Coming soon: cut-price models from Germany
WITH CAR PRICES still relatively lofty, plans are afoot by German carmakers Audi and Volkswagen to launch cheaper versions of two existing models.
Both brands will take advantage of smaller engines and lower equipment levels in order to bring prices down, in the hopes of broadening their cars' market appeal.
Volkswagen Group Singapore is adding a 1.2-litre version of its popular Golf hatchback to pricelists next week. The Golf 1.2 TSI will slot in below the 1.4 TSI, which is currently the cheapest version of the car.
MORE: VW Golf 1.2 TSI review - How does the poor man's Golf perform?
Although its price will only be finalised after next Wednesday's auction for Certificates Of Entitlement (COEs), sources from Volkswagen say the 1.2 TSI will be around $8,000 cheaper than the Golf 1.4 TSI, which lists for $129,300 with COE at the moment.
Just as important, the 1.2 TSI will be the only Golf to have an Open Market Value of less than $20,000. This qualifies it for 60 percent financing, whereas the other models are only elegible for 50 percent loans.
Meanwhile, Audi Singapore plans to introduce a cheaper version of the Q3, its small Sports Utility Vehicle.
It will have a 1.4-litre engine and do without Audi's signature 'quattro' all-wheel drive system.
Currently the cheapest Q3 has a 2.0-litre engine with quattro. It sells for $217,450 with COE, while the upcoming 1.4-litre model could cost less than $200,000 at today's COE prices.
MORE: How buying an Audi Q3 1.4 TFSI is like choosing a two-bedroom condo over five-room HDB flat
Naturally, with their smaller engines the lower-priced Audi and Volkswagen models will be less powerful and slower than the current entry-level versions.
But their sellers will be hoping that buyers who weigh the loss of performance against the lower prices will eventually reach for their chequebooks.
And if they prove popular, they could well set a trend for future price-busting versions of existing cars to enter the market.
