The brand will launch with a sedan, SUV and hatchback.
VW has announced that it will be launching its 13th brand internationally in the form of a budget car brand in the Chinese market in 2018. The brand will offer three models at the time of launch but is likely to expand later. Apart from China other markets like India, Brazil and Russia being taken into consideration, but for a later stage.
The new models are expected to be based on the older generation platforms and are being developed jointly by VW and its Chinese partners with the aim of keeping costs low. According to an interview given to Bild, CEO Martin Winterkorn said that the company aimed to price the models between Rs 5 to 8 lakhs.
The low cost brand will be a big bost to the company with tighter norms in Europe driving car prices up in the European markets.
For India, the company is unlikely to bring the brand here with Indian buyers not receiving the 3-cylinder Polo well since the engine on offer was a dated unit. VW India director Michael Mayer in face said that while the company was focusing on managing cost issues here, it was not likely to build a cheap car for the country. It would rather focus on bringing in more advanced technologies.
As of now the company has four new models lined up to launch in the next two years with the new Beetle, Polo compact sedan, the new Passat and the new Tiguan SUV coming by mid-2017.
Source: Autocar India