According to the German publication Focus, the Taigun would be too small for Volkswagen's pretensions. They would need a B-SUV with great versatility and habitability to face the current competition. Recall that Volkswagen currently has no vehicle to compete against the Opel Mokka, Mazda CX-3, Nissan Juke, Renault Captur, Ford EcoSport ..., etc..
The German brand is missing an interesting piece of the pie and knows it has to make a move and present a vehicle with these features. But not only Volkswagen is arriving late to a segment that is growing in sales every month. The VAG group brands do not have in their catalog any model of these features, SEAT and Skoda will present (finally) a compact SUV and the next step would be to develop a B-segment SUV. The closest thing to this is the unique Skoda Yeti crossover, but it has not had a great reception in the market.
Rumors also indicate that the Polo SUV will be seen at the Geneva Motor Show in concept car mode and will give us a preview of the design that we will see in the next SUV that Volkswagen brings to market. These rumors are not new, and my colleague Eduardo advanced it on January 27, but now we get more confirmations about the discarding of the concept Taigun.