VW’s budget car looking to come to India after China?

After showing multiple concepts of their low cost city car, VW finally took the wraps off the production hatchback - The Up! That was in 2011.

Now, while the Up! has still not been confirmed for the Indian market, Autocar UK reports that the German giant will have an all new low cost car for the Chinese market specifically.

But wait a minute, there is something for us Indians as well if the report is to go by.

While details such as the name and the powertrains have not yet been announced, we can assert based on Autocar UK’s report that VW are confident on launching the £5400 (INR 4.6 lakhs) super-budget car by 2015.

Ulrich Hackenberg, VW’s technical chief has been quoted telling Autocar that the car could be launched in two years time if the design is finalized by the end of this year. He further went on to say that the car could come in different body styles (like the Up!) but would certainly have a different brand name.

While the development of such a low cost car could be termed as a difficult job, VW are confident that they’ve the experience to achieve the necessary pricing and yet offer the core VW values such as build quality and desirability. In fact Mr. Hackenberg says ‘This car is not just about fulfilling the need for mobility. It has to have good styling and the owner should be able to upgrade the specification over time. The owner wants to be proud of the car.’

The hatchback (has to be a hatchback) further promises premium technology such as smartphone integration and a wide array of colors, both exterior and in the trim work.

As far as production considerations go, the parts of the car and even the materials used for making it would have to be sourced locally. While this low cost car is intended for the Chinese market, a second version of the car could be vying for the Indian market.

So that begs the question - is this recycled small car a replacement to the Up! or will it reinforce its presence in the sub-Polo segment? If the new low-cost brand is born to occupy price bands that are below Volkswagen price levels, what is the role of Skoda then?

[Source - AutoCar.co.uk; Image - The discontinued entry-level VW Lupo]