Volkswagen Joins 800cc Race With Maruti, Hyundai

Published: Monday, February 20, 2012, 16:04 [IST]

The Indian small car market is no doubt dominated by Maruti Suzuki and Hyundai Motors. Maruti Suzuki's Alto has been the undisputed market leader thanks to its low price and efficient performance. Hyundai Motors has created a competitor of sorts in the form of the Eon. But the Eon's higher price has meant the Alto has no real competition. But the situation might change soon as German carmaker Volkswagen is planning to develop an 800cc car based on its Up small car.

Volkswagen's 800cc car plans have not been made official. But reports say this new car will be based on the Up small car. The engine powering this new car will be highly fuel efficient to suit the needs of buyers from India, China and Brazil.

Volkswagen is planning to become the world's largest carmaker by 2018 and India is a vital part of its plans. The German carmaker had hoped its partnership with Volkswagen will help it gain a bigger foot hold in the Indian car market but after its relationship with Suzuki soured last year, it has decided to take on its partner head on in India by building an 800cc car. The 800cc segment had been completely dominated by Maruti Suzuki. The only other carmaker to have a say in this segment is Hyundai.

The Volkswagen small car project will be an ideal deal for the carmaker as its current cheapest car is the Polo that is a compact car. The VW Up is expected to be launched in India in the coming few years. It is expected to be followed by the 800cc car. We expect this car to have a fuel economy of at least 25kmpl. It would be ideal if Volkswagen prices the car around Rs.2.5 lakhs for the entry level variant. Such pricing is vital if Volkswagen has to make any dent in the Alto's sales.

Article Published On: Monday, February 20, 2012, 11:33 [IST]

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