Volkswagen Begins Suzuki Challenge With Up

Published: Tuesday, September 13, 2011, 15:44 [IST]

Volkswagen, the German carmaker has already chalked out plans to counter Maruti Suzuki's might in India just a day after Suzuki Motor announced its intention to walk out of its alliance with Volkswagen. Volkswagen India had plans to build its Up small car using the platform of the A-Star. But with the deal between the auto makers appearing to end soon, Volkswagen has decided to launch the UP in India on its own.

The Volkswagen Up will take on market leaders such as the Maruti Suzuki Wagon R and the A-Star. The Up is a compact car that was recently unveiled by Volkswagen. This will be Volkswagen's cheapest car below the Polo. The Up is aimed at the entry level hatch back segment.

Volkswagen is working on a specially developed Up variant that will be launched in emerging markets such as India, Brazil and Mexico. The new variant will be cheaper than previously though. This will help Volkswagen market the Up as a clear competitor of Maruti Suzuki's hatchbacks.

Suzuki Motor and Volkswagen are now involved in a skirmish of words after the German carmaker accused Suzuki of violating the terms of its alliance when Suzuki decided to buy diesel engines from Fiat.

Volkswagen India had previously planned to build the Up using a Maruti Suzuki platform while sourcing other parts from local suppliers to reduce the car's price. But with the recent tussle between the two carmakers, we expect the Up will be priced slightly more than expected.

Article Published On: Tuesday, September 13, 2011, 15:44 [IST]

Read more on: #volkswagen #a star #wagon r #small car #hatchback

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