Volkswagen aims at bringing a budget brand in India

Wednesday 04 June 2014, 16:20 PM by

German car-maker Volkswagen has been known across the global platform for producing cars that come with reliability and quality assurances. Recently the German car-maker was in news for making an attempt for studying a budget friendly brand. In China, Volkswagen has already initiated a move in this regards and expects to do the same for the Indian market.

Volkswagen aims at bringing a budget brand in India |
Volkswagen aims at being a budget brand in India

Given stringent quality standard procedures followed by Volkswagen, the products launched here come at a premium price tag. Currently, the brand does not have any variant priced under the Sub 5-lakhs bracket, thereby making it a difficult reach for the non premium customers. Mahesh Kodumudi, MD, VW India, stated to ET, “We have looked at all the ideas which VW 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." ET further stated that the decision may be taken by next year and would require about three to four years to reach the market. In the meantime, the brand shall work on means to localize the products by setting up engine and transmission plants here.

Mr. Kodumudi further added, “India is one of the most brutal lowest retail markets in the world. What might be a low-cost model in China, may still not be low-cost in India.” In the meantime, till the time budget versions are launched, the company may focus on working on delivering better service and spares without compromising on the quality aspect. Recently, it was also being said that Volkswagen India shall foray into the exponentially growing sub-compact sedan segment with a new sedan that is yet in development stage. Speculations suggest that new sub-four meter sedan from Volkswagen could come with the same 1.2 litre gasoline and diesel power-trains that powers Polo hatchback.

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