The bigger-selling model will be an all-new small car based on the up! microcar concept that VW revealed in September at the Frankfurt auto show. VW will build a four-door hatchback off this new platform (code named MHB) which, like the Tata super-low-priced car, follows a rear-engine, rear-wheel-drive layout. Dubbed the A000 in VW’s platform hierarchy, the new microcar will be built in three different markets of the world from 2010. Production of the new microcar in India could begin by 2011. With a length of only 134 inches, the microcar is shorter than a Suzuki Alto, but a longer wheelbase is under development.
According to the industry grapevine, VW has set an aggressive price target of under $7,500, but a lot depends on the level of localization and cost management of the program. VW has been in talks with Indian companies including Bajaj Auto to help develop the car.
Source: Inside Line