TL; DR
- Volkswagen secures global approval for a compact SUV based on the Skoda Kylaq.
- Expected to cost ₹8-13 lakh, sharing the 1.0L TSI engine with an 8-speed automatic option.
- Marks VW’s return to the sub-4m segment since the Polo was discontinued in 2022.
Following the success of Skoda’s Kylaq, Volkswagen has secured internal global approval to build a compact SUV for India, and if you’ve already guessed it, it will be based on the Skoda Kylaq. This will mark the brand’s return to the sub-four-meter segment about four years after the Polo and Ameo were discontinued in India.
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Volkswagen Upcoming SUV: Pricing & Availability
Volkswagen hasn’t confirmed a launch date, name, or final pricing for the SUV yet. However, industry estimates place it somewhere around ₹8-13 lakh. I’m talking about the ex-showroom price here; the on-road price could differ based on the variant, dealership, and the city you purchase the car in.
And yes, I’m thinking about the same thing as you are: Volkswagen’s sub-four-meter SUV will share its pricing with the Kylaq, similar to how the Venue shares its pricing with the Sonet, or the Creta with the Seltos. The approved project reportedly carries a budget of roughly €25 million (around ₹275 crore).
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Volkswagen Upcoming SUV: Key Features & Specifications
The SUV will essentially be a re-skinned Kylaq underneath. However, Volkswagen plans slightly different exterior and interior elements and styling to separate its appearance and feel from Skoda’s version. This also extends to features and market positioning.
Power will come from the same 1.0-liter TSI petrol engine, which will be offered with manual and automatic gearbox choices. What’s worth mentioning here is that Volkswagen’s version will most likely debut with the 8-speed automatic rather than the Kylaq’s current 6-speed unit on the AT trims.
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The car will slot in below the Taigun, giving Volkswagen its first genuinely mass-market local product since exiting the segment.
| Detail | VW Compact SUV |
| Based On | Skoda Kylaq |
| Segment | Sub-4m compact SUV |
| Engine | 1.0L TSI petrol |
| Gearbox | Manual / 8-speed automatic |
| Project Cost | ~₹275 crore |
| Expected Price | ₹8-13 lakh (ex-showroom) |
| Expected Positioning | Below Taigun |
| Name | Not yet confirmed |
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I think the timing here matters as much as the approval itself. India’s sub-four-meter SUV segment now drives roughly 30% of all passenger vehicle sales, largely helped along by last year’s GST cut on smaller cars. Further, Kylaq has proved to be very successful for Skoda India 2.0’s ambitions, and its clear that Volkswagen wants a piece of it.
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