Budget cars are the sensation in the automobile world, since long. Volkswagen are considering selling ‘budget cars’ for as low as 5000 euros (USD 6,500) that comes to around Rs. 3,42,160/- at today’s exchange rate. Europe’s biggest car maker is showing interest in emerging markets like India and plans for a cheap car in the range of 5000 and 10,000 euros head of the works council representing the firm’s employees, Bernd Osterloh, told the business daily ‘Handelsblatt’ adding that a model would be ready in 2 years and the company should have a aggressive approach in the growing economies like South-East Asia and Africa.
The company may introduce range of low-cost cars along the lines of the Volkswagen Up which was unveiled in Frankfurt in 2011 having front-wheel drive, a 3-cylinder 1.0-litre petrol engine plus an electric plug-in hybrid. All in all, a small and effectively priced hatchback. The company emphasizes that parts from other cars could be used to construct the new range. Also they might not market it as Volkswagen, but a new brand altogether.
Handelsblatt also reported that the Volkswagen Board will be presented the scheme for stepping in the low-cost car market later this year, area in which the manufacturer does not have active participation. This initiative from Volkswagen would make its presence noticeable in the car industry, for budget cars. The move follows closely on the heels of Nissan, which announced the revival of Datsun for emerging markets, including India and Russia.