Keeping the cost of the car so low is only possible by building and partly engineering the car in a low-cost country, with both parts and materials also being sourced locally. It’s likely that existing Volkswagen technology will be used in the new budget car, further helping to keep costs down.
Volkswagen’s technical chief, Ulrich Hackenberg, has previously confirmed that the car will eventually come in different body styles. The car will be sold under a new brand name that is yet to be confirmed.
Currently Volkswagen is focusing on creating the first example of the super-budget car for China, where it would also be built. Hackenberg told Autocar the car wouldn’t look cheap and it wasn’t designed to simply fulfil the need for mobility.
“It has to have good styling and the owner should be able to upgrade the specification over time. The owner wants to be proud of the car.”
Production of the new car is expected to begin in 2015. Initially available only in China, it may also later be offered in India.