VW launches the Polo

Volkswagen pulled the trigger for a major price war in the hatchback segment in the country by rolling out the Polo, one of its most popular models in the world, at a starting price of Rs 4.34 lakh (ex-showroom, Delhi). By pricing its best bet in the world’s largest compact car market lower than rivals Hyundai i20, Honda Jazz and Skoda Fabia and at par with category leader Maruti Swift, the German carmaker has made a major move in its race to replace Toyota as the world’s largest carmaker. “India is a key market for our overall strategic growth plans and the launch of the Polo affirms our commitment to offer quality products to customers at affordable prices,” said Neeraj Garg, director and board member of Volkswagen Passenger Cars division, Volkswagen Group Sales India. The Polo will sport 1.2 litre engine in both petrol and diesel variants, with petrol version starting at Rs 4.34 lakh and diesel at Rs 5.32 lakh (both ex-showroom, Delhi). By pricing the Polo at a discount to group firm Skoda’s Fabia compact, which failed to notch big numbers mostly due its premium price tag, Volkswagen is clearly eyeing the volume market. The Indian compact car market, which overtook Japan last year to emerge the world’s largest with sales of more than 8.9 lakh vehicles, has been reporting double digit growth for the past several months, making it a hot destination for global carmakers. Toyota, currently the world’s largest carmaker, will get a chance to respond to the Volkswagen move when it rolls out Etios hatchback, a brand new car developed primarily for emerging markets, later this year. While the performance of Polo and Etios in India may go a long way in deciding who becomes the world’s largest carmaker in the coming years, it’s not a dual; the Indian small car market is dominated by Maruti Suzuki, Hyundai Motor and Tata Motors in that order. Former global leader General Motors last month launched its Beat compact at a price range of Rs 3.34-3.94 lakh, while Ford will now be under pressure to price its Figo compact at highly competitive range. Volkswagen will start deliveries of the Polo petrol variant in March and the diesel variant in May. The car, to be built at the Chakan plant with an annual capacity of 1.11 lakh vehicles, will start with a localisation level of 50%. The Polo offers some standard features like the tilt & telescopic steering and the green-tinted heat-blocking glass, while the top models will come with safety features such as dual airbags and ABS.