VW says budget brand not for Australia, will focus more on its SUV market- Report

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SUVs are the focus in Australian market, not budget cars.

The Volkswagen Group is expected to add another brand to its collection by 2018 which will specialize in making low-budget cars. However this will not be launched in Australia, as SUVs are a priority in that market, reports Motoring.

VW Polo GT TSI logo
The VW Group’s budget brand is expected to launch by 2018, and is reported to offer 3 models initially.

This information was given to the website by Volkswagen’s head of development Heinz-Jakob Neusser. The ‘budget brand’, as it is now known, will birth three vehicles – SUV, sedan and hatchback. It will be launched in China first where Volkswagen sees a huge market for low cost cars, followed by other markets. This will be the Group’s thirteenth brand on launch.

“The biggest market (for the budget brand) is China, and there are some other countries where people have similar demands, and VW is really globalised and engaged,” he is quoted by the Australian site.

Neusser also stated that they had some other interesting things in store for the Australian market. He said that the continent will be bombarded with SUVs and they will be loaded with features. Volkswagen will be bringing in a minimum of one SUV in each segment.

VW T-ROC Concept front three quarters at Geneva Motor Show
A compact SUV based on the Volkswagen Polo, and a production T-ROC crossover would be positioned below the Tiguan in Australia

The onslaught will begin with the Tiguan set to arrive by late 2016 which will be followed by the T-ROC-based crossover and lastly, a compact Polo-based SUV.

2016 Volkswagen Tiguan at the 2015 Frankfurt Motor Show – Image Gallery

[Source: Motoring]

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