Volkswagen Compact SUV Confirmed For India - Based on Skoda Kylaq

Published ByAmit Sharma

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2026-08-13

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Volkswagen Compact SUV Confirmed For India - Based on Skoda Kylaq

Volkswagen to launch Kylaq-based SUV in 2027 It will get the 1.0L TSI with an 8-speed AT

We reported earlier that Volkswagen is preparing a new sub-4 meter SUV for the Indian market. The new model will be based on the same MQB AO IN platform that also underpins the Skoda Kylaq. A new media report claims that Volkswagen India has secured global approval for the project, which is likely to cost around 25 million euros (Rs 275 crore). This approval will make way for the German automaker to re-enter the high-volume sub-4 meter segment, which VW had exited following the discontinuation of the Ameo and Polo hatchback.

The new compact SUV will sit below the Taigun in Volkswagen India’s line-up, and will target the high-volume segment dominated by Tata Nexon, Maruti Brezza, Hyundai Venue and Kia Sonet. The new compact SUV will be a badge-engineered version of the Skoda Kylaq, but will receive substantial design changes to give it a different design. The SUV is likely to receive a significantly revised cabin and features.

The new Volkswagen compact SUV will be powered by a 1.0-litre, 3-cylinder, TSI petrol engine that also powers the Kylaq. Transmission choices will include an 8-speed torque converter automatic unit and a 6-speed manual gearbox. The Kylaq is also expected to receive the 8-speed AT with its next update.

It was speculated to be called the Volkswagen Tera, which is already on sale in the Brazilian market. This sub-4 meter SUV is closely related to the Skoda Kylaq, as both shares the same platform and the 1.0L turbo petrol engine. The new VW compact SUV is expected to be priced in the range of Rs 8 lakh to Rs 13 lakh, ex-showroom.

The sub-4 meter SUV category currently accounts for around 30 per cent of India’s passenger vehicle sales, and contributed more than half of utility vehicle volumes. The sub-4 meter SUV attracts lower GST of 18 per cent compared to the 28 per cent rates on cars measuring above 4 meters in length.

Source - AutoCarIndia

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Amit Sharma

Sub-Editor

Amit is responsible for the content creation on the Carlelo website with an objective to serve the online visitors to the best of his abilities. He has a vast experience of over 12 years in motoring journalism and has worked with multiple automotive brands including CarDekho, IndiaCarNews and Zee Network (India.com Auto)

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