'True to DNA': Volkswagen India to focus on premium cars, avoid hatchbacks

Brand image, taxation structure, and 'business economics' behind decision, says senior executive

German automotive giant Volkswagen (VW) has said it will focus on the premium sedan/sport utility vehicle (SUV) segment and avoid the mass hatchback segment.

“Customers don’t expect anything less than a premium product from VW. Customers expect a certain level of quality and driving dynamics. We have to stay true to that DNA. The day we go mass, customers will reject us,” says Ashish Gupta, brand director, VW India.

VW’s reason to stay away from the hatchback segment is also driven by India’s taxation structure.

Sub-4-metre cars with engines under 1,200 cc in petrol and 1,500 cc in diesel are categorised as small