Volkswagen confirms new sub-four metre model: Big aspirations in India

Based on inputs from an interaction attended by Arpit Mahendra.Volkswagen has confirmed it will bring an all-new sub-4 metre compact SUV to India. This will be the German carmaker's entry into the country's biggest passenger vehicle segment. The car is set to arrive in 2027 and will be built locally on the MQB-A0-IN platform.Recently, during a media roundtable, we spoke with Thomas Schafer, CEO of Volkswagen Passenger Cars, about the new SUV, its role in the lineup and the brand’s EV plans.Filling the biggest gap in the lineupVolkswagen has stayed out of the sub-4 metre space in India since few years: a segment that Schafer noted accounts for close to 28 percent of the entire industry's volume. That's about to change.On India's longer-term role, Schafer said "I would dare to say that we have aspirations to grow significantly in India, not incrementally". Speaking on why the growth had been limited so far, he explained that Volkswagen simply hadn't competed in enough segments to grow faster. Entering the sub-4 metre space now, and eventually others, is how that changes.Speaking on exports of the upcoming SUV, Schafer said the segment has real value as an export product, since Volkswagen doesn't offer this kind of car anywhere else in its lineup. He noted that while the sub-4 metre body style isn't unique to India, not every global market has such cars, which makes this model's export potential more meaningful.Nitin Kohli, Brand Director, Volkswagen India, added how Volkswagen has gradually brought German engineering closer to Indian buyers, starting with fully imported units like the Golf GTI and Tiguan R-Line, followed by the Taigun's local assembly. "You can see now this going down to the sub-4 meter," he said, adding that the brand is proud to finally cater to this segment.India becoming a development hub, not just a factorySchafer also explained why India matters beyond assembly lines. He explained that the auto industry has shifted away from a single global development model, where cars were designed once in Germany and rolled out worldwide. Now, regions like China, North America and India are increasingly developing for themselves.For India, he said that the appeal isn't just about lower costs. "We will build up capacity in India because it is not only cost-efficient," he said, pointing instead to the country's skilled talent, now valuable for vehicle R&D as well as IT work.Standing out in the EV raceSchafer also addressed Volkswagen's electric vehicle strategy, especially with China setting the pace on EV technology. He admitted that shared skateboard platforms make it harder for EVs to feel distinct from one another compared to combustion cars. Still, he insisted brand identity survives the shift.He pointed to strong, positive reactions to the ID.Polo, including from people who tested it on the Nurburgring. "You have to be a brand before" you can be a distinct EV brand, he said, arguing that Volkswagen's decades of history give it an edge newer EV-only brands are still trying to build.A possible local partner, and room for more premium importsSchafer also spoke on whether Volkswagen might team up with an Indian partner. He kept the answer brief but pointed, saying only that a decision "is not that far away."On the other end of the lineup, he floated the idea of using a future India-Europe trade agreement to bring in low-volume, premium European models that currently don't make financial sense to localise. He said this could work both ways, giving Indian buyers a fuller taste of the brand while also making India a more attractive base for Volkswagen to build and export from.What’s nextThe sub-4 metre SUV marks Volkswagen finally entering a segment it had stayed away from for years. But Schafer's comments suggest it fits into a bigger India plan, one that includes local manufacturing, more R&D work, and eventually exports too. When it arrives in 2027, this SUV is set to become the most accessible Volkswagen yet in India. More details will be revealed closer to the launch.