Volkswagen has decided to hike prices of its premium hatchback Polo in India for the second time this year. The company had hiked prices in February and now it is being followed with a similar increase in prices. Each variant of the Polo apart from “Cross Polo” and the base variants of each fuel option will receive a hike of around 2% of the ex-showroom price.
Currently, the base Trendline petrol variant has an ex-showroom price tag of Rs. 5.33 lakhs while the diesel one has Rs. 6.68 lakhs. Petrol version of Cross Polo is Rs. 7.08 lakhs and diesel is Rs. 8.38 lakhs. The GT variant of both petrol and diesel options of the Polo cost Rs. 8.48 lakhs. If there is a 2% hike in prices, both of them will cross the Rs. 8.5 lakh mark.
Soon other manufacturers may follow suit before they give hefty discounts during the festive season. This seems to be a tactical decision of Volkswagen rather than a forced one. Also, the base versions of each fuel option contribute only 10% to overall sales of Polo. This decision may also be intended to increase sales of base variants. But, a 2% may not affect the sales that much.
Hyundai Elite i20 which is the biggest rival of Polo is currently planning to overcome its handicap of a turbo engine as one has been spotted with a turbocharged engine in Spain. If that one comes to India, then Polo would not be the only premium hatchback with a turbo option. But, a 145 bhp hatchback is highly unlikely in India and the turbo engine on the Elite i20 is expected to produce that amount of power.
The company may hike prices of Vento too as it is a boot version of the Polo and its price was equally hiked in February.
