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Volkswagen to Target Emerging Markets with Low-Cost Sub Brand

VW Lavida from China 1 photo
Photo: Volkswagen
Volkswagen was an automaker born from the desire to create a car for all German people, but now they focus on build quality and expensive features that people demand. To preserve its premium brand qualities, VW will create a low-cost sub-brand that will offer cheaper cars for emerging markets without creating panic in the developed markets over build quality.
Volkswagen head of research and development, Ulrich Hackenberg, has told Automotive News, this will sell vehicles that are specifically tailored for the demands of the local market.

“In India we build the Vento and a local version of the Polo that only costs around €7,000. In China we’re planning a more affordably priced car in the size of a Seat Toledo,” he said.

This sounds a bit like what Renault wanted with the Dacia brand, however this is a very tricks balancing act. Either you make a car cheaply, or you make a cheap car.

Here you really have to closely look at what can be done away with, but those cars would not be sold under the name Volkswagen, more as their own brand,” Hackenberg added.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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