Volkswagen confirms budget brand for 2018

Volkswagen has revealed that it will launch a new budget brand by 2018. This brand will be first introduced in China and could make its way to India, Latin America, eastern Europe, Baltic countries and Africa later. The budget brand is expected to help the German manufacturer to compete with Renault's Dacia and Nissan's Datsun brands.

Under the budget brand, Volkswagen will launch an SUV, sedan and hatchback. All the models will be built in China and will be priced in the range of Euro 8,000-11,000.

Last year, we had reported that Volkswagen had been trying to hit internal cost goals for the new brand. The company was finding it difficult to approve a car that did not meet minimum manufacturing standards or didn't allow it to make profits due to budget constraints.

Volkswagen had set itself a goal to become the world's biggest carmaker by 2018. To achieve this, it will have to increase its presence in markets such as India and Southeast Asia, where low-cost cars are in demand.

With the new brand, the Volkswagen Group will have a total of 13 brands under its umbrella.

Source: Autocar