Skoda Kylaq Rival With 114 BHP, 19 KMPL & Design That Could SCARE Tata Nexon!
Volkswagen has confirmed it will launch a new compact SUV in India in 2027, meaning it will be the first sub-4m car Volkswagen has launched since discontinuing the Polo in 2022. This new compact SUV will be a corporate cousin of the Skoda Kylaq, being built on a shortened version of the MQB A0 IN platform that the Taigun is built on.
This decision has happened after the success of the Skoda Kylaq has seen a massive 35,436 units sold between January and September 2026, averaging almost 4,000 a month. As well as this, changes to the GST have meant that sub-4m petrol cars are now taxed at a flat rate of 18% instead of 29% previously, meaning lots more demand for compact cars.
New Compact SUV Under 4m For India
Volkswagen has not confirmed what it will be named, however it is expected to take inspiration from the VW Tera/Tengo which is engineered for Latin America and Africa.
Expected Measurements:
4m long
1.8m wide
1.6m high
2.6m wheelbase
This compact SUV will be based on the Kylaq dimensions, however will have a very different design to stand out from its Skoda cousin.
Read this-
DUCATI FORMULA 73 LAUNCHED IN INDIA AT RS. 20 LAKH BUT YOU CAN’T BUY IT!
Sportier Design
Volkswagen will be giving the new compact SUV a completely different design to the Kylaq, with the new compact SUV being much sportier.
Different Headlights
Different Grills
Different Rear Lights
17-Inch Alloy Wheels
Different Bumpers
Unique Dashboard, Centre Console, Door Cards & Seats
Possibly GT-Line trim with darker exterior and interior
The GT-Line trim will please those looking for a sportier look, with darker features.
Engine – 1.0L TSI 114 BHP
It is likely this new compact SUV will be powered by a 1.0-litre turbocharged 3-cylinder petrol engine producing 114 bhp and 178Nm.
Specs Expected:
Engine – 1.0 TSI Turbo Petrol
Power – 114 BHP
Torque – 178 Nm
Gearing – 6 Speed Manual/Automatic
Drive – Front Wheel Drive
Mileage – ~19km/l
The 1.0 TSI has already been proven in the Taigun and Kushaq, so this will give a great balance between performance and economy. It will also come with a choice of manual or automatic gearboxes.
Why Volkswagen Are Doing This
The Volkswagen group are no longer going to be offering diesel cars made in India but due to the 11% decrease in GST for sub-4m petrol cars, they have become more appealing.
The success of the Skoda Kylaq shows there is lots of demand for compact SUVs from the Volkswagen group. The Kylaq has been selling almost 4000 units a month and is doing much better than any other locally made Volkswagen group car.
Competitors
Tata Nexon
Maruti Suzuki Brezza
Hyundai Venue
Kia Sonet
Mahindra XUV 3XO
Skoda Kylaq
The main benefits to this new compact SUV will be the 1.0 TSI engine, MQB A0 IN platform and Volkswagen build quality however will face some strong competitors.
Price
Volkswagen have not confirmed prices. However taking into account the Kylaq is priced between Rs. 7.59-13.09 Lakh, we can expect the Volkswagen version to be priced similarly, possibly between Rs. 8-13 Lakh.
The GT-Line may see an increase in price.
Should You Wait?
If you’re looking to purchase a compact SUV in the next year here are reasons why you may want to wait.
Reasons to Wait:
Want a turbo petrol engine.
Like the Volkswagen build quality and safety.
Want a sportier design.
Want the GT-Line with darker features.
Reasons Not To:
Need it now.
Prefer a diesel engine.
Wants the cheapest price.
Want an established compact SUV with a good service network.
Overall Volkswagen launching a new compact SUV in India in 2027 is a huge step for them. With the 1.0 TSI engine, MQB A0 IN platform and sporty design it could be a strong contender in the compact SUV market.
The success of the Skoda Kylaq shows there is demand for Volkswagen group compact SUVs in India and this new Volkswagen will give it its own unique identity. This will appeal to those wanting something different from the Kylaq.
Watch this-
