Volkswagen and Suzuki to Build Small Car for Indian Market

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Volkswagen and Suzuki only announced their partnership on Wednesday and haven’t even signed the paperwork yet, but this didn’t stop the two companies from reportedly beginning development on a small car.

A report from the Economic Times, an Indian trading newspaper, indicates Volkswagen and Suzuki plan to develop a small car that would cost between $4300 and $5400 specifically for the Indian market. The new car could replace Maruti Suzuki’s best-selling Alto model. Maruti Suzuki is Suzuki’s Indian automaker.

“At some point we will need a replacement for the Alto,” said R.C. Bhargava, Maruti Suzuki’s chairman. “That price range is the entry level for Indian customers today, so we can’t leave that segment open.”

In addition to selling the new small car in India, the Economic Times said the car will also be sold in Europe. It would be priced between $4000 and $5000 in the European market, making it the cheapest car VW offers in Europe.

“Volkswagen will be greatly interested in a car below the price segment of the Up…and that is something we will need to check in our future together with Suzuki,” Fabian Mannecke, a VW spokesman, told the Economic Times.

Source: Automotive News

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