Volkswagen to launch budget car brand in 2018

Volkswagen is set to launch a budget car brand in 2018, according to chief executive Martin Winterkorn. The company will first target the Chinese market, but is also considering other territories, including India.

"We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback," Martin Winterkorn told Bild am Sonntag newspaper.

The brand - likely to comprise of a hatchback, a sedan and an SUV - will rival Nissan’s Datsun and Renault’s Dacia, among others.

The vehicles will be priced between €8,000 to €11,000, although the original plan was to keep the cost of owning such vehicles between €6,000 to €8,000. The German car maker has been looking at this proposition for some time, but failed to hit the internal cost targets.

During the same interview, Winterkorn also confirmed that the next supercar from Bugatti would be available in both petrol and hybrid versions.