New budget car will be developed with VW and be cheaper than the Alto
11 December 2009

Volkswagen will work with Suzuki on developing a new budget car for India, according to reports from the country.

VW agreed to take a 19.9 per cent stake in the Japanese microcar specialist earlier this week and India’s Economic Times claims the new budget car is a leading priority at the start of the partnership.

The Suzuki Alto, which is the firm’s best-selling model in India, where it is also built, would no longer be the entry-level model in Suzuki’s range when the new budget car is launched.

RC Bhargava, the chairman of Maruti Suzuki, Suzuki’s Indian subsidiary, told the paper that the car could cost as little as $4300 (£2500), which is double the price of the Tata Nano.

The smallest and cheapest car in the Volkswagen range will be the Up, and a VW spokesman told the newspaper that developing a model cheaper than the Up for emerging markets with Suzuki would be appealing.

“Volkswagen will be greatly interested in a car below the price segment of the Up and that is something we will need to check in our future together with Suzuki,” said the spokesman.

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