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Reuters/Punit Paranjpe
Hold your horses.

Problems mount for Volkswagen as it abruptly halts sales of its popular Polo hatchback in India

By Svati Kirsten Narula

Volkswagen dealers in India were instructed today (Oct. 7) to hold back all Polo vehicles until further notice.

A VW spokesman told Reuters that the suspension was due to “technical issues,” and that the company is still gathering details, but that the sales halt is not related to the company’s widening diesel emissions scandal. Regardless, this couldn’t come at a worse time for the German automaker, which is facing staggering costs from its attempts to cheat on air pollution tests. UBS estimates that the automaker could end up shelling out a whopping €35 billion ($39 billion).

The Polo is a small and sporty hatchback that is popular in India, though it lags behind less expensive offerings from rivals like Suzuki and Hyundai. Two-thirds of all the cars VW sold in India last year were Polos, according to Reuters.

Volkswagen was not immediately available for comment.