Indian car market has a potpourri of small cars as the buyers here have a penchant for the same. Owing to this, Volkswagen is planning to develop a new line-up of small cars which will be priced much lower than its existing fleet. Reportedly, the move will help the auto company to achieve its 2018 target of attaining global leadership.
Industry experts believe that Volkswagen has a sound presence in the country, but if it wants to further improve the numbers, the German company still needs to catch up the pace. The most economical model offered from the company’s portfolio is Skoda Fabia hatchback (Skoda is a completely owned division of VW) and it is cited as the main reason for its reducing hold on the Indian auto market, as the model has been placed above Rs. 4 lac category.
It is speculated that the company is looking ahead developing its own version of Dacia, which happens to be a low cost brand of the French auto company Renault. Considering its sales, Dacia has been doing well in the emerging markets and has carved a niche in the hearts of buyers there.
The news has been confirmed by Dr Ulrich Hackenberg, the company’s board member for product development. He also said that Volkswagen will not be introducing economical models from its already existing brands and thus, will develop a totally new brand instead. The statement issued by him further said that Dacia has not marked its presence in certain markets and thus, the German auto maker has great chances to increase its foothold.
Industry experts believe that if Volkswagen pulls this move off, the auto aficionados will witness an industry leading quality in German models at an affordable price. Reportedly, these models will be introduced in a span of two years, which will surely ward off the competition in the small car segment.
