Volkswagen Touareg to bow out after three generations and more than two decades in market? Full-size, five-seater looks like leaving the luxury SUV fight to BMW X5, Land Rover Defender & Volvo XC90 : reports

Volkswagen Touareg

Overnight reports out of Germany are pointing to Volkswagen retiring its long-serving full-size, luxury SUV, the Touareg at the end of the current, third-generation model’s life in 2026.

According to Autocar, VW insiders are citing the recent arrival of the more accessible Volkswagen Tayron SUV as the primary catalyst for the Touareg’s departure, the newcomer offering seven-seat capacity and relatively affordable pricing.

It’s been an at times wild Touareg ride since the first model was unveiled in 2002, that initial series ultimately including a 331kW/600Nm 6.0-litre W12 version.

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The large VW was also at the forefront of platform and powertrain sharing between VW Group brands providing the platform for Porsche’s first Cayenne in 2003, as well as the Audi Q7, Bentley Bentayga and Lamborghini Urus in its later iteration.

A wide variety of petrol and diesel engines have filled the Touareg’s engine bay, the latter including a wild twin-turbo 5.0-litre V10!. And more recently, hybrid combinations.

Capable off-road, yet composed and refined on the highway, the Touareg has continued to find favour with local premium SUV buyers. To the end of July, year-to-date Australian sales are up by close to 28 per cent with more than 500 examples registered so far.

But that number lags the likes of BMW’s X5/X6 (2713), Land Rover Defender (2397), Lexus RX (1210) and Mercedes-Benz GLE (1306).

Volkswagen Touareg R

Volkswagen Touareg

The mid-size VW Tayron is due to launch locally in the second half of this year in five- and seven-seat form, primarily as a replacement for the Tiguan Allspace, but now it appears to also cover much of the ground currently occupied by the Touareg.