Essentially a high-riding small hatch, the compact SUV segment has taken off in recent years, with many buyers preferring the combination of a higher seating position and the maneuverability of a small car.
Speaking with industry paper Automotive News Europe, Volkswagen design boss Walter de'Silva said the compact and small crossover market has wide appeal, proven by the popular Tiguan (755 Australian sales in October).
"Crossovers demand is expanding from mature markets to emerging markets and we have to cover this growing appetite with a multilateral expansion in the offer of our brands," de' Silva said.
Details on the potential new model have not been revealed, although it is possible that it could utilise the same version of the PQ35 platform underpinning the Skoda Yeti, sharing its 2578mm wheelbase with the Golf hatch.
The recently-revealed Volkswagen Cross Coupe concept could offer a few hints for the new crossover's styling, including the new grille design that merges into the shape of the headlights.
Whether the new model will retain its coupe-like roofline is unclear however, with de'Silva adding that a decision on that front has not been locked in.
That new face is likely to hit more VW cars in the coming years, with Volkswagen brand design boss Klaus Bischoff confirming that a version of the design will appear on a new model in the near future.