Volkswagen mulls entering utility segment in India

German carmaker Volkswagen, has revealed that it plans to explore the MPV and SUV segments in the Indian market. At present the company does not have any offerings in either of these segments.

The utility vehicle segment has been growing fast in India and across the world. In the fiscal year ended March 31, 2015, it grew by 10.82%. The overall passenger vehicle sales went up by a much lower 4%. The utility segment accounts of almost a fifth of the total market. It has sales of 5.53 lakh units a year. Manufacturers such as Toyota, Honda, Maruti Suzuki, Hyundai and Tata Motors are also shifting their focus to this segment. Volkswagen does not want to miss out on the opportunity either.

However, the company does not believe in the sub-4 metre SUV concept. Its upcoming product will be comparable to the Renault Duster and Mahindra XUV500, rather than the Ford EcoSport.

Among the vehicles that Volkswagen is planning to launch in India is the new Tiguan, which is yet to be unveiled. It will be built on the company's MQB platform and is likely to be powered by a 2.0-litre TDI engine.

Source: Economic Times