Volkswagen India is engaged in developing a low-cost small car platform for the Indian automobile market. The platform will produce cars that would be placed below the company’s entry level car Polo and will compete in the small car volume based market segment. Known as the ‘A00’, the platform is based on an older model platform in order to lower the development costs and pricing of the car model.
According to Dr. John Chacko Volkswagen Group Chief Representative India & President and MD, the company wants more access to the Indian market by entering new market segments. It is contemplating launching existing car products in India with the requisite re-designing.
Moreover, the company wants to increase localization of products from 75 percent to 90 percent to benefit from lower manufacturing costs and capacity utilization.