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VW to compete with Honda City with a new sedan; expects good sales due to cheap car loans

German auto maker Volkswagen is set to remove Honda’s supremacy in the premium mid-size segment in India, with the introduction of a new executive sedan in the 2nd half of this year. With low-cost car loans, the company expects it to sell easily.

To be named as Vento, it is designed mainly at the Honda City, which is the leader in this segment, when it was first introduced in September 2008, recording sales of about 4,000 units a month.

The new sedan uses the same platform as the Polo, a premium hatchback introduced by VW in February. The company will use the same tactic for the Vento that it has for the Polo, by placing it in the premium segment, aligned with VW’s higher brand value in the country.

The company has not yet disclosed the price. But the industry experts say the Vento will cost Rs 9,00,000-10,00,000, while for Honda City it is Rs 8,59,000 for the entry model and Rs 1.1 million (Rs 11.04 lakh) (ex-showroom, Mumbai) for higher-end model.

The aspect where the VW sedan is anticipated to beat the City is the diesel engine alternative to be available with the Vento. Honda does not have a diesel alternative on any of its cars. The Vento will be sold in diesel as well as petrol models, and fitted with the Polo’s 1.6-litre petrol engine.

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