Looking at the huge potential that the fast growing compact car segment offers in India, German automaker, Volkswagen has decided that it will come up with its small cars in India soon.

These cars, said the company, will be smaller than Polo and will be made to tap the market for Volkswagen Polo, Beetle and Golf.

Talking to media, the Head of Communications in India, Kurt Rippholz said that the company is seriously thinking of coming up with something smaller that Polo and that they are working on it.

But, he further added, that nothing has been finalized as of yet.

Volkswagen began its operations in Chakan plant earlier this year and came out with the Polo cars. It made a total investment of Rs. 3,500 crore and can manufacture 110,000 units every year.

The automaker started on a smaller scale since it first wanted to asses the market and then move over to the scene.

The 2 million strong car market has 75 per cent as the small cars. Maruti Suzuki is the market leader with 55 per cent of the total stake and is followed by Hyundai, Tata Motors.