Unveiling the new Tiguan here at the Frankfurt Motor Show, Volkswagen CEO Herbert Diess said the vehicle is a "proof of the strength of the Volkswagen" brand.
Since the launch of the model in 2007, the Tiguan has sold 2.6 million units so far, he said, adding it is the company's third most popular brand after the Golf and Polo.
Besides being an 'affordable' vehicle, the new Tiguan will also be a environmentally sustainable one as it is also being offered in plug in hybrid option as well, Diess added.
Company officials said the Tiguan is likely to be launched in the Indian market next year, where the appetite for SUVs is growing at a fast pace.
It is understood that VW Group firm Audi is also planning to start assembling engines in India. The group will make an announcement soon on fresh expansion in India.
Volkswagen is planning to make India a low-cost manufacturing hub, which will cater to emerging and developed markets.
Also, as part of Prime Minister Narendra Modi's 'Make-in-India' initiative, the company plans to spend Rs 1,500 crore on localisation and producing cost-effective products.