Nissan and VW to offer more low-cost models over next five years

Article by Anita Panait, on January 3, 2013

Carmakers around the world will begin to offer low-cost vehicles within the next five years to tap the growing demand for budget cars in fast-growing markets, according to IHS Automotive analyst Christoph Stuermer. The move is seen as a viable strategy to offset dwindling demand for vehicles in mature, sluggish markets like Europe and Japan.

Renault took the lead by launching the Dacia brand, and its partner Nissan is planning to sell Datsuns for as low as EUR2,300. Volkswagen is also more than willing to enter the fray, as it is planning to unveil a low-cost brand. Ulrich Hackenberg, VW-brand product development chief has told German magazine Auto Motor und Sport that VW is planning to sell a low-cost car brand priced at around EUR5,000 to emerging markets.

He acknowledge that there is a challenging market segment between EUR5,000 and EUR7,000. Hackenberg said the challenge would take out the right amount of content out of a car to make it more affordable, noting that those low-cost vehicles would not be sold under the name Volkswagen, but with their own brand. However, Volkswagen has yet to make an official decision on whether to produce a low-cost car. 

In another interview, Hackenberg said the planned low-cost vehicle would not be launched before 2016. He added that while the car would initially be introduced in emerging markets, selling the model in Europe is still a possibility.

On the other hand, Stuermer remarked that if carmakers want to survive, they will have to introduce low-cost models. He expects the global vehicle market to grow by 3.4 million cars between 2012 and 2015, adding that much of the growth could be tapped with affordable vehicles aimed at new buyers. He noted that now that VW is planning to sell low-cost cars, other carmakers will “ratchet up their efforts.”

Topics: nissan, vw, low cost car

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries