Volkswagen and Suzuki Motor plan to develop a new small car

The German automaker on Saturday launched production of its Polo hatchback, which had its European debut earlier this year, in its plant in western India. It said it sees the need for a smaller car in the Indian market.
"We know that we need a car below the level of the Polo," said Jochem Heizmann, a member of the board of Volkswagen. "We are working towards this but no decision has been made yet."
Volkswagen and Suzuki Motor plan to develop a new small car that would cost between $4,300 and $5,400 for the Indian market, following their recent tie-up, a newspaper reported this week. Volkswagen will buy a one-fifth stake in Suzuki Motor for $2.5 billion, tapping the Japanese firm's expertise in small cars and dominance in India as Volkswagen seeks to become the No.1 automaker, the companies said earlier in the week.
Volkswagen is looking at various opportunities for synergies with Suzuki, Heizmann said, declining to give details. He added the firm could consider bringing to India the cheapest car on its table, Up, which is priced at about $8,800.

Source: ET