Volkswagen India is currently working out a plan to introduce a compact SUV (likely to be named 'Taigun') in the Indian market by 2016. It is based on the concept car which Volkswagen introduced during the Auto Expo 2014 in Delhi. As per our sources, Taigun will have two options of engines i.e. 1.0 Litre turbo-petrol and 1.5 Litre Diesel. The production version of this SUV may feature a longer bonnet so as to accommodate the 1.5 Litre Diesel engine.
The main constraint behind the introduction of this compact SUV in the Indian market is the cost. Company is currently working on various means to lower the cost and 'part localisation' is the most important among them. As per our sources, Volkswagen is going to manufacture more than 80% of the total components of this SUV locally thereby achieving a cost advantage over the competitors.
Addition of compact SUV to its current product portfolio will certainly help Volkswagen to boost the sales further. We believe that Volkswagen will keep the price of this vehicle in the range of Rs.8 lakhs to Rs.8.5 lakhs.