The foreign companies see big future in India's automobile markets with the youth population increasing and the purchasing power going up. Premium foreign brand Volkswagen has introduced its new hatchback, Polo in Indian markets.

The bookings for the car have opened and the car would be delivered at the door step of the owner from March 8th. Currently Volkswagen has 40 dealers in India, and all would help Volkswagen in making the cars available for consumers.

It is competitively priced at Rs. 4.34 lakh (ex-showroom) at New delhi for its 1.2 litre petrol variant. The high-end diesel variant would be costing Rs 6.70 lakhs.

Volkswagen, with an aim to capture 8-10% in the coming 5 years has for the first time entered into the volume segment, their previous cars being Passat and Jetta both Sedans.

This new offering from Volkswgen would directly compete with Hyundai i-10, i-20, Maruti's Swift and A-star and Ritz, Chevrolet's Beat, Skoda's Fabia, and Fiat's Grand Punto. Volkswagen entered in this segment keeping in mind that this one of the most fiercely competitive segment has maximum growth at 55% (2, 25,000 units) so far this fiscal year.

The company is also planning to launch a sedan later this year.