Volkswagen Kylaq-Based Compact SUV Approved For India

Volkswagen’s long-rumoured compact SUV for India, based on the Skoda Kylaq, has reportedly received global approval. If launched, the model will mark Volkswagen’s return to the highly competitive sub-four-metre segment after the discontinuation of the Polo hatchback and Ameo compact sedan.

The report claims the project has been approved with an estimated investment of around 25 million euros (approximately Rs. 275 crores). The SUV is expected to play a key role in expanding Volkswagen India’s product portfolio by giving the brand an entry into one of the country’s largest passenger vehicle segments.

While the upcoming SUV is expected to share its underpinnings with the Skoda Kylaq, it is likely to feature Volkswagen-specific styling inside and out. Reports also suggest that the feature list and overall positioning will be tailored to differentiate it from its Skoda sibling.

Under the hood, the SUV is expected to use the same 1.0-litre TSI turbo-petrol engine as the Kylaq, with both manual and automatic transmission options. Interestingly, the report states that Volkswagen could introduce an 8-speed automatic gearbox at launch, replacing the 6-speed automatic currently offered on the Kylaq. Skoda is also expected to adopt the new transmission with a future update.

If the project moves ahead as reported, the SUV will allow Volkswagen to re-enter the fast-growing sub-four-metre SUV segment. This category accounts for a significant share of passenger vehicle sales in India and is currently dominated by models such as the Tata Punch, Tata Nexon, Maruti Suzuki Fronx and Maruti Suzuki Brezza.

The addition of a compact SUV could also help improve production volumes at Skoda Auto Volkswagen India’s Chakan facility, while offering buyers a more affordable entry point into the Volkswagen brand alongside the Taigun and Virtus.

Volkswagen has not officially announced the development of this model. However, if the reported plans materialise, the Kylaq-based SUV is expected to become an important addition to the brand’s India lineup.

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