VW budget car brand which has been in the news for quite some time now will comprise a family of cost effective hatchback, sedan and SUV, says the CEO. The brand will primarily be targeting the Chinese market and could possibly be taken to other price sensitive markets in due course.
Though the German car maker has been planning a budget brand for China since a long time, meeting an internal cost target was seen as the main challenge. It’s expected that VW would fully exploit its successful older platform and economies of scale to maximize cost savings.
During the early stages of planning, the company officials had gone on record to reveal the cost target of 6,000 – 8,000 euros (INR 4.22 – 5.63 lakhs) but Dr. Winterkorn has now revised it upwards to 8,000 – 11,000 euros (INR 5.63 – 7.74 lakhs).
Ideally, VW should should engineer the budget car family to suit not only China but fast growing emerging markets where a product with good-value-for-money quotient is always welcome. The new range would compete with Renault’s Dacia, Nissan’s Datsun and Chevrolet’s Amber platform based emerging market spec compact car family.
VW would be relying no new budget car brand to claim global market leadership in terms of volumes. India is one market which can’t be given a miss by any low-cost car brand.
Via – Reuters