After a challenging 2025, Volkswagen Group is gearing up for a strong comeback in 2026, focusing heavily on new models and electric vehicles. The German automaker reported a 53% drop in operating profit last year, citing tariffs, rising costs, and adjustments in Porsche’s product strategy as key factors.
Small Cars Take Center Stage
A significant part of Volkswagen Group’s 2026 strategy revolves around small cars, a segment historically important in Europe. Volkswagen is set to unveil the ID. Polo, an electric version of the iconic Polo. The ID. Polo’s development has been complex; first previewed in 2021 as the ID. Life concept, the design was later revised to adopt a more conventional look after mixed feedback. The car will use the MEB+ platform for B-segment vehicles and feature front-wheel drive.
Volkswagen will also introduce the ID. Cross, a small crossover similar in size to the T-Cross. Skoda plans to launch the Epiq, the brand’s smallest EV, while Cupra will debut the Raval, a compact car around 4 meters in length.
SUVs Remain a Market Focus
SUVs continue to dominate the automotive market, and Volkswagen Group is expanding its offerings. The new Volkswagen T-Roc is already on sale and will now feature a full-hybrid powertrain. The ID.4 is expected to be renamed the ID. Tiguan, receiving a full redesign in both styling and technology.
Skoda will launch the Peaq, a fully electric three-row SUV, while Audi introduces the Q7 and Q9, with the Q9 taking over as the brand’s flagship. Audi will also refresh the Q4, and Seat’s Arona will receive a facelift, starting at €22,500. Porsche is preparing the all-electric Cayenne, boasting up to 1,156 horsepower.
Other Key Models Across the Group
Volkswagen Group’s 2026 lineup also includes a range of additional models. Audi is reviving the A2 as a compact EV on the MEB platform and will follow up the recently unveiled RS5 with the next RS6, combining a V8 with a plug-in hybrid system for higher output.
Volkswagen will release a hybrid Golf and a refreshed ID.3, while Porsche is expected to debut electric versions of the 718 Boxster and Cayman. Bentley plans a fully electric SUV, and Lamborghini is preparing the Urus SE Performante.
With over 20 new or updated models across its brands, Volkswagen Group is betting on a diversified portfolio of small cars, SUVs, and electrified vehicles to regain momentum in 2026.
