Skoda Kylaq is doing wonders for the brand, and now Volkswagen seems to be ready to take a similar route in India. The German brand had stayed away from the sub-four-metre space for some time, with its focus placed on cars such as the Taigun and Virtus. That is now changing. There is already a clue about what this new SUV could look like. Volkswagen sells the Tera in Brazil, a compact SUV closely related to the Kylaq. The Indian model is not confirmed to be called Tera, but the connection gives us an idea of what Volkswagen is planning. Volkswagen has received global approval for a new compact SUV based on the Kylaq, with the project estimated to cost around Rs 275 crore.
The new SUV will sit below the Taigun and give Volkswagen a smaller product for buyers who want a compact SUV. It will use the Kylaq as its base, but Volkswagen plans to give the car its own look and character.
The SUV will share the Kylaq’s 1.0-litre three-cylinder turbo-petrol engine. The motor makes 116 PS and 178 Nm in the Kylaq. A six-speed manual will be offered, while the automatic version is expected to use an eight-speed unit. This will be different from the six-speed automatic currently available with the Kylaq.
The new gearbox could make the Volkswagen version more interesting for city users. The final specifications will be confirmed closer to launch.
The Kylaq already has a good list of equipment, and several items are expected to appear on the Volkswagen model too. These could include:
Volkswagen will also have to give the cabin its own design touches so that the SUV does not feel like a simple rebadge.
India sells around 1.1 lakh sub-four-metre SUVs and micro-SUVs each month. The segment makes up about 30 percent of passenger vehicle sales and more than half of utility vehicle volumes. Tata Punch, Tata Nexon, Maruti Fronx, Maruti Brezza, Hyundai Venue, Mahindra XUV 3XO and Kia Sonet are among the major names here.
Volkswagen had earlier been present in the smaller car space with the Polo and Ameo. After both models were discontinued, the brand lost a direct entry point for many buyers.
The new SUV could also add more work for the Chakan plant shared by Skoda Auto Volkswagen India. Higher production can help the company use the factory better and spread costs across more vehicles.
The name and launch date are still unknown. For now, Volkswagen has approved the project, and that is a clear sign that the brand wants a bigger role in India’s compact SUV market. It will strengthen its presence in this crowded segment.