Automotive Trends May Make 2015 ‘The Year of Sub Brands’

If there is believed to be a certainty in this ever-changing global economy, it is predicted to make quick changes in the auto industry. The shoppers in industrialized nations demand for plug-in electric vehicles than all-electric trucks or cars and they consider a high mileage cars that seek to get the most out of the traditional diesel or gasoline power-trains, while majority of motorists are keen on an entry-level vehicle.

VW focusing on Building a Cheap Range of Sub-Brands

German media informed last week that VW is the newest major auto manufacturer considering a sub brand to sell in developing markets in China, Russia, Brazil, and India.  Automaker is building new vehicles, which would cost $6500 to $13,000 that’s almost the half of the price of a new car available in the U.S. However, this concept of Volkswagen isn’t all that new.

Nissan Also Following the League

Nissan, the Japanese automaker said that its Datsun sub brand will only be shipped into emerging markets, when it disclosed its plans to renew the nameplate in this year. Renault, French multinational company is selling affordable Romanian-built Dacia in emerging markets. The key is keeping the price low for both shoppers and manufacturers.

With some European brands, like Peugeot, Opel, Renault, and Fiat getting weaker, the overall vehicle sales in Europe is expected to drop to less than 12million units in this year, compared to the 16 million new autos sold 2 years ago.

The cheaper Volkswagen sub brand would reflect the maker’s economical people’s car roots, but the cars won’t look that stylish, air-cooled, or venerable Beetle Type 1 that had reformed in 1997 as the latest FWD Beetle. It is now going to be on sale in Western nations as more masculine Beetle. German media reports show that a reasonably priced sub brand would use older Volkswagen platforms and engines and will be shipped without advanced safety features and other equipment, such as head airbags or air conditioning.  

VW’s current least expensive model is the Skoda Citigo that it sells for $11,700. Eric Felber, VW spokesman said that the idea of low cost brand had been on the schedule since long time. Remember when a VW Beetle was the ultimate low cost, yet economical vehicle? Automaker is ready to relive those days. The low cost sub brands will be the huge part of emerging nations and Europe by 2015, but not in the U.S.

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