Volkswagen is working hard to upgrade its crossover and SUV lineup.

The German automaker has been adamant in investing heavily into crossovers and SUVs, as the segment continues to see growth. It appears that spy photographers have caught the next-generation Volkswagen Touareg testing for the very first time, and there are some noticeable changes. For starters, it is slightly shorter than the current model and the side mirrors are mounted on a different location. It also sports a different bodyline from the side, but the overall size hints that this prototype is the next-gen Volkswagen Touareg.

There is a possibility that this is another model that will be joining Volkswagen’s lineup, but given that there’s no camouflage on the side of the vehicle, it’s more likely an existing model. The Volkswagen Touareg is built on the same platform as the Audi Q7, Bentley Bentayga and Porsche Cayenne and you can expect to see the new model making its debut sometime next year before it heads to dealerships as a 2018 model.

Meanwhile, the Volkswagen Touareg is getting a lower price tag for the 2016 model year.

The 2016 Volkswagen Touareg will be priced from $43,615 including destination, getting a price reduction of about $2,000 as the German automaker hopes to gain ground in the luxury SUV segment.

The Touareg received a facelift for the 2015 model year, so this year’s lineup will have minor content changes such as Lux and Executive models adding 14-way power adjustable ventilated seats. In addition, Executive models will also get power adjustable steering column, Adaptive Cruise Control, Forward Collision Warning and Autonomous Emergency Braking and Lane Departure Warning.

The Driver Assistance Package on Sport with Tech models will get Park Distance Control, while an optional 21-inch wheel package will be available on Lux and Executive models.

The Touareg hybrid model will be discontinued for the 2016 model year, a model that started at $67,905 at the top of the range. Over the years, the Touareg hybrid struggled to stay competitive and offered very little benefits compared to the standard V6 gasoline Touareg and the diesel-equipped models that were cheaper. The move is a bit similar to Nissan giving the Pathfinder hybrid the ax as hybrid SUVs aren’t proving to be hot sellers at dealerships.