Although the model is primarily designed for China and poorer Asian countries, market players said it could also be successful in Russia.
The "3K" vehicle is a response to the Renault Logan, which costs 5,000 euros. If the design is successful, VW will sell the car in East Asia and China, where the German concern has lost its market share because it sells more expensive cars. The company is completing talks on building a car plant in India, where the 3K may be assembled.
The paper reported that the model might also appear in Russia. Volkswagen is currently in talks with the Economic Development and Trade Ministry on building a plant in Stupino near Moscow. But a company spokesman in Russia told Biznes that VW did not have any official information on the 3K project.
"Cheap cars are popular here," a senior VW dealership manager said. "Classic Ladas still sell well. But the new VW cars will feature solutions of the 1990s as compared with Lada vehicles based on the Fiats of the 1960s."
However, according to Russian carmaker AvtoVAZ, the market share of cheap cars is declining. Cars in the $3,000-$4,500 price bracket accounted for 25% of the Russian market in 2003 and fell to 19% in 2004. Cars in the $4,500-6,000 bracket tumbled even further from 30% in 2003 to 7% in 2004.
The paper was told that if VW wanted to sell the 3K in Russia, it would begin by importing cars from China. However, the company would have to lobby legislative amendments, as VW exports from China are currently prohibited.
