No name for the economy brand has yet been decided, but will not be VW.

China will be the first market for a new budget Volkswagen brand in collaboration with First Automobile Works, a Chinese car maker.

The brand's launch has been long awaited, especially after Volkswagen's partnership with Suzuki for similar purposes was bitterly dissolved in 2015. Jochem Heizmann, board member responsible for China, elaborated that the company is launching the brand with a focus on the SUV market. "We want to be competitive in that segment,” said Heizmann.

It is believed that the first launch will be a mid-sized SUV, and that a sedan and hatchback are likely to follow." No official name for the brand has been decided but it will definitely not be 'VW'.

The cars of this collaboration will be sold in markets such as India, Latin America, Eastern Europe, the Baltic region and Africa. Volkswagen is also working with Tata Motors to increase its presence in the Indian market.

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