Volkswagen’s on-off budget brand will launch in China in 2019, company bosses have confirmed to Auto Express.

Finally fast-tracked after years of being moved around Volkswagen’s priority list, the still-unnamed brand will make its debut with a small saloon and a mid-sized SUV, but will only be sold in China in its initial stages.

The aim is for the new marque to add to Volkswagen’s 2.99 million 2016 sales in China, and after a settling-in period there target Mexico, Brazil and even India. While Volkswagen insists it has no plans for the brand outside emerging markets, that’s also what Renault said about Dacia, its budget offering, during its early years.

A senior Volkswagen official has also confirmed that the brand, which has set Great Wall’s Haval brand as a Chinese sales and quality benchmark, is aiming for a price of less than 70,000 RMB (£8,100).

It will be built in partnership with VW’s Chinese joint-venture partner, FAW, using the PQ chassis architecture of the old Golf Mk6, production of which ended in 2013.

“The budget car is still under development. Even more right now,” Volkswagen development boss Dr Frank Welsch confirmed. “Two years ago the car you heard about was a sedan.