First Volkswagen Dacia/Datsun challenging low cost car could be first built at China

After the first big announcement that German car making behemoth Volkswagen is indeed looking at a low cost car brand was made at Detroit this year, more details about VW’s push into the low cost car segment have begun to arrive onto the interweb. One such detail is a Reuters report quoting an unnamed Volkswagen official. The official has noted that the first car under Volkswagen’s low cost car brand could be built in China, for the Chinese domestic market. The Chinese car market plays host to 3 million budget cars each year and it is this massive volume Volkswagen is looking at.

Previous Generation Volkswagen Polo Hatchback

Previous Generation Volkswagen Polo Hatchback used as an illustration

The Volkswagen low cost car brand is expected to take on cars from low cost brands like Nissan’s Datsun and Renault’s Dacia. The low cost car brand that Volkswagen is said to be developing is expected to position all its cars between the 5,000 and 10,000 Euro mark. Like Nissan’s Datsun, Volkswagen is expected to use older car platforms for the low cost cars. This move is expected to give the German car maker cost efficiencies as Volkswagen wouldn’t have to invest big amounts of money to develop new cars from scratch.

By the looks of it, older generation versions of the Polo are expected to be the kind of cars that Volkswagen’s low cost car brand is expected to host. This is an approach that Nissan’s Datsun will follow. The previous generation Nissan Micra(Known as the March in many international markets) will be one of the first low cost hatchbacks to be sold under the Datsun brand. Expect the older generation cars used for the new low cost car brand to come with lesser equipment levels in order to be positioned at a lower price tag.

Volkswagen could use the Tantus brand for its low cost car range although the car maker hasn’t confirmed this rumor just as yet.  Also, it remains unclear as to when exactly Volkswagen will roll out its low cost brand. An formal announcement is expected to happen in the next couple of months with the first low cost cars from Volkswagen rolling out sometime in 2014. Meanwhile, the first of Nissan’s Datsun brand of low cost small cars will be unveiled in India, later this year.  In 2014, Datsun will launch two low cost hatchbacks in India while one hatchback is slated for Indonesia with Russia also lined up to receive a low cost sedan/hatchback.

Source Reuters

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