At the company’s annual general media conference in March this year, Ashish Gupta, Brand Director, Volkswagen India, categorically mentioned that the German brand is not looking to enter the sub-4 metre space in the passenger vehicle market. This despite its sister brand Skoda announcing the development of a sub-compact SUV for the Indian market a few months back.
Called the Kylaq, the Czech carmaker is not gearing up to officially unveil the sub-4 metre SUV next month before it goes on sale early next year. It now seems that Volkswagen has had a change of heart. A recent media report states that Volkswagen is indeed working on a subcompact SUV.
Upcoming Volkswagen subcompact SUV details
According to Autocar India, the new VW subcompact SUV will be based on the same underpinnings as the Kylaq but will get a completely different top hat based on the German brand’s design philosophy. The report further mentions that this upcoming SUV will hit Indian roads in 2026. If true, this will mark Volkswagen’s return to the sub-4 metre space after the Polo was discontinued last year.

The report mentions that the total cost to develop this VW SUV will stand “around 25 million euros”. It will be differentiated from its Czech cousin mostly in the design aspect including a new grille, headlights and taillights, front and rear bumpers and a new tailgate. Interiors may also be different from the Kylaq.
A month ago, Volkswagen teased a new subcompact SUV for the Brazilian market which was expected to make its debut soon. The sub-4 metre SUV space in India is very crowded with almost every OEM looking for a share of the pie and VW may have sensed an opportunity to encash.
Powering the Volkswagen subcompact SUV will be the sole 1.0-litre three-cylinder turbocharged petrol engine which pushes out 114 bhp and 175 Nm of peak torque. Transmission duties will be carried out either by a 6-speed manual gearbox or a 6-speed torque converter automatic gearbox. More details of this SUV will be available as the launch of this model comes closer.
Source: Autocar India