Tuesday, January 15, 2008

VW plans rival to Tata`s Nano


Launch will be under separate brand name.

German auto maker Volkswagen has hinted for the first time that it is looking at developing a low-cost car but under a separate brand name.

“Volkswagen cars are associated with certain standards of safety; they are not meant to be used only for intra-city travel. So if we look at a low-cost car it would be with a new brand name rather than Volkswagen, Audi or Skoda,” said Andreas Prinz, managing director of Volkswagen India’s passenger car business.

Prinz was replying to a question on how the company would respond to the challenge from Tata Motors’ Nano, priced at Rs 1 lakh, currently on display at the Auto Expo in Delhi.

Volkswagen’s possible entry would mark the first real competition to the Nano, which will be the world’s cheapest car on the road when it is launched in September/October.

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