Show Your Love By Sharing
Volkswagen and Suzuki teaming up certainly imply a start to great things. Firsthand, they aim to bring to the Indian auto market a car in the range of 2-2.5 lakh INR. The intent is to replace Suzikis Alto when the car is retired.
This proposed entry level unit will be their next masterpiece after the M800, and Alto. The Rs. 2.5 lakh price range is being kept in mind. The car will have a $4,000-$5,000 price tag in European markets. After the 'Up' priced at $8,800, this will be the cheapest car from the VW camp. The 'Up' has been on display in India. The VW and Suzuki alliance is meant to bring to India compact and small environmentally friendly cars that are low cost.
VW is bringing the Polo hatchback to India in 2010. It'll compete with hatchbacks like the Suzuki Swift, & Hyundai i20. The vehicle isn't being pitted against Nano. The M800 will be phased out in major Indian markets when the Euro 4 emission norms are adopted early next year.
Diesel cars Indiga, and Indica Vista from the Tata Motors shed will face the heat. The VW and Suzuki alliance will enable newer diesel models based on their advanced tech, and product development, and architecture. The companies could be looking at using common platforms. This will facilitate contract manufacturing by Suzuki in India, and Japan. Using Suzuki plants to manufacture VW vehicles for overseas market (European) can be looked at as Nissan is using this strategy already.
The alliance works well for both companies as VW is looking for a cheap car for the Indian and European market in order to increase sales volume, and Suzuki is keen on benefiting from advanced diesel engine technology. Suzuki's Swift and Dzire diesel versions functions on technology from Fiat which is made possible because of a 3 way partnership between them, Fiat, and GM.
