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