Volkswagen’s new budget brand for India, China and Russia
Considering the demand for affordable cars in countries of China, India and Russia, a global budget car brand is in the offing from Volkswagen. This new brand from Volkswagen, will help them compete with Maruti Suzuki India, Geely in China and Lada in Russia.
This new brand will be specially launched for markets in India, China and Russia, where the sales of cars costing less than $13,000 (€10,000) has always been impressive. In India, cars in this segment account for 48% sales, while in China its 33% and for Russia, its 48%. The car makers who are benefitting the most currently is Maruti Suzuki in India, Geely in China and Lada’s (and Maruti Suzuki) in Russia.
By launching a new car brand in this segment, Volkswagen Group will manage to increase their sales and achieve their dream of becoming the largest car manufacturer in the world by 2018. Currently they are in the third place after Toyota and GM.
These budget offerings will not be badged as Volkswagen, but under a new name which is yet to be revealed. A cheaper three door hatchback is also being planned for India while a five seater crossover is also on the cards. Equipment will be basic, though front passenger airbags and ABS will be standard.