German automaking behemoth Volkswagen wants the ever-growing pie of the budget car market in India. However, the automaker doesn’t have plans of diluting neither the Volkswagen nor the Skoda brands in the process of pandering to the lowest common denominator, in other words the budget segments of the car market. Instead, Volkswagen could take a brand new route into the budget car market in India with Spanish car brand Seat.
According to the FinancialExpress, Volkswagen has begun studying the feasibility of introducing the Seat brand for the sub-5 lakh rupee budget car segments in India. If all goes well, the Seat brand could enter India in the next 3-4 years. So, we’re looking at a 2017 launch time frame for the brand if plans fall into place. Known as one of the more youthful brands under the VW umbrella, Seat manufactures a range of cars based on Volkswagen group car platforms.
The Seat range of cars sell in Europe, Asia and Latin America. China is a major car market that Seat has entered recently and if Volkswagen adds India to Seat’s list, the automaker will have a large presence in Asia, one of the fastest growing continents as far as car sales are concerned. In India, the Seat brand is expected to sit under both Volkswagen and Skoda brands in terms of price and positioning.
The Seat brand enjoys near anonymity among car buyers in India and this will allow the Volkswagen group to start with a clean slate, especially when it comes to developing the Spanish brand as a purveyor of budget cars. Volkswagen will introduce a budget brand in China in 2016. If the German automaker finalizes the introduction of the Seat brand in India, the low cost car brand to be introduced in China may no longer be relevant in the Indian context with Seat meeting that need instead.