Volkswagen has announced plans to launch a new compact SUV in India in 2026, based on the Skoda Kylaq platform. This move is part of Volkswagen’s strategy to tap into the rapidly growing compact SUV segment in the country, which has seen significant demand in recent years.
Design and Features
The upcoming Volkswagen compact SUV will share the MQB-A0-IN platform with the Skoda Kylaq, ensuring a robust and versatile foundation. The SUV will feature brand-specific styling, with a different top hat compared to the Kylaq, aligning with Volkswagen’s design language. The interior is expected to offer premium materials, advanced infotainment systems, and a host of driver-assistance features, making it a comfortable and safe ride for families.
Powertrain Options
The new compact SUV will be powered by a 1.0-litre turbo-petrol engine, producing 115 PS and 170 Nm torque mated to either a 6-speed automatic or a 6-speed manual transmission. This engine choice is aimed at catering to the preferences of Indian consumers who seek both power and economy. Additionally, Volkswagen may introduce a special “GT” version for enthusiasts, offering enhanced performance and sporty aesthetics.
Market Impact and Competition
The compact SUV segment in India is fiercely competitive, with popular models like the Tata Nexon, Mahindra XUV 3XO, and Hyundai Venue. By launching the Kylaq-based SUV, Volkswagen aims to capture a share of this market and challenge its rivals. The company’s strong brand reputation and commitment to quality and safety are expected to attract buyers who are looking for a reliable and stylish compact SUV.
Our Thoughts
While the sub-4 meter segment is very popular in India, bringing a car in 2026 could be quite late for Volkswagen. There is no doubt that there is still potential for growth, however, by that time, the other brands would have gained a bigger market share. The Kylaq itself is late to the party and Volkswagen has all the tools to bring the car to market earlier. Infact, this particular SUV has already been teased in Brazil which means it is production-ready. Volkswagen could have brought this SUV to India sooner.
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