Volkswagen Budget Brand

Volkswagen has confirmed that it will be launching a range of cheaper cars to rival popular car brands in China such as Dacia.

The Volkswagen budget brand is expected to bring cars that are lower than £8,000 to the Chinese market from 2019, which will give it a chance of competition against other leading car brands in the country. The as-yet unnamed brand will only be available in China to begin with, but the group haven’t ruled out moving operations to other countries in the future. After China, the new brand will focus on bringing their cheaper vehicles to Mexico, India and Brazil.

Volkswagen Budget Brand

Originally, the plan for the new brand was to make a budget saloon car, but the plans appear to have changed this year with Volkswagen development boss, Dr Frank Welsch, stating that “In China, [with] the market research, [it] was quite easy to see that when we need a budget car, we also need a budget SUV.”

He also suggested that if they had one SUV model, it would be quite easy to have two versions – one with two rows of seats, and another with three rows.

“The budget car is still under development. Even more right now.”

DR FRANK WELSCH – VOLKSWAGEN

It’s clear that Volkswagen’s budget brand wants to start competing with other carmakers as soon as possible with the two-vehicle lineup. Welsch even admitted that the cars won’t be built on the MQB platform used in new Volkswagen cars, but “if you compare it to what Dacia is doing, it’s more like that.”

A budget brand is a great way for the Volkswagen-Audi Group to start selling cars in new markets. China's economy car sales are expected to be in the region of 40%, so this is a smart move for the company.

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