The World’s largest manufacturer is all set to call small with the upcoming budget brand. After many rumors for this, things not on schedule, everything has fallen into place and the Volkswagen budget car brand is all set to come first for China. Make in India did not appeal to Volkswagen we think as the India is also potentially a large market for the rest of the world, but it couldn’t cut the cake here due to policy and low demands of its cars. Volkswagen came in India after China entry and hence China suits more to Volkswagen and its rest of its sub-brands. Volkswagen cars will be exported worldwide and help Volkswagen budget car brand get more volumes.
Volkswagen budget car brand will be tying up with SAIC, the Chinese automotive giant that helps many brands sell their cars such as Chevrolet and many more. Volkswagen has been already in partnership with SAIC to sell their cars via re-branding them such as Santana, Passat, Lavida and Tiguan. Volkswagen budget car brand is all set to use the Santana platform to make these cars.
Volkswagen budget car brand quality will be there to an extent and parts will be used from the existing platform and will be kept at least cost to increase profits. These cars will target first time buyers worldwide, especially the growing markets such as Asia, Africa and India. This platform will spawn three cars as of now. An entry level hatch, a compact SUV and a compact sedan.
Volkswagen budget car brand wants to compete with the competition such as the Dacia from Renault and the newly formed Datsun from Nissan. As, even this time these brands turned out to be quite successful for their respective parent companies.
Expect a Kwid and Datsun rival from Volkswagen in India by the year 2018 as well! The race for volumes has just begun and its not far when manufacturers like Honda and Toyota also come up with something as most of them already have a history for these kind of ventures.