A developing market, like ours, needs inexpensive products. Not saying that luxo-barges aren't welcome, but let's face the reality, the small car is the number gainer here.
It's true that VW has a good presence in the Indian market but they still need to catch up if they're looking for big numbers. There's nothing cheaper than the Fabia (Skoda's a part of the VW family) and thats where they start losing the market share.
A sub-Fabia market is something VW hasn't explored yet, at least not in India.
Volkswagen is finally thinking of making their own version of Dacia. Dacia is the low cost brand from Renault, which has been doing great in the emerging markets.
We talked about it here but now the news is finally confirmed as Dr Ulrich Hackenberg talks about it in an interview with the UK-based Auto Express. He made it clear that it won't be a cheaper line-up of models from one of their already existing brands, VW is thinking about a completely new brand instead. He also mentioned that Dacia's still not present in certain markets and that's where VW has a bigger chance of increasing the foothold.
If VW pulls this one off, we'll see a lot of good quality but very affordable German cars on the road, a segment where the Nipponese have excelled!
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