Volkswagen India will launch a compact SUV in 2026, primarily the Skoda Kylaq, with vital exterior modifications to align with VW’s design language. The 2 fashions shall be mechanically an identical, persevering with the present platform-sharing technique.
- VW compact SUV will share platform, powertrain with Skoda Kylaq
- Compact SUV will value ’round 25 million euros’ to develop
- VW might have a particular 1.5 ‘GT’ model for lovers
Volkswagen India had initially determined in opposition to coming into the compact SUV section, leaving the Skoda Kylaq to guide the cost for the VW Group within the sub-4-metre class. The German model remained skeptical of India’s sub-4-metre market on account of profitability considerations and previous failures, such because the Ameo. VW invested round 70-75 million euros in growing the Ameo, however the oddly styled compact sedan, with its truncated boot, struggled available in the market, promoting solely 32,000 items between 2016 and 2020. The Ameo did not justify its funding, particularly since Skoda , citing the identical considerations, did not introduce its personal model, thus shedding out on economies of scale wanted. Additionally, the sub-4-metre section, which will get particular tax breaks, is exclusive to India, and therefore, the export potential may be very restricted once more, limiting scale and volumes.
One other key issue behind VW’s preliminary reluctance to enter the compact SUV section was the group’s international technique of dividing duties between its manufacturers. Skoda was tasked with main the event of inside combustion engine (ICE) fashions, particularly in markets like India, whereas Volkswagen targeted on EVs. As a part of this technique, the MQB A0 platform, which underpins compact ICE fashions just like the Skoda Kylaq, was assigned to Skoda. With the deal with EVs, VW was hesitant to take a position additional in new ICE fashions. In truth, firm sources revealed that the preliminary plan was for VW to utterly exit the ICE market in India by 2028 with the run-out of the Taigun and Virtus. The model would then promote solely small-volume CKD fashions, such because the Tiguan and Tayronand focus on constructing an EV vary.
Nonetheless, in a major shift, VW now plans to launch its model of the Kylaq in 2026. This transformation is available in response to numerous market dynamics, notably the belief that the transition to EVs shall be extra gradual than anticipated, particularly as demand for them. begins to plateau. Additionally, each VW and Skoda are far behind in India’s EV race, with no mass-market electrical providing deliberate until 2027.
VW’s compact SUV shall be about the identical dimension as Skoda’s Kylaq (pictured).
Moreover, Skoda India’s management upheavals have impacted the corporate’s gross sales and allowed sister model and market rival VW to surge forward. The priority is that Skoda gross sales alone wouldn’t be enough to generate the volumes required to justify the estimated 250 million euros invested for the event of the compact SUV or mission ‘India 2.5’.
For VW, the event of its model will value only a fraction of the whole quantity. Firm sources say that the VW SUV will value ’round 25 million euros’ to develop. This may embrace a brand new grille, entrance and hind lights, bumpers and an outer pores and skin for the tailgate. Inside, too, might have some differentiation.
Mechanically, the VW SUV is more likely to be an identical to the Kylaq, which implies it’s going to have the identical MacPherson strut entrance suspension and rear twist beam axle, and the 115hp, 1.0-litre direct-injection turbo-petrol is more likely to be the only engine on provide. The bigger 1.5-litre unit would disqualify the SUV from decrease tax advantages that apply to vehicles underneath 4 meters and with a petroleum engine with a displacement of underneath 1.2 litres. Nonetheless, VW might have a particular 1.5 ‘GT’ model for purchasers who do not thoughts paying for extra efficiency.
The compact SUV section in India is the most important slice of the market but additionally probably the most crowded, and VW shall be late to a really busy get together. The problem will thus be to craft a product inside tight design boundaries and one that may resonate with automobile consumers who’re spoiled for alternative.
Additionally see:
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Volkswagen Virtus GT Line, GT Plus Sport trims launched
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Kanishk Singh has always had a keen interest in fast-paced cars. For the past three years, he has been writing about automobiles, but his fascination with cars dates back even further. He thoroughly enjoys learning about their features and expressing his thoughts through his writing. Kanishk also has a profound interest in the stock market, shares, and business strategies. He possesses a wealth of knowledge on these subjects and consistently writes articles on them. Currently, he is working as a writer for Lattestnews24, specifically focusing on the Automobile, Finance, and Business categories. His well-crafted words are highly appreciated by the readers, as they find them both informative and creative.