VW Counters Datsun Launch With Low Cost Brand

Published: Thursday, March 22, 2012, 12:14 [IST]

Its not even been one day since Japanese carmaker Nissan announced its plan to bring the revived Datsun low cost car brand to developing markets. Volkswagen has quickly responded by saying that it will also launch a new brand targeting emerging markets. Volkswagen board member Ulrich Hackenberg said that the new entry level brand will have small and fuel efficient cars in a price range of Rs. 3-4 lakhs.

Datsun, Japanese carmaker Nissan's entry level brand was launched on Wednesday, 21 March in Mumbai with Datsun program leader Ashwani Gupta revealing the company's strategy in emerging markets such as India, Indonesia and Russia. Nissan aims to increase sales by bringing Datsun low cost cars to emerging markets.

Meanwhile, Ulrich Hackenberg has revealed that Volkswagen's low cost cars will be built according to market requirements in different regions. The carmaker is also planning to manufacture cars locally, a similar strategy which Datsun will also follow.

India is a market where small cars have huge demand due to their low prices and running costs. Currently, Volkswagen's entry level car is the Polo hatchback which comes at a starting price of Rs 6.15 lakh. With this move, its quite clear that the German carmaker is aiming to grab the market share in India from Maruti Suzuki and Hyundai Motors. The low cost Volkswagen cars are expected to compete with Maruti Suzuki Alto, Hyundai Eon, Chevrolet Spark etc in India market.

Article Published On: Thursday, March 22, 2012, 12:14 [IST]

Read more on: #volkswagen #datsun #polo #low cost car

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