VW to introduce budget brand in emerging markets by 2016-17

German auto major, Volkswagen is gearing up to introduce a budget brand with which it will target emerging markets. The company will get the go ahead to launch this brand from its board in the coming weeks.

The budget brand will be first introduced in China, where Volkswagen will develop and build cars with one of its two Chinese partners - SIAC or FAW. The first model from the new brand will be put up for sale by the end of 2016 or early 2017 and will cost less than than Euro 7,500.

If the brand meets the expectations of the company, it will seek to expand its operations to markets like ASEAN countries and India, which have potential for high growth. Volkswagen intends to sell 5,00,000 cars of the new brand annually.

The company does not intend to cut the prices of models in its existing brands like VW, Skoda and Seat. The low-cost brand will be the thirteenth from the VW stable.

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