Volkswagen Group currently has several automobile manufacturers under its wing. Currently most of these products are in the premium or luxury category and attract limited sales.
Now the German manufacturer is planning on introducing a budget friendly brand in newly emerging markets. Under this new brand they will introduce a compact SUV, compact sedan and compact hatchback.
Primarily this new budget brand by VW will be introduced in Chinese market. It will be developed in China as labour costs are lower than other countries. It will later be launched in several other countries, India too.
Currently automobile brands like Nissan and Renault have budget brand offerings, which include Datsun and Dacia respectively. They offer same vehicle with least amount of features and creature comforts.
Volkswagen will launch this new budget brand in 2018. They will study markets and try to achieve best prices for this new brand without compromising on safety and quality.