The Tiguan comes into the line-up as a little brother to the Touareg off-roader and echoes many of the larger vehicle's visual characteristics and driving versatility.

Volkswagen is pitching the Tiguan as a direct rival to the Toyota RAV 4, Honda CRV and Land Rover Freelander – the leaders in a segment that it said accounts for 108,000 sales a year.

From launch the Tiguan is available with a 2.0-litre TDI 140PS diesel unit and a 1.4-litre TSI 150PS petrol engine. In the second half of the year the line-up will be supplemented by 170PS diesel and petrol versions as well as a 200PS 2-litre petrol engine. Volkswagen claimed all engines meet the Euro 5 emissions standards that come into force in 2009.

The carmaker predicted sales of 10,500 in 2008 rising to 11,300 in 2009. More than 85 per cent of buyers are expected to choose a diesel engine with 60 per cent of sales going to private customers.