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Volkswagen’s new subcompact SUV will arrive by mid-2027. It might borrow engine and features from the Skoda Kylaq.
Volkswagen India is planning to enter the highly competitive sub-4 metre SUV segment by mid-2027. While the company has not revealed any official details about the upcoming model yet, it’s likely to be a rebadged version of the Skoda Kylaq.
The upcoming Volkswagen subcompact SUV is expected to share its platform, powertrains, components and features with the Kylaq. However, it will carry a completely new design language, which could be heavily inspired by the Volkswagen Tera unveiled in March, 2025.
As mentioned above, the new Volkswagen compact SUV could borrow several design elements from the VW Tera sold in the Brazilian market. The SUV is likely to feature a newly-designed grille, new lighting setup, redesigned front and rear bumpers and revised tailgate.
The Volkswagen Tera looks sporty with a black grille, slim headlamps with two-part LED DRL signature, black finished A and B-pillars, rear bumper with gloss black inserts, a bold shoulder line, muscular fenders and connected taillamps.
The interior of the new Volkswagen subcompact SUV is expected to share a strong resemblance with the Skoda Kylaq. On the feature front, the model is likely to offer a an 8-inch digital instrument cluster, a 10-inch touchscreen infotainment system with wireless Apple CarPlay and Android Auto, leather-wrapped steering, keyless entry and go, a sunroof, ventilated front seats, wireless phone charger, leatherette upholstery, tyre pressure monitoring system, cruise control, multiple airbags and several more.
Powering the upcoming Volkswagen compact SUV is likely to be the same 1.0L, three-cylinder petrol engine from the Skoda Kylaq. This motor generates a maximum power of 115bhp and 178Nm of torque. Transmission choices are expected to include both a manual and an automatic. The model might also source its suspension setup and braking system from the Skoda Kylaq.
In the sub-4 metre SUV segment, the new VW SUV will face competition from the Kia Sonet, Hyundai Venue, Maruti Suzuki Brezza, Skoda Kylaq, Mahindra XUV 3XO and Tata Nexon.
Also Read: Maruti & Hyundai To Launch 2 New Midsize SUVs in 2026 – What to Expect?
About Author
Chhavi Kaushik is a seasoned content writer with over a decade of experience, beginning her career in 2010. Her fascination with automobiles led her to the industry in 2014. As a freelancer, She has contributed to some of the most reputed online automotive publications, consistently delivering fresh updates on the latest automotive events, product launches, car reviews, and critical industry insights.

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