
Volkswagen Compact SUV: Another major piece of news has shaken up the automotive world, and this time, the spotlight is on Volkswagen. The brand, which previously stayed away from the compact, affordable SUV space, is now fully geared up to enter this segment. Just imagine the market stir a vehicle featuring German engineering—but available at a budget-friendly price—would create. Let’s explore all the key details about this new SUV.
Volkswagen is making a comeback to the sub-compact SUV segment after a long hiatus. Set to launch in 2027, it will become the company’s most affordable SUV. The new compact SUV is expected to feature a 1.0 TSI engine and be manufactured in India.
Volkswagen’s Comeback
Volkswagen is preparing to launch a new, highly affordable SUV in the Indian market. The company may introduce it with a starting price of under ₹10 lakh, opening up options for buyers who previously considered German brands out of their reach.

This SUV is expected to hit Indian roads in 2027, packed with impressive features. Interestingly, speculation began last week following reports that the company had received global approval for the project, and the brand has now officially confirmed it.
Platform
This upcoming SUV will essentially be Volkswagen’s version of the Skoda Kylaq. Just as Skoda made waves with its compact SUV, Volkswagen is now preparing its own offering. Both vehicles will be built on the MQB-A0-IN platform, with the added benefit of being manufactured in India.
Price
The company’s strategy is clear: it aims to target the ₹8 lakh to ₹13 lakh price bracket, where demand for compact SUVs is highest. This launch will mark Volkswagen’s re-entry into the sub-4-meter market, a segment where it currently has no presence.

Engine and Performance
The SUV is likely to feature the 1.0-litre TSI engine, which is already used in the Skoda Kushaq. It is expected to be offered with both manual and automatic gearbox options. Interestingly, it is likely to feature an 8-speed automatic transmission, whereas the current Kushaq comes with only a 6-speed automatic gearbox.
Competition
Volkswagen will not have an easy run upon entering the compact SUV segment. Strong contenders like the Tata Nexon and Maruti Suzuki Brezza are already established here. Additionally, several other brands are selling their SUVs in the same price range.
