Volkswagen Confirms New Sub-4-Metre SUV To Rival Tata Nexon, Maruti Brezza By 2027

German carmaker Volkswagen has confirmed a new sub-4-metre SUV for the Indian market, with the compact model set to arrive by 2027. The upcoming Volkswagen SUV will be built on the same India-specific MQB A0 IN platform that underpins the Skoda Kylaq.

The new VW SUV will rival the Tata Nexon, Maruti Brezza, Hyundai Venue, and Mahindra XUV 3XO, and will become Volkswagen's smallest and most affordable SUV in India. The Taigun currently holds that position in the brand's lineup.

Brazil-spec VW Tera Pictured

Volkswagen's Sub-4-Metre SUV: Platform And Engine

Commenting on the announcement, Thomas Schäfer, CEO, Volkswagen Passenger Cars Brand, and Member of the Board of Management of Volkswagen AG, said,"India is a market of enormous scale and ambition, and this new compact SUV marks an important step in Volkswagen's journey here. We are bringing our global expertise in building cars that people love to drive and own into a segment of great importance to Indian customers. This model is being developed specifically for India, and it reinforces our long-term commitment to the Indian market as part of our global growth strategy."

The compact SUV is being developed specifically for India, with Indian and European engineering teams working on the project together, Volkswagen said. It shares its platform with the Skoda Kylaq, though Volkswagen says the new SUV will get its own design and positioning to set it apart from its Skoda sibling. The carmaker has not revealed the model's name, exterior design, or exact launch date yet.

The 1.0-litre TSI turbo-petrol engine that powers the Kylaq is expected to carry over to the new VW compact SUV. On the Kylaq, this engine produces 114bhp and 178Nm of torque and is paired with manual and automatic gearbox options. Volkswagen has not confirmed whether the new SUV will retain identical outputs or gearbox choices.

Why The Sub-4-Metre VW SUV Matters

The sub-4-metre segment is one of the largest in the Indian passenger vehicle market, and entering it gives Volkswagen access to tax benefits meant for cars under four metres in length. This allows for more competitive pricing than the brand has offered before. Volkswagen discontinued the Polo hatchback four years ago and has since focused on larger SUVs and sedans, leaving it with no presence at the budget end of the market since.

The Kylaq, which shares its platform with the upcoming Volkswagen SUV, has gone on to become Skoda's bestselling model in India, reinforcing the case for a compact SUV in Volkswagen's own lineup. Renewed GST slabs that have made smaller cars more attractive further support the timing of this move.

Volkswagen currently sells five models in India, including three SUVs, the Taigun, Tayron, and Tiguan R-Line, along with the Virtus sedan and the Golf GTI hatchback. A Virtus facelift is also expected to arrive later this year. More details about the new sub-4-metre SUV, including its name and design, are expected closer to its market launch.