Volkswagen Prepping Two New Launches for the Indian Market

Volkswagen AG, is prepping for two key launches for the Indian market. A sub 4 meter sedan and a compact sports utility vehicle, set to arrive by the end of 2015, according to Indian Express.

The German automaker is relying heavily on these two models to revive its lackluster sales in India, determined to get these cars to showrooms over the next 12-24 months. A spokesperson for the company said that the design of the sub 4 meter Sedan is close to being ‘frozen’, with engineers at the company’s headquarters in Wolfsburg working diligently to get everything aligned.

The likes of Maruti Suzuki, Tata Motors, Hyundai Motor, Honda Cars and Mahindra and Mahindra have already made their presence felt in the sub four-meter sedan category.

The new compact Sedan is expected to have a similar wheel base as of Polo’s 2,456 mm. Reports also suggest that VW would position the new compact Sedan in the premium segment and are expected to price it above the Honda Amaze and Maruti Suzuki’s Dzire. Volkswagen’s new sedan is expected to launch by the end of 2015.

Coming to the compact SUV offering, the car that will be launched in India will be positioned in the same product category as the Renault Duster and Nissan Terrano.

Despite being the market leader in China, Volkswagen just has about 2.1 percent of the total market share, as its product range is considered more expensive. In effect, Volkswagen is planning indigenisation of its cars in an attempt to cut costs, especially on engines and gearboxes. The company is planning to invest $250 million in India over the next five to six years to set up a diesel facility, in an attempt to reduce production costs. The sale of company’s passenger cars fell 24 per cent during the first quarter of the year 2014, ranked at 6th place among 14 car-makers by market share.