Volkswagen’s ever-expanding global SUV lineup will soon gain a new member, destined for the Brazilian market. The German brand announced a new small SUV that will be developed and produced in Brazil, coming in 2025 with a five-letter name. The model, codenamed Project VW 246, will serve as an entry point in VW’s local SUV lineup, positioned below the T-Cross and the Nivus. The Brazilian-spec T-Cross is longer compared to its European counterpart, matching the 2,650 mm wheelbase of the Nivus. This leaves room for another crossover/SUV, set to rival the likes of the Fiat Pulse and the Renault Kardian. The official teaser shows a small crossover with familiar styling cues. The LED headlights, slim grille, and large bumper intakes are all reminiscent of recent VW models, while the sculpted body and overall silhouette make it look like a baby Tiguan.

On a dedicated website, VW asks fans to guess the name of the new SUV, revealing it will consist of five letters. The company also exhibited an uncamouflaged example during the “Rock in Rio” event, although it kept it inside a semi-transparent box, serving as a real-life teaser. Our colleagues from Auto Segredos took photos, noting the similarities with the Skoda Fabia hatchback in terms of size and proportions. In the official press release, VW talks about a “completely innovative, modern, connected product that will inaugurate a new segment for the brand in Brazil”, and one of the 16 new products set to debut in the local market by 2028.

Camouflaged prototypes of the upcoming model have been spotted testing in Sao Paolo, with earlier mules using a Skoda bodyshell. This, and the timing of the launch, make us believe that the new VW could be closely related to the upcoming Skoda Kylaq, set debut in India in 2025. The baby SUVs from the VW Group are expected to ride on the MQB A0 architecture. The Indian-spec Skoda is expected with a sub-4m length, while the Brazilian-spec VW will be slightly longer, at around 4.1 m.

According to reports from local media, the entry-level VW SUV will be powered by a 1.0 TSI engine, rather than the naturally aspirated 1.0 MPI unit. The turbocharged three-cylinder mill produces 116 hp when running on ethanol, and 109 hp on gasoline. Production of the SUV will reportedly take in the Taubate plant in Brazil, next to the VW Polo Track hatchback. The official debut is rumored to take place in mid-2025. At the moment, it is not clear if VW will offer the entry-level SUV in other markets outside Latin America.