badge Engineering And Cost

The upcoming compact SUV will be a badge-engineered counterpart to the Skoda Kylaq, but Volkswagen insists it will be more than just a simple logo swap. Like in the Slavia and Virtus or the Kushaq and Taigun, the design and identity of each brand is different despite them being similar under the skin. The exterior design and interior packaging will be different in this new VW SUV and will have a sportier theme compared to the Kylaq.

The new SUV 1.0-litre TSI turbo-petrol engine. This engine will come paired with an 8-speed automatic transmission and the option of a 6-speed manual transmission. 

The entire project has an estimated development cost of around 25 million euros, which translates to approximately Rs 275 crore. This investment is made to take on the sub-4-metre car segment which accounts for 1.4 million unit sales annually.

Why Does It Matter?

In a pure business sense, Volkswagen needs to represent itself in this sub-compact segment since this segment on average, sells the most. This is because the sub-4-metre segment is the most favoured under the current tax system and makes car purchases more cost-efficient considering their size and features offered. 

The Segment Rivals

Volkswagen’s new SUV will enter one of the most crowded segments in the Indian automotive market. The list of direct rivals is includes the Tata Nexon, Maruti Suzuki Brezza and Fronx, Hyundai Venue, Mahindra XUV 3XO, Skoda Kylaq, Kia Sonet and the Syros. On the lower end, it will go against the Nissan Magnite and the Renault Kiger.

ZigSays...

VW is known for having among the segment's best driving dynamics and build quality. Continuing this into the hottest-selling segment will be an interesting proposition for many yearning for a Polo replacement, 

The brand's current portfolio in India consists of five models: the Taigun, Virtus sedan, the recently launched Tayron and Tiguan R-line SUVs, and the high-performance Golf GTI hatchback. Let’s wait and watch what VW have up its sleeve for the new sub-compact SUV for India.