VW Readies New Sedan for India

Volkswagen AG tells Reuters it hopes to boost its 2% market share in India by introducing a new, well-equipped mini-sedan there in 2016.

The unidentified car will compete in India's surging market for cars measuring less than four meters in length. Such vehicles are taxed at a 12% rate compared with as much as 30% for larger cars.

Michael Mayer, who heads VW passenger car operations in India, tells Reuters the new model will feature unusual equipment for a low-cost vehicle, such as driver/passenger airbags and an automatic transmission.

Mayer says VW will build the new model at its factory in Chakan on the same line that assembles the Polo supermini, Vento small sedan and Skoda Rapid small five-door hatch. The company said earlier it plans to expand annual capacity at Chakan to 200,000 vehicles from about 130,000 units currently.