Volkswagen Kylaq-Based Compact SUV Confirmed for India: Launch, Engine & Price

Volkswagen has received global approval for a new compact SUV based on the Skoda Kylaq for the Indian market.
The upcoming SUV will use a 1.0-litre TSI petrol engine and is set to receive an 8-speed automatic gearbox option.

Volkswagen has received global approval for a new compact SUV for India based on the Skoda Kylaq. According to the report, around 25 million euros (approximately ₹275 crore) will be invested in the project.

The upcoming model will give Volkswagen a new offering in India's sub-four-metre SUV segment. It will share its base with the Kylaq but receive Volkswagen-specific styling and other changes to give it a distinct identity.

Volkswagen Compact SUV to Be Based on Skoda Kylaq

The new Volkswagen SUV will use the Kylaq as its base, allowing the two models to share key components. However, the Volkswagen version will receive its own exterior design rather than using the same styling as the Skoda.

The final name of the India-spec model has not been announced. Volkswagen sells the Tera in Brazil, which is related to the Kylaq, but it is not yet confirmed whether the Tera name will be used for the upcoming Indian model.

1.0-Litre TSI Petrol Engine Confirmed

Volkswagen's compact SUV will use the 1.0-litre TSI turbo-petrol engine also offered with the Skoda Kylaq. Both manual and automatic transmission options will be available.

The automatic version is set to receive an 8-speed gearbox at launch, while the Kylaq currently uses a six-speed automatic. The Skoda SUV is also expected to receive the newer 8-speed automatic transmission with a future update.

Expected Price and Positioning

The Volkswagen compact SUV is expected to be priced between ₹8 lakh and ₹13 lakh (ex-showroom). The model will also mark Volkswagen's return to India's sub-four-metre vehicle segment after the discontinuation of the Polo and Ameo.

The segment represents a significant part of India's passenger vehicle market. According to the report, compact and micro-SUVs together record around 1.1 lakh units in monthly sales, accounting for roughly 30 per cent of passenger vehicle sales.

The model's final name, complete feature list, variant lineup and official pricing have not yet been announced. More information is expected as the SUV moves closer to its market introduction.