Nissan, Volkswagen look to drive in compact SUVs into India

MUMBAI: Volkswagen and Nissan Motor are considering an entry into sub-4 meter sedan and compact SUV space in India , touted as the fastest growing segment in the Indian car market. 

ET learns while Volkswagen has moved from a "consideration stage" to "final stage" of approval for development of the sub-4 meter project, while Japanese car maker Nissan Motor India has commissioned a study to explore potential of entering the sub-4 metre sedan (Sunny) and SUV segment. 


People close to Volkswagen India told ET, that the company has internally finalised the program, and it will reach out to the vendors with the request for quotations (RFQ) for sourcing of components shortly. 

"The project is codenamed VW 251\2. If the RFQ's hit the market in the next couple of months, the product will hit the market by mid-2016. The company hopes to bring in incremental volumes of 40,000 to 60,000 units per annum depending on the market condition," said the person close to the development. 

When contacted Volkswagen India spokesperson said the company is indeed considering the lucrative sub-4 meter sedan space along with compact SUV, but it is yet to give a final nod on the project. 

"If all decisions are taken and the projects are approved, we expect that the first set of new products from Volkswagen will hit the market in 2016," said the company spokesman. 

Initially the project was considered for the Indian market, now Volkswagen sees the potential of selling it in the emerging markets of BRIC nations where the company sells Vento as Polo, therefore the delay in go ahead for the project, say people in the know. 

What's interesting is that Volkswagen may hire an Indian company for engineering and design the sub-4 meter and it has explored possibility of working with Defiance, a design and engineering firm of the Hinduja Group. 

"Volkswagen India is always looking for supplier with whom we can partner. In case of the sub-4-meter project no selection has been done so far," added the Volkswagen India spokesperson. 

For Nissan Motor India both a sub-4 meter Sunny and sub-4 meter SUV could become a key part of the product portfolio. 

People close to the Japanese car maker say, of the 10 products planned by Nissan Motor India till 2016-17, two sub-4 meter products are strong probable's, but the company is working hard to arrive at a right price-value equation. The request from Indian base has been made, but headquarter is yet to approve the projects.