2 New Tata Nexon Rivals Launching Next Year! » MotorOctane

Tata Nexon is currently having one of its best runs in India. In November 2025, Tata Motors sold more than 20,000 units of the Nexon for the third consecutive month. To take advantage of the demand for compact SUVs, India’s two popular car brands are expected to enter the segment!
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The German Promise

Are you guessing which German brand will launch a new car to rival the Nexon? Well, it is the Volkswagen! Last year, in January 2024, Skoda launched the new Kylaq in India. It became the most affordable German car, which was launched to take on the likes of the Tata Nexon. Has the Kylaq made any impact on the Nexon or other SUVs? Probably not. However, the SUV is doing exceptionally well in terms of overall sales. Looking at the success of the Kylaq, VW will want to introduce one under its own portfolio. And just like other Skoda-VW cars, the Kylaq too will share its platform & engine options with its VW sister. However, it will sport a different design language and could be very similar to the VW Tera.

And no, the brand will likely not launch it as Tera. To create its own space, VW will likely launch the new SUV with a legendary nameplate – the Polo.

So, the upcoming VW Polo or the Tera will share almost everything with the Kylaq. In terms of features, the VW is expected to get – a 10-inch infotainment touchscreen, digital instrument cluster, powered driver seat, ventilated front seats, 6-speaker surround sound system, wireless charger, wireless Android Auto and Apple CarPlay amongst others in its package. Regarding powertrain, the Kylaq is available with a 1.0-litre turbo petrol engine (113 bhp & 178 Nm), mated with a 6MT & 6AT gearbox options. A similar setup is expected for its VW iteration as well.

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Now, VW is yet to make any official statement regarding the launch. Still, we expect that VW will launch the SUV in 2026. Pricing-wise, the VW SUV could be priced anywhere between Rs 9.30 lakh & Rs 15.60 lakh (on-road, Mumbai).

Upcoming Tata Nexon Rivals – Honda SUV

Alongside the VW, we are expecting Honda to also launch a Nexon rival in 2026. Honda has some rigid India plans and a sub-4 metre compact SUV is one among them. Talking of which, the upcoming Honda is likely to be based on the Amaze. Which means that the SUV will share the platform, engine option & features from the Amaze. However, what Honda will try is to give the SUV a boxy design. With the help of which, the new Honda SUV will have a much roomier cabin with enough headroom even for taller passengers. In terms of features, the SUV should get – an ADAS suite, an 8-inch touchscreen, adaptive cruise control, a wireless phone charger, automatic climate control and a few more.

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On the other hand, the SUV is expected to get the same 1.2-litre NA petrol engine (89bhp & 110Nm) like the Amaze, paired with a 5MT & CVT gearbox options. However, it could get a 6-speed MT and overall a tuned engine delivering more power than the Amaze. Additionally, being based on the Amaze that recently achieved 5-star safety ratings at the Bharat NCAP, the SUV too should get a similar score. That said, we expect Honda to launch the new SUV anywhere between Rs 8 lakh & Rs 15 lakh (on-road, Mumbai).