Volkswagen is targeting a price of Rs. 4 lakh for its brand new car launching by this year-end or early next year. VW is ready to introduce its small car model Volkswagen Polo in the Indian auto market powered by 1.2L petrol engine. It aims to sell at least 25,000 units annually in India. The car will be placed in the A2 segment and will compete with models like Honda Jazz.
Skoda received a lukewarm response to its model Fabia and Honda Jazz was also slow in picking up volume sales due to its hefty price tag. Realizing the importance of price sensitive Indian market, VW is making no mistakes while pricing its new model.
VW currently has Jetta and Passat models in its product portfolio which are both high-end cars. However, it intends to generate volume sales with Polo and therefore it intends to price it extremely competitively.
VW has already invested nearly Rs. 3300 crores and has received fresh financing from the World Bank to the tune of Rs. 920 crores. However, the tenure for complete financing is not available as yet. The company intends to launch environmental friendly models and increase its market presence with more dealer networks.
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