The largest European car maker Volkswagen is planning to roll-out a new compact sedan in the Indian market very soon. The new compact sedan is expected to be rolled-out in the price segment of Rs 6 to 8 lakh, where it will be taking on with the likes of Maruti Swift Dzire and Toyota Etios. The new Volkswagen Sedan would be rolled-out in the sub 4 meter segment, which will enable the car to qualify for the lesser excise duty segment.
As per the recent media reports, the new sedan / notchback will be designed on the platform of their popular UP! model. The new VW sedan is likely to come powered by a 1.5L engine, in place of a 1.6L diesel engine available in UP! model.
It is to be mentioned here that the cars with length of 4 metres or more, or engine capacity of more than 1,500 cc attract an excise duty of 24 percent. However, by trimming the car’s size slightly with up 1.5 L engine will only attract the excise duty of 12 percent.
The same formula has been adopted by the Indian auto giant Maruti Suzuki while developing the Swift Dzire model, which has met with a runaway success in the country.
