Volkswagen To Launch Budget Brand In 2019

The Volkswagen Group will launch its much-awaited budget brand in China in 2019. The first vehicles to be manufactured will be a mid-sized SUV.

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The Volkswagen Group's much-awaited budget brand will launch in China in 2019. The brand will produce affordable cars for the masses.

Autocar reports that Jochem Heizmann, board member responsible for China confirmed this development at an announcement of the Volkswagen Group's 2016 financial results. The first vehicles produced in partnership with Chinese firm First Automobile Works (FAW) would launch with a focus on SUV segment.

Heizmann said, "We want to be competitive in that segment." It is expected that the first launch of the budget brand will be a mid-sized SUV and then a larger SUV and a notchback are likely to follow.

Heizmann also revealed that no name has been confirmed for the budget brand and also stated that they would not brand it as a Volkswagen.

Previously Volkswagen Group has struggled to build a budget car while still maintaining its minimum standards. It had to part ways with Suzuki while working on a similar project in 2015.

The cars manufactured by the budget brand will be initially sold in the Chinese market, other potential markets for these vehicles include India, Latin America, Eastern Europe, the Baltic region and Africa.

In another project, the German carmaker is also working with Indian auto major Tata Motors on vehicles for the Indian market. The project is led by Skoda, Volkswagen Group CEO, Matthias Müller confirmed that a range of body styles would be launched from 2019.

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Story first published: Thursday, March 16, 2017, 10:53 [IST]
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