VW Taigun Delhi 2014-01

Volkswagen, which ended the first quarter of 2016 as the top-selling carmaker despite “Dieselgate” woes, has confirmed that its budget brand for China is on track for a 2018 launch. VW will be working with current Chinese partner FAW on this, with two SUVs in the pipeline, Autocar reports.

“In China we are working full steam on the budget car with our joint venture with FAW-Volkswagen. We plan for it to be an independent brand there,” CEO Matthias Müller said at the VW Group’s annual results press conference.

No further details, other than the confirmation that the first two cars under this yet to be named brand will be SUVs. A mid-size SUV should be among the duo, while sedan and hatch models should follow, Autocar speculates. Platform-sharing to reduce development costs will be employed, that’s for sure.

VW Cross Coupe GTE-02

There has been talk about VW selling off some of its brands to make up for the potential losses from the ongoing emissions cheating scandal, but the notion was quashed. With this China-only brand in the family (Müller confirmed that it will not be launched in other emerging markets), Wolfsburg will have 13 brands in its stable.

“To my mind I’ve expressed 13 brands is not a weakness but a strength. At these times, we are currently not looking into any such considerations,” said Müller.

The long time leader in the world’s biggest car market was outsold by General Motors last year, and a new brand and two new models in the hot SUV market could be what the doctor ordered. Renault’s Dacia and Nissan’s Datsun, focusing on Europe and Asia/Russia respectively, are the budget brands in today’s market.

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