After forming a new partnership with a 20 percent stake in Suzuki by VW, the automakers are wasting no time getting to work. Reports indicate that the two automakers are already developing a small car for the Indian market for their first joint vehicle.
According to a report from Economic Times, VW and Suzuki are planning on creating a new small car that will potentially replace the best-selling Alto model – currently produced by Maruti Suzuki.
In a discussion with the business daily, R.C. Bhargava said, “At some point we will need a replacement for the Alto. That price range is the entry level for Indian customers today, so we can’t leave that segment open.”
The Economic Times report went on to say that VW and Suzuki are planning to price the vehicle in the $4,000-5,000 range – which puts the new small car considerably lower than VW’s current entry-level offering, Up, which commands $8,000.
By contrast, the Tata Nano comes in around $2,500 – or half the cost of the potential new vehicle to come from the partnership between VW and Suzuki.
Fabian Mannecke, a VW spokesman, said that they were not targeting the Nano segment with this latest offering.
