VW developing new low cost SUV, sedan for China - Report

03/04/2015 - 00:32 VW Polo, Volkswagen Shrawan Raja

Autocar UK has learned from insiders that Volkswagen's long-running low-cost car program has taken a new turn.

VW Taigun in motion — The VW Taigun concept is a forerunner to an entry-level SUV for developing markets, but is understood to be unrelated to the Chinese budget car.

Previous work on the brand's budget car (dubbed 'Tantus' by the media) has been put on hold as it became a contentious issue within the company. The project had initially failed to meet strict cost targets and executives felt that a basic vehicle would not qualify for a Volkswagen badge.

The v2.0 low cost car project is underway with a sedan and an SUV which will share as many common parts as they can, reads the report. Though Autocar doesn't say, these cars would be in the A- or B-Segment, aimed at first time shoppers.

VW Polo Vivo sedan front three quarter press shot — The Polo Vivo sedan from South Africa is one of the cheapest sedans Volkswagen sells internationally.

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The budget offering would not be extended outside the Chinese market as Volkswagen does not compete on price and the brand is stern on being a premium option in the landscape of mass-manufactured car makers.

[Source - Autocar.co.uk]