Fiat, Volkswagen and BMW plan to launch small cars in India

21 February 2008

Pune: The unveiling of the world's cheapest car, Tata Motors' Nano at just over Rs1 lakh has made India one of the world's leading markets in the sales of small car.

This small car will have company at the premium end of the market too, with European majors bringing in their premium small cars.

Not to be left behind in the race, Volkswagen now plans to introduce the new Beetle, and BMW also wants to come out with its Mini. The New Beetle and the Mini are expected to carry premium price tags of around Rs20 lakh.

Andreas Prinz, managing director, Volkswagen Passenger Cars, too has acknowledged the a positive demand and 'pressure' from the Indian market for Volkswagen to bring out a small car in the country.

Volkswagen is looking at importing the New Beetle, the iconic car that was truly the "people's car" in Germany. Import duties in India are the main reason for the car to be priced at approximately Rs20 lakh when it eventually makes it to Indian shores, as it will be imported as a completely built-up unit (CBU).

Due to low volumes estimated at the premium end of the small car segment, it is more likely that the car would be available with a single engine configuration, which will take some analysis on the part of Volkswagen, given the "different" road conditions in India.