Volkswagen is researching the best way to develop a new small van to slot in below the Caddy, its current most compact offering.

“If you look at the Peugeot Bipper and Citroen Nemo, if you want to grow share you can’t be absent from fast-growing segments of the industry,” said VW‘s UK commercial vehicle boss Simon Elliott. “If you want to grow share, you have to plug into the markets with the most potential.”

Volkswagen previously looked at using the Skoda Roomster floorplan, but didn’t feel it could offer enough kerbweight. “We’re looking at other floorplans in the group. We’re very active in that,” said Elliott.

Follow BusinessCar on TWITTER