Volkswagen Mulls New Flagship Electric SUV for Affluent Buyers

The automaker sees an opportunity to target high-net worth individuals who want luxury without the brand associations.

Apr. 8, 2026 at 7:44pm

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An abstract, colorful image featuring sweeping, blurred lines and shapes that convey the motion and energy of a large electric SUV, conceptually representing Volkswagen's vision for a premium yet understated flagship model.Volkswagen's new electric flagship SUV promises premium features and performance, but without the brand associations of luxury marques.Today in Detroit

Volkswagen is reportedly considering a new large electric SUV to replace the outgoing Touareg model, aimed at affluent buyers who desire premium quality and engineering but don't want the branding of luxury marques like Audi or Porsche. The new flagship SUV could utilize Volkswagen's PPE or SSP electric vehicle platforms and offer features like a 113-kWh battery pack, dual-motor all-wheel drive, and 400-kW DC fast charging.

Why it matters

Volkswagen's history has been defined by providing affordable transportation for the masses, but the brand has occasionally tried to move upmarket with models like the Touareg, Phaeton, and Arteon. This new flagship electric SUV represents another attempt to attract a more affluent buyer base that values quality and performance over brand cachet.

The details

According to Volkswagen board member Martin Sander, the automaker is investigating a replacement for the Touareg SUV that would slot into the space left by the model's discontinuation in North America in 2018. Sander noted that Volkswagen sees an opportunity to target high-net worth individuals and business people who appreciate premium engineering and features but don't want the associations that come with luxury brand names. The new electric SUV could utilize Volkswagen's PPE or SSP platforms, potentially offering a 113-kWh battery, dual-motor all-wheel drive, and 400-kW DC fast charging capabilities.

  • The Touareg SUV was discontinued in North America in 2018 after 24 years on the market.
  • Volkswagen is currently investigating a replacement for the Touareg, according to board member Martin Sander.

The players

Volkswagen

A German automaker known for providing affordable transportation for the masses, but has occasionally tried to move upmarket with more premium models.

Martin Sander

A member of the Volkswagen board who confirmed the company is investigating a replacement for the Touareg SUV.

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What they’re saying

“Volkswagen sees a gap in the market for customers with the means to purchase a luxury-branded product, but who remain uninterested in the associations that come with that branding—generally, high-net worth individuals or business people who enjoy the quality and engineering behind brands like Audi or Porsche, but who would not purchase one.”

— Martin Sander, Volkswagen Board Member

What’s next

Volkswagen will need to determine the specific platform, features, and pricing strategy for the new flagship electric SUV in order to successfully target the desired affluent buyer segment without overlapping too closely with Audi's upcoming Q9 electric SUV.

The takeaway

Volkswagen's pursuit of a new premium electric SUV highlights the brand's ongoing efforts to expand beyond its traditional mass-market roots and attract a more upscale customer base, though it remains to be seen if they can strike the right balance between quality, performance, and brand cachet.