Volkswagen confirms sub-4m SUV for India in 2027; Kylaq-based model to be locally made
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Volkswagen India has finally confirmed plans to launch a new sub-four-metre Sport Utility Vehicle (SUV) in India in 2027. Expected to be unveiled at the Auto Expo next year, the new model will be developed for India and manufactured locally on the MQB-A0-IN platform. It will sit below the Taigun in Volkswagen’s India line-up and mark the brand’s entry into one of the country’s biggest and most competitive SUV segments.
Volkswagen has not disclosed the name, pricing, exact launch date or final technical specifications of the SUV. Reports have linked the project to the Skoda Kylaq, which uses the same India-specific platform, but Volkswagen has yet to reveal the extent of component or powertrain sharing between the two models.
Volkswagen targets high-volume SUV market
The move will widen Volkswagen’s addressable market in India. The company currently has the Taigun and Virtus as its principal locally manufactured models, leaving it without a product in the sub-four-metre SUV category.
The segment has become a key battleground for automakers, with the Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, Kia Sonet and Mahindra XUV 3XO among the established players. The new Volkswagen will also go up against the group’s own Skoda Kylaq.
The decision follows the Volkswagen Group’s India 2.0 strategy, under which the MQB-A0-IN platform was developed with significant local engineering and localisation. The architecture currently underpins several India-specific models, including the Kylaq.
Kylaq success strengthens case for Volkswagen
The Skoda Kylaq’s performance has provided the Volkswagen Group with a clear indication of the opportunity in the segment. Skoda sold 72,665 vehicles in India in calendar 2025, with the Kylaq emerging as a major contributor to the brand’s record sales.
The Volkswagen SUV will use the same underlying platform and is expected to benefit from the group’s existing supplier and manufacturing ecosystem. However, Volkswagen is expected to give the model its own design and positioning rather than simply replicate the Kylaq.
Thomas Schäfer, Member of the Board of Management of Volkswagen AG and CEO of VW Brand indicated that India is gaining greater strategic importance for the group and that the new compact SUV is a key part of its effort to build a larger presence in the market. The company is increasingly looking at India not only as a sales market but also as a development and manufacturing base.
India gains importance in Volkswagen’s strategy
As per industry analysts, the compact SUV is part of Volkswagen’s broader effort to increase its scale in India by expanding its product reach and making greater use of local development and manufacturing capabilities.
The German carmaker has been working on a broader product pipeline for the Indian market, while the Volkswagen Group is also examining ways to deepen its local presence. The new SUV is expected to be an important volume product as the brand seeks to strengthen its position in the country, according to auto analysts.