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Hot News: Volkswagen's Considering to Launch Budget Brand

Written By Hourpost on Tuesday, October 16, 2012 | 12:00 AM

In the latest development in its quest to become the world’s largest automaker by 2018, Volkswagen is reportedly considering launching a budget brand to increase its presence and sales in developing markets, such as Brazil, Russia, India and China, Reuters reports. The low-cost models could also be sold in Europe, as well. Volkswagen is eyeing rival Renault’s Romanian Dacia brand and Nissan’s recently-announced Datsun re-launch as potential competitors.

The cars will reportedly be priced in the $6500-13,000 range, and could include a van, wagon and small sedan. Volkswagen is one of the top-selling brands in China, but lacks a strong presence in Southeast Asia and India, two fast-growing budget-conscious car markets. Suzuki is one of the best-selling brands in India, something Volkswagen hoped to leverage with its short-lived partnership with the Japanese automaker. That partnership dissolved in 2011.

Although Volkswagen already has two lower-priced brands in its portfolio with Spain’s Seat and the Czech-based Skoda brand, the two brands have moved upscale in recent years with attractive styling and features, moving from regional offerings to Europe-wide brands, potentially leaving room in the entry-level segment for a new brand.

Despite challenging economic conditions worldwide, and especially in Europe, Volkswagen corporate-wide sales across all divisions are still up 9.7 percent year-to-date compared to 2011.

Thanks to: Motor Trend

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