Volkswagen Plans To Launch Kylaq-Based Compact SUV in 2027

Volkswagen Has Approved A Kylaq Based Sub 4 Meter SUV (updated)

Updated August 13, 2026

Published November 24, 2025

Volkswagen Has Approved A Kylaq Based Sub 4 Meter SUV (updated)

Volkswagen has reportedly approved the development of a new compact SUV based on the Skoda Kylaq. The upcoming sub-4-metre SUV will be a badge-engineered version of the Kylaq and will share its 1.0-litre turbo-petrol engine.

Here’s everything you need to know about Volkswagen’s upcoming compact SUV.

Design and Platform

The Indian-spec Tera will be a badge-engineered model, sharing the MQB-AO-IN platform with the Kylaq, but featuring distinct styling to match Volkswagen's design language.

Expect design inspirations from the Taigun, including an aggressive front grille, rectangular headlamps, connected taillights, and GT-Line variants with sporty black accents on the exterior for a bolder look. The overall shape will stay compact, likely similar to the international-spec Tera.

Features

Expect the SUV to be feature-packed, with ventilated front seats, a 10.1-inch touchscreen infotainment system, an 8-inch digital instrument cluster, and an electric sunroof, as seen on the Kylaq. Volkswagen could one-up Skoda by offering some additional features, though Skoda is expected to do the same with the facelifted Kylaq eventually.

Safety is expected to be strong with 6 airbags, ESP, ABS with EBD, ISOFIX child seat mounts, and 3-point seatbelts for all occupants standard across the range. Being based on the same platform, the Kylaq's 5-Star Bharat NCAP rating would most likely apply to this car as well.

Powertrains

The powertrain will to mirror the Kylaq's setup. It will use a 1.0-litre three-cylinder turbo petrol engine producing around 114 horsepower and 178 Nm of torque.

Transmission options are likely to include a six-speed manual and possibly an eight-speed torque converter automatic, most recently seen on the Skoda Kushaq. This unit will also make its way into the Volkswagen Taigun facelift and the rest of the Skoda and Volkswagen models.

Volkswagen Compact SUV Launch Date and Price

As per market reports the VW Kylaq rival is estimated to involve an investment of around Rs 275 crore and might come with 8 speed gearbox. Expect the model to launch in May June 2026 or even sooner as only minor cosmetic changes will be made to existing Kylaq

Images Source: Volkswagen Brazil
Info- Teambhp

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Comments

Dr Shashi Pal Singh

February 15, 2026

Eagerly awaiting for the advance booking of Volkswagen Mini Suv 998CC .But there should be an option with 1.2 l Turbo ,1.5 l turbo alongwith a Diesel and EV option too . I had a vento petrol and currently a Polo 1.5 l Turbo Diesel doing wonderfully but for a replacement of MAF SENSOR and cooling part .The aftersale service is not up to the mark , plus the spares are not easily available making the passion for Volkswagen enthusiasts in the remote places a calculated risk .

Team CARHP

Hello, Dr Shashi Pal Singh, Agreed, Old Polos, Ventos and even Ameos to some extent are still in high demand. As for VW's upcoming subcompact 1.0 L taken from Kylaq is the only possibility to keep costs low, spare parts won't be an issue as the 1.0L unit is shared in Virtus, Slavia and Kylaq

Design and Platform
Features
Powertrains
Volkswagen Compact SUV Launch Date and Price

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