There is some unfortunate news for visitors of the 2012 Indian Auto Show. They will not see the highly anticipated Volkswagen UP! at the Indian Motor Show this year.

Mumbai beach appearance raises questions

Some fans may be surprised at the news as the car was spotted on Mumbai beach earlier this year. Many were hoping that it would indeed be showcased at the annual Indian Auto Show. Some are dumfounded as to why it will not make an appearance. Many are wondering about the reasoning behind the car’s appearance at on Mumbai beach. Will the car be available as a private export? Is there a market for that in India?

Pricing proving to a major issue

The small car market is extremely competitive in India and is the number one selling category in the country. The price has to be right for small markets to sell well in India. Volkswagen are said to be having trouble of lowering the prices of its Volkswagen UP!, prompting reasons for it not be unveiled to India just yet.

Competitive pricing will certainly be an important factor to the car succeeding in the country, despite many agreeing that the car’s assets and attributes justify a higher price than other small cars. The Maruti Suzuki A-Star is one of the top sellers in the current small car market. The car also seat four people. The Volkswagen UP! does the same and is of a similar size to the A-Star. Customers in India may see no reason to sway to the UP! Over the A-Star if it is priced higher.

Some may assume that the UP! Will only be sold in India if it produced there. If that was the case, parts would be cheaper along with labour. Can Volkswagen make a bold move and produce the car India in the future?

One thing is for sure. The Volkswagen UP! will have a huge impact on the European market. It has been highly publicised as the “future of city cars”. It’s small yet practical, boasts tremendous economic benefits and is stylish too. Have Volkswagen made a mistake? Have they missed a potentially great market opportunity in one of the world’s biggest car markets?