Volkswagen to use Polo design for compact car

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Mumbai, Jul 16: European car manufacturer Volkswagen Group, which is in the process of developing a new compact car under the Volkswagen brand specially designed for the Indian markets, will design the car on its Polo. “The new compact car from Volkswagen will be based on the design of the Polo," said Makham Dhalivaal, managing director, Volkswagen passenger cars at Volkswagen Group Sales India Private Limited. "We plan to start the assembly of the car in Chakan from next year end,” he added.

“It (the compact car) will be a premium hatchback and will fit in the higher end of the C segment,” said Joerg Mueller, president and managing director, Volkswagen Group India, adding that components for the car will be sourced from India. Volkswagen currently assembles the Passat and the newly-launched Jetta at their plants in India.

Volkswagen also plans to launch its ‘Phaeton’ in India next year. The ‘Phaeton’ is currently privately imported in the country. The company launched its popular model ‘Jetta’ in India on Wednesday. It also plans to get into the commercial vehicles segment in the country. Not divulging much detail about the commercial plan, Mueller told FE, “We will be appointing a head for the light commercial vehicles by August.” Further, indicating that this launch fits in the company's top-down strategy, Mueller said, “The company’s sales will get a boost in 2010 with the launch of the compact car.” The ‘Jetta’ will be available in three variants and two engines including 1.6L petrol trendline, 1.9L diesel trendline and top of the line Jetta 1.9L diesel comfortline. The car is assembled locally at the Volkswagen Group’s plant in Aurangabad and is priced in the range of Rs 12.97 lakh to Rs 16.67 lakh.

The Jetta’s competitors in the market include Volkswagen Group company Skoda’s Laura, Honda Civic and Toyota Corolla.

Quizzed how the company plans to place it with Laura, Mueller, said, “Laura fits in the same segment but the customers are different.” In India, Jetta will be positioned in the lower D segment while Volkswagen’s Passat, launched in 2007, occupies the upper D segment. Also available in the Indian market is Volkswagen Touareg, a sports utility vehicle, imported directly. Volkswagen plans to sell 12,000 units of the Jetta by this year end. Currently, the company has dealership network in seven cities, which it plans to take up to 15 this year and by 2011 to 120.