Volkswagen working on a compact car for Indian market

Volkswagen working on a compact car for Indian market

Volkswagen has just launched their Passat model in the Indian market. However, the company aims to become a bigger player in India and is working on a ‘completely new’ small car.

This new small car is being designed specifically for the Indian market which is largely dominated by compact cars from Maruti Suzuki and Hyundai.

The company however clarified that they have no aims to compete in the same space targeted by the upcoming Tata’s Rs. 1 lakh car.

Volkswagen said that the car is being developed in Germany and would be launched from VW’s greenfield facility at Chakan, near Pune. They are aiming for the launch in 2009.

In the meantime, they are also working on bringing their Polo and Jetta cars in the Indian market.

VW Polo is likely to enter India in 2009 and is likely to be powered with a 1.4-liter diesel engine. It would be priced between Rs 5-7 lakh.

Volkswagen passenger cars executive director (international sales) Kevin Rose added in a statement on their plans for the Indian market: “In successful markets, we have localization levels of 50-60%. We have begun local sourcing for our global operations, for things such as wire harnesses, and we will step it up. It is very small now but India has the potential to supply components for our global production. Our suppliers for the Indian operations will get volumes by supplying to our global operations.”