Volkswagen will not launch Up! hatchback in India

In the not-so-distant past, rumours had surfaced that Volkswagen was considering the Up! hatchback for the Indian market. The car was even spotted in India on some occasions. Latest developments, however, indicate that the German auto major has scrapped the plan.

According to a report by Financial Express, Volkswagen reviewed the Up! and Fox, which are sold in Brazil and Europe. However, they were either to be too expensive or big for India. The company has now put small cars in the entry level category second on its priority list.

Volkswagen will now develop and launch more India-specific products, which will suit Indian conditions better. Among the cars in the pipeline, is a sub-four metre version of the Vento sedan, which is likely to make its debut in 2016-17. At present, Volkswagen does not have a contender in this lucrative segment, which has the Maruti Suzuki Dzire, Honda Amaze and Hyundai Xcent. With Tata Motors gearing up to enter this segment soon with the Zest and Ford preparing the Figo compact sedan, Volkswagen can't afford to be left behind.

Along with the compact sedan, Volkswagen will also develop with a compact SUV, followed by small cars in the sub-Polo category.