Volkswagen Gets Global Nod for New Sub-4 Metre SUV, Kylaq-Based Model Ahead

The project is likely to cost around 25 million euros, or Rs 275 crore. The global approval is expected to pave the way for Volkswagen India to return to the sub-4 metre segment, which the German automaker exited following the discontinuation of the Ameo and Polo hatchback.

The new compact SUV will be positioned below the Taigun in Volkswagen India’s line-up and will target the high-volume segment dominated by the Tata Nexon, Maruti Brezza, Hyundai Venue and Kia Sonet.

The upcoming SUV will be a badge-engineered version of the Skoda Kylaq, but Volkswagen is expected to give the model substantial design changes to establish a distinct identity. The SUV is also likely to receive a significantly revised cabin and features compared with its Skoda counterpart.

Power will come from the 1.0-litre, 3-cylinder, TSI petrol engine that also powers the Kylaq. Transmission options 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 automatic transmission with its next update.

The new Volkswagen compact SUV was earlier speculated to be called the Volkswagen Tera, a model already on sale in the Brazilian market. The sub-4 metre SUV is closely related to the Skoda Kylaq, with both models sharing the same platform and 1.0L turbo petrol engine.

The new Volkswagen compact SUV is expected to be priced in the range of Rs 8 lakh to Rs 13 lakh, ex-showroom.

The sub-4 metre SUV category currently accounts for around 30 per cent of India’s passenger vehicle sales and contributes more than half of utility vehicle volumes. The segment also attracts a lower GST rate of 18 per cent compared with the 28 per cent rate applicable to cars measuring above 4 metres in length.