This is cheaper than the cheapest VW model in Europe, the Up!, which cost 9,975 Euros. According to Der Spiegel, an online German news magazine, the lineup could consist of a hatchback, sedan, wagon and SUV with sales starting as soon as 2015.
These models will be based on existing platforms so as to reduced production costs. Since these cars are targeted at emerging markets, expect the equipment level to be basic and functional. Perhaps, they may be equipped with just twin airbags instead of six airbags commonly found in the rest of the VW range. All these vehicles will be equipped with Euro 6 compliant engines with front-wheel drive setup.
I am not sure if the move by VW will cannibalize on the sales of another brand under the group, Skoda. The Czech automaker is also targeting at the emerging markets such as India, China and Russia. For instance, the Rapid sedan is built with such intention in mind.