VW management gives nod for budget car

Volkswagen's top management has now agreed upon to bring in a budget car for emerging markets of China, India and countries of Latin America. With the low cost car, the auto maker plans to tap the most voluminous segment in these markets.

On the eve of Beijing motor show, Hans Deman, responsible for the low budget cars at VW told that the concept and design are now in place. He further said that all the components will be manufactured in China only. 

In order to meet the desired budget constraint, the company has struggled at lot in last one year, but now it seems like they were successful in braking the cost barrier as the project is near to its completion. The manufacturer plans to bring a car model that costs around 6,000 euros to 8,000 euros which in India will be around Rs 3.8 to Rs 4.8 lakh.

The statement of Hans Deman seems to be more encouraging, as earlier in Geneva motor show, Dr Heinz-Jakob Neusser, chief of research and development at VW said, “We are still working on the issue of the brand, but we haven't made a decision on it yet. We know we are not prepared to launch cars that don't meet our maximum quality aspirations, and we know we face a challenge”.

Globally, VW has gained sound volumes with its Up hatchback. However, the brand is mostly known for manufacturing premium hatches and sedans across the world.

Source : Reuters