This new brand, which doesn’t have a name yet, is set to launch in 2018, targeting budget-conscious families. The initial range of vehicles will include an SUV, a sedan, and a hatchback. All three will be produced in China, which is the target market for these new cars. This will mark the VW Group’s 13th brand.
According to Motoring, pricing will be from $11,500 to $15,900. The budget brand will figure heavily in the company’s expansion plans. Although initially set for sale only in China, if successful, it could roll out across Europe, India, and Latin America.
The idea of launching a budget car brand is nothing new for Volkswagen. It has long been planning the project, but couldn’t meet VW’s internal cost targets. It looks like they’ve finally made the numbers work and are moving forward with their low-cost brand.