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Volkswagen planning budget sub-brand

By SYF77 on 27 Mar 2012

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Not long after Nissanís announcement to market low cost vehicle under the revived Datsun brand name in emerging markets, Volkswagen revealed plans to do so as well, under a new brand.

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VWís head of research and development, Ulrich Hackenberg, has revealed that Volkswagen's low cost cars will be built according to market requirements in different regions. Like Datsun, VW is also planning to manufacture cars locally.

He added that building a cheap car is challenging and the company has to closely look at how much content they can remove to make their vehicles affordable. Well, I guess they call take out all the airbags, ABS system, traction control and multi-disc CD player.

It looks like VW has the Indian market in mind during the planning stage. Hackenberg said that the new entry level brand will build small and fuel efficient cars in the price range of Rs. 400,000 (S$9.9K). In India, small cars such as the Polo are popular due to their low price and running cost.

The low cost Volkswagen models are expected to compete with the likes of the Maruti Suzuki Alto, Hyundai Eon and Chevrolet Spark in the India market.

VW Group currently has acquired 7 'sub-brands', namely Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and äkoda.

In my opinion, Volkswagen could have used Skoda to market the low cost vehicles in emerging markets instead of creating a new brand. True?

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Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.

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