VW’s China-built budget car plan is taking shape


Volkswagen group makes progress on inexpensive line, despite improvements in luxury sector

Better than an Audi?

Better than an Audi? Image: Marc van der Chijs

Volkswagen Group, the biggest automaker in China, has announced it is making strides in engineering a low cost car for the Chinese market.

According to CEO Martin Winterkorn, speaking at the Geneva auto show, the group will be giving a public update on the project in the “foreseeable future.”

In 2013, the CEO claimed the car would be priced between €6000-€7000 ($6500-$7600) in order to compete with local carmakers in China whilst maintaining the German giant’s reputation for quality and safety.

In the last few years VW Group has relied on sales of luxury models like Audi, Bentley and Porsche to drive growth, making the move toward a discounted line unusual.

VW has claimed is also investing heavily in new and existing facilities to reach its annual production target of 4m units by as early as 2018.