Mr. Michael Meyer, Director of Passenger Cars, VW India has told Financial Express that the VW Up! and VW Fox (sold in Brazil) hatchbacks have been reviewed for India and found to be either too expensive or too big for the nation's taste.
While acknowledging the importance of hatchbacks in India, Mr. Meyer said the the company's first priority would be to launch a sub-4 metre sedan and a compact crossover SUV. The entry level hatchback segment would be the second priority since it is price sensitive and returns lower margins compared to more premium products. Despite challenges, he said the company cannot leave the segment aside altogether.
The VW Up! had been caught testing in India a few times. A slightly different variant of the global hatchback is on sale in Brazil. The global small car is powered by a 1.0-litre petrol engine in two states of tune, and competes with the Hyundai i10, Kia Picanto, Chevrolet Spark and the Renault Twingo.
The VW Fox is bigger than the Up! but smaller than the Polo. The car is powered by 1.0-litre and 1.6-litre flex-fuel (ethanol powered) engines in Brazil.
With the VW Up! and Fox out of the equation, VW doesn't have an apt product for India in the sub-Polo space as of now, which means the segment is likely to be untouched for a few more years.
[Source: Financial Express]