Volkswagen Polo returns; this time with a twist

Volkswagen is reportedly planning to enter the sub-4-meter SUV segment in India with a new model based on the Skoda Kylaq, expected to launch in 2026. The term sub-4 meter SUV refers to compact SUVs with a length not exceeding 4000 mm.

Previously, Volkswagen had opted out of this segment, leaving it to Skoda. However, plans have shifted, and 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.

What to expect?

The new Volkswagen SUV will feature distinct design elements, including a unique grille, lighting, and bumpers, aligning with the brand's design language. This approach mirrors previous collaborations between Skoda and Volkswagen, such as the Kushaq/Taigun and Slavia/Virtus.

Development costs for the Volkswagen version are estimated at around 25 million euros (approximately Rs 227.5 crore). 

As per reports, there’s speculation that it may be branded as the Polo SUV, supporting Volkswagen's plans to revive the Polo name in India.

Despite entering a competitive market with about 12 existing options, the sub-4-meter SUV segment is said to be one of the fastest growing in India. Increasing consumer preference for small SUVs may bodes well for Volkswagen's entry.

Earlier hesitation on EV models

Volkswagen’s earlier hesitation to enter this segment stemmed from the poor sales of the Ameo, which saw only 32,000 units sold between 2016 and 2020. The brand had also planned to focus on electric vehicles, but with the slowdown in EV sales, the strategy has shifted back to internal combustion engines.

By entering the sub-4-meter SUV market, Volkswagen aims to justify the costs associated with the new platform developed under the 'India 2.5' project, which also includes improving plant utilization. This move is expected to enhance volume sales and help achieve economies of scale in a crucial market.