Volkswagen is almost set to launch its new budget brand for developing nations and can be expected by the end of this year. Like Dacia, Datsun and Lada brands from Renault-Nissan, which are capturing a huge share in the entry level market, Volkswagen wants a piece of the action too, with massive sales of budget cars in countries in China (3.8 million), India (1.2 million) and Russia (900,000). Volkswagen will make very practical, reliable and technologically basic cars for these markets that are very cheap to buy, to run and to maintain.
Volkswagen plans to launch a budget saloon which should cost about Rs. 5 lakh, an estate version costing Rs. 5.3 lakh as well as an MPV which will cost around Rs. 6 lakh. Later, a small 5-seater SUV too will be launched priced at around Rs. 6.5 lakh. Volkswagen will provide airbags and ABS on these cars as well as EPS and air-conditioning as an option. It is expected that all the cars will have a common wheel base of 2500 mm. The small cars though will possibly measure about 4.2-metres in length making them very practical family cars with quite spacious interiors.
To keep the costs at minimum, Volkswagen will use technology from older or outdated models, like the platforms to be used will be out of the current Polo sold in India. The engines too will be the 3-cylinder 1.2-litre petrol and diesel engines in the smaller cars and the 1.6-litre 4-cylinder petrol and diesel engines for the bigger cars, albeit with better fuel economy and lower emissions. The production of these cars will be done locally with heavy amount of local raw materials and components. The cars will also be designed so that there is minimum requirement of automation and robotic technology. The design of the cars will be less complicated so that the number of processes going into building them and technology required for manufacturing will be reduced.
These new cars will not be sold as Volkswagens and a new brand will be created as the thirteenth brand under the German giant manufacturer. It may also use the older ‘Tantus’ brand currently used of electric cars in China. The development of the products may be done in partnership with the Chinese car brand, First Automotive Works, from Changchun. So these new cars will bring a new age of budget cars that will be of high quality, more reliable, easy to drive and provide all the basic requirements in a car but at the same time be very cost effective and easy to maintain.
Source – CAR Magazine UK
