Tech Desk: Volkswagen is making a significant comeback into India’s high-volume sub-four-metre vehicle market with the official confirmation of a new compact SUV, slated for a 2027 launch. This strategic move marks their re-entry into a segment they exited after discontinuing the Ameo compact sedan and the Polo hatchback, signalling a renewed focus on Indian consumers. Developed specifically for the Indian market on the versatile MQB-A0-IN platform, similar to the upcoming Skoda Kylaq, this new SUV will be manufactured locally, underscoring VW’s commitment to the ‘Make in India’ initiative.

The upcoming Volkswagen compact SUV India is expected to be competitively priced between Rs 8 lakh and Rs 13 lakh (ex-showroom), aiming to capture a crucial part of the market. While its official name remains under wraps, it shares a close relation to the Brazilian-market Volkswagen Tera, hinting at its potential design ethos. Powering this new contender will be the familiar 1.0-litre TSI petrol engine, known for its efficiency and peppy performance. Buyers will have the choice of both manual and an upgraded 8-speed automatic transmission – a notable improvement over the Kylaq’s current 6-speed auto, which is also likely to receive this upgrade in its next iteration.

This announcement, coming shortly after reports of global approval for VW’s version of the Kylaq, underscores Volkswagen’s strategic pivot towards India’s burgeoning SUV demand. With local production, a competitive price point, and a segment-appropriate powertrain, the German automaker is poised to challenge established players. The 2027 Volkswagen compact SUV India promises to be a feature-rich and robust offering, designed to meet the specific needs and aspirations of Indian car buyers, making it a highly anticipated launch in the coming years.