Volkswagen to Re-enter Indian Sub-Four-Metre Segment with New Compact SUV by 2027

Volkswagen India is set to return to the highly competitive sub-four-metre segment with the launch of an all-new compact SUV scheduled for mid-2027. This move aims to fill the void left by the departure of the Polo hatchback and Ameo sedan, leveraging the brand’s shared MQB-A0-IN architecture. While the model will share its foundation with the Skoda Kylaq, Volkswagen is expected to position its version with distinct styling and a more comprehensive equipment list.

Mechanical Configuration and Performance

The upcoming SUV is anticipated to utilize the group’s proven 1.0-litre, three-cylinder TSI turbocharged petrol engine. A significant update to the powertrain lineup includes the introduction of a new transmission option:

  • A standard six-speed manual gearbox for enthusiast appeal.
  • A new eight-speed torque-converter automatic transmission, recently debuted in the Kushaq facelift, replacing the older six-speed unit.

This mechanical setup is designed to balance urban drivability with the performance characteristics typical of the brand’s TSI engines.

Design Philosophy and Trim Levels

In line with the existing Taigun and Kushaq relationship, the new Volkswagen SUV will feature brand-specific sheet metal and styling cues to differentiate it from its Skoda counterpart. Key design highlights are expected to include:

  • Redesigned front and rear bumpers and a signature Volkswagen grille.
  • Unique LED lighting signatures for both headlamps and taillights.
  • A revised tailgate design and interior cabin themes.
  • The inclusion of “GT Line” variants featuring darkened exterior accents and sportier trim.

Reports suggest that as the later entrant to the market, the Volkswagen model may debut with a higher level of standard features than the current Kylaq, though these updates may eventually harmonize across both brands during future mid-life refreshes.

Broader Market Strategy

The timing of the launch aligns with Volkswagen’s broader product offensive in India. For the current calendar year, the manufacturer is focusing on premium and niche segments with the following arrivals:

  • The standard Tayron and Tayron R-Line SUVs.
  • A second batch of the Golf GTI performance hatch.
  • Mid-life facelifts for the Virtus sedan and Taigun SUV.

The compact SUV’s pricing is expected to be competitive, potentially benefiting from favorable GST structures for vehicles under four metres in length, allowing Volkswagen to challenge established incumbents in the segment.

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