Volkswagen Planning to Enter Budget Car Market in China

VolkswagenVolkswagenGermany, 1938 > present98 models
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is reportedly prepping an entry-level car for the Chinese market for as soon as 2015, according VW Head of Product Development Dr. Ulrich Hackenberg. The car is expected to retail for 53,650 Yuan or the current equivalent of $8,500 (€6,450). 

The entry-level vehicle will have a size similar to the Up, but the two of them will not share any parts. The UpVolkswagen Up! Gen.1Germany, 2011 > present107 versions
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was created for the higher standards of Western Europe. It will receive its own brand name and if successful spawn other body styles on the same platform.

"It’s a tough job, but not impossible, and we’ve got the experience to do it. We’re still working to get to the targets." said Hackenberg.

The car will be built in China from Chinese-sourced components. 

If successful, Volkswagen plans to bring the concept to other emerging markets. To keep costs down, the car will have to be built and have its parts sourced from the market in which it will be sold. After China, India is the next most likely market for the car. 

Source: Autocar