VW is said to be readying two new compact SUV models.

Volkswagen's SUV lineup is currently a little thin - having only the Tiguan and Touareg on offer - but that should change in the coming years as the German automaker is reportedly developing two new compact utility models.

The compact SUV segment appears to be set for a massive expansion in the coming years, with VW looking to get in on the ground floor. According to Germany's Handelsblatt, VW is currently readying two new utility vehicles that will slot beneath the Tiguan.

One of those SUV models will be based on VW's Polo small car. No other details were given, but it is believed that the Polo-based SUV will replace a previously planned SUV based on the Suzuki SX4. Thought to be called the Rockton, VW canceled plans for the SX4-based model after a fallout with Suzuki.

VW's second new SUV will be based on its Up city car. That model is said to be "certain" for production and should mirror VW's recent Buggy Up concept vehicle.

A VW spokesman decline to confirm the report to Automotive News, but did indicate the company is exploring further expansion into the SUV market. "SUVs are very interesting. Our modular production system allows us further spinoffs."

The smaller VW SUV models will compete with the upcoming Opel Mokka and a subcompact SUV from Peugeot.