Those of you who are not familiar with the automotive industry in China will probably be surprised to hear that Volkswagen is the largest brand in the country by annual sales. More interestingly, the Wolfsburg-based manufacturer runs two joint ventures, VW-FAW and VW-SAIC, which are competing on the market as separate companies. Volkswagen Group has a bazillion models under its different brands currently available in the People’s Republic, and it is constantly working on new products.

One such new vehicle will come from the VW-FAW joint venture and will take the shape of a sport utility vehicle. Our photographers managed to capture a prototype of that new model testing on public roads and, surprisingly, it was spied in snowy Sweden. The fact that it was snapped up in Europe shouldn’t make you believe it will be available on the Old continent, though - this SUV is only for China.

Gallery: VW FAW SUV spy photos

It’s a little difficult to explain where this new model will be positioned but let us give it a try. VW-FAW currently has a number of utilities on sale in China and this new one, codenamed VW416/3, will take the role of a slightly larger version of the Talagon based on the modular MQB platform. Unofficially, this new product is known as the Talagon X and we are told it will feature a five-seat cabin configuration and a large cargo space.

VW-FAW is expected to launch this new SUV as a direct competitor for the Teramont X, a compact coupe-style SUV designed and produced by the VW-SAIC joint venture. Yes, you read that correctly - the two joint ventures run by Volkswagen in China have competing products and work as separate entities on the market. 

According to preliminary information, the new Talagon X will be offered with a 2.0-liter turbocharged engine in two power stages, mated to a seven-speed dual-clutch automatic gearbox. The standard Talagon is also available with a 2.5-liter unit and we could also see the same V6 as an option for the Talagon X.

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