3 lakh Discount After Just 3 Months: Volkswagen Tiguan R-Line Struggling To Sell
Volkswagen was quite ambitious when it launched the Tiguan R Line in India, in April 2025. Owing to its CBU roots and the stronger focus on performance and dynamics, this SUV had a hefty price tag around its neck. Looks like the same has backfired, as the Tiguan R Line is now struggling to sell! The carmaker has announced benefits worth Rs 3 lakh on the SUV, in the hope that the revision would translate to more sales.
At launch, the Tiguan R-Line had an ex-showroom price of Rs 49 lakh. The on-road cost could hover over Rs 61 lakh in many cities. This makes it quite pricey to take home and the same seems to have affected the sales. Data shows that the R-Line posted double-digit monthly sales in the first 2-3 months. The initial batch consists of 300 units, many of which are struggling to find takers.
The benefits announced by the carmaker now, include a flat cash discount of Rs 2 lakh. This revision has pumped more value into the R-Line Tiguan and could potentially attract more buyers as well. Volkswagen India, however, says that these discounts and benefits are part of the company's July 2025 AutoFest campaign. These aren't limited to the Tiguan alone. The Virtus and Taigun lineups also get benefits of over 2 lakh rupees.
Buyers can now save up to 2 lakh rupees on the Virtus sedan. This can be availed on the Topline AT variants. The Highline trim now starts at Rs 12.77 lakh and qualifies for additional bonuses of up to Rs 70,000. The GT Line gets up to Rs 50,000 off. The base variant gets a cut of over 1 lakh rupees. The Virtus GT variants with the 1.5 TSI engine get discounts of up to Rs 1.10 lakh.
The Taigun SUV gets benefits of up to Rs 2.50 lakh on the Topline trim. The Highline and GT Line offer up to Rs 1.12 lakh and Rs 1.30 lakh in savings, respectively. The base trim offers savings of up to Rs 80,000. The GT variants offer discounts and savings of up to Rs 2.44 lakh.
Circling back to the Tiguan R-Line, several dealer-level benefits can also be availed on the SUV. These include exchange bonuses, loyalty rewards, and scrappage incentives. These are aimed at clearing the unsold inventory at the earliest.
So, What Went Wrong?
Volkswagen seems to have misread the Indian market (again!). The Tiguan R-Line is a great product, placed wrong! It was pitched as a sportier, feature-packed alternative to the Jeep Meridian, MG Gloster and to some extent, the Fortuner (especially considering the prices)! It would also lock horns with the Skoda Kodiaq.
Let's keep the Kodiaq aside for now. The Meridian and the Fortuner are both strong players in the SUV segment, with the latter dominating the segment. The R Line feels a lot more plush, sophisticated and tech-packed than the two. It, however, misses something that the general market sentiment in the segment is in great favour of- a strong diesel engine!
Thanks to Volkswagen Group's 'petrol-only policy', the Tiguan R Line comes only with a 2.0-litre TSI turbocharged petrol engine that produces 204 bhp and 320 Nm. It comes mated to a 7-speed DSG. The SUV is further equipped with VW's 4Motion AWD system. It is fast to get off the line and feels sharp around corners. But turns out that these aren't the traits that excite buyers in this segment.
The Fortuner probably has the most outdated interior and the least-populated feature list. Despite these, it continues to sell around 2,500 units a month, making the R Line's monthly figures look microscopic.
Remember the Skoda Kodiaq that we mentioned previously? Well, think of it as the Skoda version of the Tiguan with the same underpinnings and powertrains. For now, it is a petrol-only model as well. The Kodiaq, however, sells more than the R Line in India. Skoda, however, has plans to launch a diesel-powered Kodiaq in India, sometime soon. It will then give the SUV's sales a notable boost. The R Line, on the other hand, is unlikely to get this engine.
Volkswagen brought the Tiguan R Line to India as a complete import, in limited numbers, thereby bypassing homologation. India imposes heavy duties on full imports and models with limited localisation. The company is left with very few opportunities to keep the prices competitive.
Skoda, Better Be Careful!
Skoda India is planning a major product onslaught this year. The carmaker intends to bring a slew of global products to India, as CBU imports. The Octacia RS, Octavia diesel and the diesel Kodiaq are all on the list. Pricing will be decisive in many of these cases.
Models like the Octavia have stellar reputation among Indian buyers. However, the last generation which was on sale here, did not sell well, due to its heavy price tag and limited powertrain choices. The Superb, again, had a similar story in India. It was very popular once. The last generation, however, struggled so much to sell that the carmaker finally announced a massive 18 lakh discount on it, to clear the inventory.
Bottomline
We believe that Volkswagen and Skoda should focus more on giving their products the right placements in the Indian market, in terms of pricing and packaging. Doing CKDs instead of CBUs for the future lineup, could turn out to be life savers for both brands.