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Volkswagen to launch UP in India

By Motortrend India Staff   |   27 May,2008

Volkswagen is bringing popular small car UP to India at an attractive pricing of Rs 3 lakh. The car is expected to launch between the year 2010-11. UP is the cheapest car in Volkswagen’s global portfolio.

So far, the Volkswagen subsidiary Skoda AG’s Fabia is the cheapest car with a price range of Rs 5 lakh to 7 lakh. The company is known for its luxury cars like Audi and Pheaton. The German car manufacture is currently marketing luxury saloon Passat under its badge name, while subsidiaries like Skoda and Audi have a dedicated market in the premium sedan segment.

Volkswagen Indian President and Managing Director Joerg Mueller has denied any plan to manufacture ultra-cheap car. The company is developing the concept car UP into a user friendly car.

“The company has decided to launch the high technology UP over the next three years. The small car will meet the international safety and emission standards,” he said.

The company also plans to market the car which will ensure easy driveability on crowded Indian roads requiring less parking space. The company considers India as a favourable market for UP, as more than 70 percent cars sold fall under the small car segment.

Volkswagen will try to localise the car to a large extend to achieve a competitive price. The company’s two facilities in Aurangabad and Pune (upcoming) will be utilised to manufacture the car.

The rise in oil prices and stagnation of US and European markets are pushing the car companies to look for newer markets. In this scenario, Volkswagen is looking for an aggressive pricing strategy to compete with other small car manufacturers like Maruti Suzuki, Tata Motors, Hyundai and General Motors in India.

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