Volkswagen to launch small car below Polo

Volkswagen aims to become the number one car maker in the world by 2018, and the Indian arm is going to play a vital role in making the auto giant Volkswagen the biggest player.

According to industry sources, Volkswagen India has started work on developing a small car that would be positioned below the Polo. The car is going to be the company’s cheapest offering in India till date.

It will be offered in the Hyundai i10 and Chevrolet Beat segment and will have a high local content. The company’s aim is to increase local sourcing up to 75% from the current level of 60-65%.

The car will debut in 2012 at may be showcased at the 2012 auto expo. The car will start at around Rs. 3-3.5 lakhs, a lakh cheaper than the Polo.

Volkswagen India has also adopted is to increase local sourcing on its range of products in India to enjoy the cost benefit.