Volkswagen, the leading German automaker is planning a strategic entry of its new city car Up! and will be finalizing the plans devised for its launch in the Indian market. It is expected that this small car will be rolled out at a price lesser than the company’s existing sporty hatchback, Polo.
The Volkswagen Up! that was launched in the European market in the later half of 2011, is fetching favorable response and the company has confirmed that the car will be introduced in an Indian version to meet the diverse demands of the Indian buyers.
Mr. John Chacko, Chief Representative- India, Volkswagen Group commented that, "We are currently working on the feasibility to launch the UP! in the Indian market... I would like to take a decision by the end of this year."
The company had earlier confirmed that the Up! will be launched in the segment of the existing bestselling cars, Maruti Swift and Hyundai i10.
Mr. Chacko further said that the company is at present, concentrating on only about 30 to 35 percent of the Indian market and with the introduction of this new small car, it will be able to capture the rising demand of small cars that rules the Indian car market. Moreover, India is considerably a low cost market with high competition allowing easy entry to new ventures.
Even the subsidiary of the Volkswagen Group, Skoda has postponed the plans to launch a small car in the range of below Rs. 4 lakhs due to the feasibility issues arising from the safety and quality measures that needs to undergo some compromise for that range.
