Volkswagen to enter India's sub-4-metre SUV segment with Kylaq-based model

Volkswagen has given the green light to a new sub-4-metre SUV for India, marking the German carmaker's return to a segment it has largely stayed out of for years. The project, reportedly worth around 25 million euros or roughly Rs 275 crore, will see Volkswagen enter one of the most competitive spaces in the Indian passenger vehicle market.

Volkswagen is targeting the sub-4m SUV segment

India's sub-4-metre SUV segment has grown into a genuine volume driver, generating around 110,000 units in sales every month. It now accounts for roughly 30% of the country's overall passenger vehicle sales and over half of all utility vehicle sales, making it too significant for a brand like Volkswagen to ignore as it looks to rebuild volumes locally. Competition in the space is intense, with established names such as the Tata Punch, Maruti Fronx, Tata Nexon, Maruti Brezza, Hyundai Venue, Mahindra XUV 3XO, Kia Sonet, Hyundai Exter, Skoda Kylaq and Toyota Taisor all fighting for a share.

A badge-engineered Skoda Kylaq

Volkswagen's upcoming SUV will essentially be a rebadged version of the Skoda Kylaq, which has quickly become a strong performer within Skoda's India lineup since its launch. Kylaq alone contributes an estimated 60-65 percent of Skoda's monthly sales volumes and consistently ranks among the top 10 bestselling sub-4-metre SUVs in the country.

While the underlying platform, dimensions and mechanicals will be shared with the Kylaq, Volkswagen's version is expected to carry distinctive exterior and interior styling, along with its own market positioning, to differentiate it from its Skoda sibling. This isn't Volkswagen's first attempt at compact cars in India either; the brand previously sold the Polo hatchback and the Ameo compact sedan here. Globally, Volkswagen already sells a related product called the Tera SUV in Brazil, measuring 4,151 mm in length, which shares its underpinnings with the Kylaq platform.

Engine and transmission expected

Under the bonnet, Volkswagen's sub-4-metre SUV is expected to use the same 1.0-litre TSI turbo-petrol engine found in the Kylaq, producing 116 PS and 178 Nm of torque. While the Kylaq currently offers this engine with a 6-speed manual or 6-speed automatic, Volkswagen's version is expected to switch to an 8-speed automatic transmission instead. Interestingly, the Kylaq itself is also expected to gain this newer 8-speed unit as part of a future update, suggesting Volkswagen may debut the improved gearbox first.

Features and safety

Much of the Volkswagen SUV's feature list is expected to be similar to the Skoda Kylaq. It could get a 10.1-inch touchscreen, an 8-inch digital instrument cluster, wireless Android Auto and Apple CarPlay, an electric sunroof and wireless charging. Other expected features include automatic climate control, ventilated front seats, leatherette upholstery, ambient lighting and 6-way power-adjustable front seats.

The SUV could also get alloy wheels, 6-speaker audio, electrically adjustable ORVMs, automatic headlamps, an auto-dimming IRVM and a 60:40 split rear seatback.

The safety package is also likely to be similar to the Kylaq. Expected features include six airbags, electronic stability control, electronic brake-force distribution, cruise control, hill hold assist, ISOFIX child-seat mounts and a tyre pressure monitoring system. Multi-collision braking, an anti-theft alarm, an electronic differential lock and roll-over protection could also be offered.

Launch timeline still unclear

Because the new SUV is essentially a badge-engineered product built on an existing, already-developed platform, Volkswagen should be able to bring it to market relatively quickly compared to building something from scratch. However, the company has not revealed an exact launch timeline yet. With multiple new entrants also expected in this space over the coming years, including a new VinFast electric SUV, the Mahindra Vision X, a new Hyundai electric SUV, a new Honda SUV and the Renault Bridger, India's sub-4-metre segment looks set to get considerably more crowded.

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