German auto giant Volkswagen is working on a new budget car brand that will consist of a compact hatchback, compact sedan and compact SUV.
Volkswagen is planning an onslaught in global markets by launching a lot of new vehicles ranging across various segments. The company is introducing facelifts and updates of current models while also working on increasing their portfolio by developing newer products that cater to different markets. We had reported last week how the German automaker is planning to launch five new vehicles in the Indian market in the next two years. The latest news states that Volkswagen is currently working on a new budget car brand which is set to hit the markets by 2018. Just like Nissan has Datsun and Renault has Dacia, VW too wants a low cost car brand.
This budget car family will spawn three vehicles, a hatchback, compact sedan and compact SUV will be a part of this family. These vehicles will be developed completely in China, thanks to the fact that labour costs are comparatively low over there. This project has been in the offing for a few years now but Volkswagen couldn’t execute it because it couldn’t meet internal cost targets set by the company. However, the project has now got up to a fresh new start.
Volkswagen was planning to launch these new vehicles in a price range of 6000 – 8000 Euros (Rs. 4.25 – Rs. 5.67 lakhs) but reports suggest that the new price target has been set to 8000 – 11,000 Euros (Rs 5.67 – 7.80 lakhs). Initially, this new budget car family will be launched only in the Chinese market and later on company officials will study other potential markets for this range. It is probable that India too could benefit from these vehicles. There is a high scope of growth for budget cars here and it will be wise of Volkswagen to launch them here. However, things could be completely different in 2018 and market scenarios may change, and hence all we can do now is just wait and watch.
