“India deserves a good taxi,” said Stefan Schaller, board spokesman for VW’s commercial vehicles business. Volkswagen is planning to launch a new car in India, the Volkswagen Caddy as a low cost taxi for urban use. The commercial arm of Volkswagen may soon launch its new model, the VW Caddy, in India via a joint venture with an Indian partner.

The new Caddy will be a viable alternative to Tata Indigo and Tata Indica currently being used by Indian taxi operators. This would mark entry of the company in the Rs 43,000 crore commercial vehicle market in India. The existing model of VW caddy does not have any windows at the back – the windows are only in the front, but this mainly due to taxation rules in Europe. The existing model of the VW Caddy in the UK may not be feasible in India and the Indian version may come with a few modifications. Volkswagen has already announced that it plans to expand its network and product portfolio in India to occupy a larger market share. It had also announced that it will enter the commercial vehicle market in India as well.

VW Caddy has a seating capacity of seven passengers and is like a delivery van and a compact van rolled into one. Volkswagen has not announced its prices or other details but the car is expected to be priced around Rs.8-9 lakh in India.