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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.

Volkswagen's new budget brand for India, China and Russia (4)These new offerings will include a four door family sedan which will be priced at $9,200 (€7,000 or Rs 5.04 lakhs) while an estate is also being brought in, priced at $9,800 (€7,500 or Rs 5.37 lakhs). An MPV is also expected to make its way into markets priced at $10,500 (€8,000 or Rs 5.48 lakhs). These upcoming models will be based on the PQ model and not on the more efficient MQB platform, while manufacturing processes will be undertaken in low labor countries.

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.

Source: CarScoop


About the author

Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

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