Volkswagen looking to introduce budget car brand in India

Volkswagen is considering to deploy an entry level car brand in India to extend the Group’s spread in Indian car market. Volkswagen is currently offering only premium cars in those segments they fall in, and this does not result in high sales volume. Hence, VW is planning to insert a Chinese subsidiary into the affordable car space.

Volkswagen Polo Cross Review RushLane-031Volkswagen is still studying the market to work out a promising strategy to bring the Chinese Auto company to Indian soil. Decision to bring the new brand might be taken in a year, and launch of the same will follow in 3 to 4 years.

By then, Volkswagen will also be introducing new products here and provide its existing line up with cosmetic improvements. Volkswagen Polo, Vento, Jetta, Passat, Beetle and Tiguan will be receiving facelift upgrades and new sub-4 metre sedan – Polo Stuffle may be launched here, in the next 3 to 4 years.

Volkswagen India Logo 02Mahesh Kodumudi, MD and Chief Representative of Volkswagen India, in an interview with Economic Times, said that his team has been working closely with German and Chinese counterparts and has generated a list of ideas and strategies. But the most suited for India is still being figured out. He also said that the products developed for Chinese market may not be brought to India as such, as he states that India is one among the most brutal lowest retail markets ever and that those products reckoned as low-cost ones in China may not be considered as low-cost here in India.

Mr. Kodumudi mentioned that the new brand of entry level cars will not compromise on quality, and that it will not affect the same of existing Volkswagen cars, as mutual adaptation of components may be exercised.

Source Economic Times