Renault’s budget Dacia sub-brand will soon get a worthy adversary as Volkswagen plans on introducing a new sub-brand of budget cars that will be sold in Europe. According to preliminary reports, these new cheap VWs will have a starting price of just 6,000 euros (4,800 pounds) and will be manufactured in China or India through existing collaborations.

Volkswagen plans three models that will be based on existing architectures so that they can lower the production costs as much as possible. The cheapest model will be a simple sedan priced from 6,000 euros, followed by a boxy estate at 7,000 euros and a basic MPV which will cost somewhere around 8,000 euros. All three cars will be powered by Euro 6 compliant engines and will get a front-wheel drive configuration.

Since the cars will be targeted at emerging markets, don’t expect a long list of equipment as these will come with just a few airbags, ABS, while for more money clients will be able to add air conditioning and other basic goodies.

Regarding the style of the cars, these will have a boxy look since this shape is stiffer and needs fewer pressings and it seems that the three models will need only 50 percent of the pressings necessary for the seventh generation of the Golf.

The production is expected to commence in the fourth quarter of 2014.

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