Volkswagen AG has plans for a new low-cost car brand that will be aimed at expanding markets, according to a report by German magazine Auto Motor und Sport. VW’s head of research and development Ulrich Hackenberg told the magazine that the carmaker has become an expert in producing low-cost vehicles and will soon roll out products that were modified to fit individual markets.
Hackenberg said that in India, it has the Vento and a local version of the Polo that is priced at about 7,000 euros ($9,300). For China, VW is planning to produce a cheaper car that has the same size as a Seat Toledo. He said that this segment between 5,000 and 7,000 euros is a real challenge. He explained that for the vehicle to be affordable, just the right amount of content should be removed from the car.
In Germany, the plainest VW Polo -- the 1.2 litre Trendline petrol version – is available in either white or blue and has a starting price of 12,450 euros (including VAT tax).
Hackenberg said that the automaker has yet to decide if a car (which would most probably be a spacious sedan but could also be a van) would be produced with a Chinese partner.