Following a disappointing run in the car industry during the last fiscal year, Volkswagen is planning to bring utility vehicles to India by 2018.

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Volkswagen is currently working to develop an India-specific compact sedan that will tuck under 4-metres. But it seems that the German giant has a much larger plan up its sleeves and is mulling to bring its range of utility vehicles to India. The Indian office is conducting extensive research at the moment, the data of which is being continuously sent back to its headquarters in Germany. A complete portfolio of utility vehicles is being worked on, that will be compatible with the company’s famous MQB/MLB modular platform.

With the highest selling vehicles including the Polo and Vento almost certain to be completely manufactured in India, an in-depth analysis is being carried for introducing multiple sport and multi-utility vehicles in India, most likely by the end of 2018. The Europe’s largest car maker may also consider making India a hub for manufacturing and exporting vehicles to different countries. India has tremendous potential in terms of manufacturing vehicles because of various local factors and government initiatives that Volkswagen is looking to take advantage of by aligning its products with global platforms.

The company is looking towards launching new cars in two of the most promising segments in the Indian automotive industry, namely, the SUV and MPV space, as it currently sells no vehicles in these categories. For the next few years, SUVs and MPVs have become an integral part of Volkswagen’s product program.

The utility vehicle segment was reportedly the fastest growing segment in India during the last fiscal year, accounting for nearly a fifth of the whole market. So, if Volkswagen wants to capitalise in this segment, they will have to bring in their UV’s before or by 2018. The company is keeping high hopes from this segment because their sales in India has nearly halved from 78,000 units sold in 2011 to 44,000 units in 2014.

Volkswagen also mentioned that they are not planning to bring an SUV which will be under 4-metres in length, directly signifying that their upcoming product will compete more with the likes of the Renault Duster and Mahindra XUV500.

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