Latest Car News in India

Monday, June 02, 2014

By Jitendra Singh

Volkswagen to bring an under budget car for India

Europe's largest car maker Volkswagen is studying the possibility of introducing a budget brand for the Indian market, a move its Chinese subsidiary is very close to finalizing. Volkswagen, which is trying to get its basics right in India, caters only to 50-60% (Rs 5 lakh and above) of the 2.5 million Indian passenger vehicle market. Known for its build quality and premium feel, Volkswagen has positioned itself in the higher end of the existing premium hatchbacks and sedan segments.  But if the latest plan comes through, it will open up the company's play in the sub Rs 5-lakh bracket as well. 
 
ET has learnt that the decision is likely to be taken in the next one year, and if the plan works, the product/brand will take at least 3-4 years to hit the market. By then, the company would have localized its products in India, with the local engine and gear box plant in place, which will be the key to producing value for money vehicles for India. "We are seriously considering a budget brand for India. We have looked at all the ideas which VW (HQ) had looked up for China. My teams here have been working very closely with the Chinese and German counterparts; we have the complete list of all the ideas that they have generated, and we know each and every idea. We are looking at what will be most prudent and suitable for India," Mahesh Kodumudi, MD and Chief Representative of Volkswagen India, told ET. 
 
"We are seriously considering a budget brand for India. We have looked at all the ideas which VW (HQ) had looked up for China. My teams here have been working very closely with the Chinese and German counterparts; we have the complete list of all the ideas that they have generated, and we know each and every idea. We are looking at what will be most prudent and suitable for India," Mahesh Kodumudi, MD and Chief Representative of Volkswagen India, told ET.
 
Read complete story in the Economic Times.
 

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