Volkswagen to triple SUV lineup by 2018

Volkswagen is set to triple its SUV lineup in Australia within the next three years.

The German brand has forged a position as one of the 10 most popular brands in the country on the strength of its Golf hatch but only has two conventional SUVs models in its current line-up, the ageing Tiguan and full-size Touareg.

With sales of soft roaders inching closer to overtaking conventional passenger cars, VW will build on its foundations with a new-generation Tiguan, a luxurious and sporty focused coupe-style variant based on the Cross Coupe concept as well as a top-secret and yet-to-be seen baby SUV.

Volkswagen Australia boss John White confirmed to Drive this week the SUV expansion plan will be lead by the next-generation Tiguan, which has recently been caught in the final stages of development, and will arrive next year following its official debut at the Frankfurt motor show in September.

The mid-sized model will be based on the latest lightweight underpinnings of the Golf and share its lineup of turbocharged four cylinder petrol and diesel engine variants, but will be physically larger than the current car and available in both regular five-seat and extended wheelbase seven-seat variants.

White intimated that the Cross Coupe is set to provide Volkswagen with a "more luxury equivalent" SUV to take on the likes of the BMW X6 as well as the upcoming Mercedes GLE Coupe and Audi Q6.

The car has been previewed in a series of concept iterations and is expected to be based on the larger platform that has been introduced on the latest-generation Audi Q7 and is set to form the basis of the next Porsche Cayenne, Bentley Bentayga, Lamborghini Urus and Volkswagen's third-generation Touareg.

While the Cross Coupe is expected to fill a niche within the Volkswagen range, White hinted that the biggest opportunity for growth will come with a new baby SUV that is set to arrive in 2018.

"Under that [Tiguan] we are looking at something. Obviously we need to come down a size to offer something," he said, referencing the popularity of vehicles such as the Mazda CX-3 and Honda HR-V.

Volkswagen has already dismissed the Up-based Taigun for Australia, with White confirming the new model has yet to be confirmed, which, given the Tiguan is moving up a peg, suggests the car is likely to be around the same size as the Polo hatch.

While White acknowledges the need for more SUVs to continue Volkswagen's growth, he said there is a limit and kyboshed the chance of the high-riding Beetle Dune – if it were to make production – from ever seeing local showrooms.

"Not on my watch," he said.