Report – After China, VW studying budget brand for India

Posted on: Jun 2, 2014 - 4:51pm IST

VW has reportedly finalized its budget brand for the Chinese market. The first car from this brand is expected to go on sale in China by 2016-17. Now, the German carmaker is studying the Indian market to introduce a budget brand reports Economic Times.

Given that VW cars are priced above INR 5 lakhs in India, the brand caters to only 50-60 percent of the 2.5 million unit strong car market in India. With a budget brand, or budget car, VW would be looking at the sub-5 lakhs segment.

VW Polo GT TSI front wheels turned
VW is studying the Indian market for a budget brand to cater to the sub-Polo segment.

The newspaper says that the company is seriously considering a budget brand for India. Teams from India are working closely with the Chinese and German teams, and that the most “prudent and suitable” idea for India would be looked upon.

The report adds that what might be a low-cost car for China, may still not be a low-cost model in India. The low-cost Chinese car is reported to be based on the VW Santana platform. In India however, the only platform to have achieved some level of localization is that of the Polo.

The budget brand from VW would compete with Nissan’s Datsun.

[Source – Economic Times]

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