Volkswagen, Skoda may tie-up to develop low cost car center in India

Here’s some interesting piece of information which could be a good news for Indian car market. The German car manufacturer Volkswagen and its Czech subsidiary, Skoda might join hands to set up a small car development center in the country. However, the plans doesn’t seem to be finalised as yet, but if everything falls through, the new development center might also be accountable for developing the engines for these entry-level cars. The location and other details are to be filled in by the car manufacturers themselves, which can be expected soon once the deal goes through.

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India and Brazil seem to the key markets for growth where small cars are always observed to be high in demand. So, we do not know what's there under the stone left unturned. There might as well be a new small for the India market from the likes of it. Actually, Volkswagen India’s plan to seek entry into the small car segment in the country is not something new. Why else will Volkswagen tie-up with Suzuki Motors two years back in the first place? The German car manufacturer thought it would be ideal to cater to the needs of the Indian consumers with a proper entry-level small car in the domestic car industry. But the Volkswagen’s plans have gone completely awry without a single project working in favour of the German car manufacturer.

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But, unwilling to give up, Volkswagen is delving new areas and this is just what it could be. Volkswagen could have brought its small car Up! to India if not for its pricing. Despite many efforts, the car manufacturer finds it difficult to get the Volkswagen Up! price to what was expected to be in the range of Rs 2-3 lakhs. The car has to be brought in as a Completely Built Unit, which makes it next to impossible to place the price as low as supposed. This is one thing, Volkswagen India might work out if the new proposed plant with Skoda is up an functioning. 

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