This could be the game-changer for the company in India as well The growing demand for affordable, no-frills cars in Asia has attracted automobile giant Volkswagen and the company may build its first low-cost car in China.
This will enable VW to take on established competitors, such as Renault Dacia or Nissan Datsun.
Over 30 lakh budget cars are sold in this segment in China per annum, which makes it the biggest market for them.
Speaking to a news agency, Dr Ulrich Hackenberg, Board Member and Chief (Brand Development), Volkswagen, said,
that the German company might make use of one of their two Chinese joint venture partners to enter the burgeoning segment. Volkswagen would also like to have a stronger presence in other small-car dominated markets like India and South-east Asia. Therefore, it can be expected to head for our shores in time.
The company hopes to keep the price between Rs 3.5 and Rs 7 lakh for the new low-cost car and this could undercut the ‘Up!’ hatchback. It is unclear as of now whether the new lowcost car will carry the VW badge or it would be an altogether new brand by itself.
