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Volkswagen UP and Skoda Citigo India launch to get a final nod by year end

In an attempt to extend its presence in India and increase its market share, the German car maker Volkswagen will be launching its small car Volkswagen Up and will be placing it below Volkswagen Polo. However, a final decision in this regard is awaited. VW subsidiary Skoda on the other hand plans to introduce Skoda Citigo small car. VW currently caters to 30-35 percent market and intends to increase it by accessing the largest segment – small cars. Currently, VW has only one offering VW Polo in this segment but that is priced as a premium hatchback. With the Up and Citigo in India, the VW group will be able to increase its market share in the country.  

John Chacko, president and managing director Volkswagen Group in a recent report has expressed that the company is seeking the feasibility options for introducing small cars – Up and Citigo in India and will be catering to the largest and the most fruitful segment in the country. A decision in this regard will be taken by year end and the feasibility assessment is underway. Notably, VW Group has Skoda Fabia as the most low-priced car in India and the company believes that there is immense potential below that price band. If VW group brings the mass segment car, then, experts believe, there will be a sudden thrust in the sales of German cars as India prefers European design and luxury.  

VW Group though has been criticized to pitch in similar products as it has less platforms and more subsidiaries producing cars on the same platform. Thus an overlap and similarity is evident. Besides, car experts believe that entering the small car mass segment wouldn’t be easy for VW as there is already competition and there are more than sufficient offering. Alongside that VW will be increasing the localization content from current 75 percent to 90 percent but VW has clarified that it will not be launching India specific models.