We all know that Skoda is developing a new sub-4m SUV for the Indian market, and it was speculated that the Volkswagen would have an equivalent model. However, it has now been confirmed that VW has no plans to enter the sub-4m SUV space, at least for now, and will continue to focus on premium offerings.
While Volkswagen hasn’t revealed the reason behind this move, it could be because of the high competition in the segment. After all, the sub-compact arena demands not just innovation but also a fine balance of price and value, making it a challenging frontier to conquer.
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VW’s decision not to penetrate the sub-4m SUV segment reflects a cautious approach. Given the intense competition and price sensitivity in this segment, it is understandable that they might prefer to focus on premium models where they can leverage their brand strengths more effectively and establish a stronger foothold. Nevertheless, only time will tell if this decision pays off for VW in the Indian market.
In other news, Volkswagen recently unveiled a couple of new GT variants for the Taigun SUV and Virtus sedan. The carmaker has also announced the launch of its first all-electric model in the Indian market by late 2024. It will be the ID.4 electric crossover, which is expected to be imported via the CBU route. Once launched, it will compete with the Kia EV6, BYD Atto 3, and Hyundai IONIQ 5.
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