These are the first pictures of Volkswagen’s all-new Up hatchback, a model poised to become the company’s biggest seller and a key component in its plans to assume worldwide market leadership by 2018.

Volkswagen will also manufacture the Up for the Indian market however it will be a four-door version and will be positioned below the Polo. Holding true to the look of the original concept, the production Up has a simple two-box silhouette. VW design boss Klaus Bischoff says the layout provides optimal space utilisation within a compact footprint, making the car highly suitable for city driving.

Among the more distinctive design flourishes is a large front bumper featuring a low-set, rectangular grille. This, together with round foglights and large, angular headlights, helps to give the Up a more expressive face than other recent new Volkswagens. The upright stance of the design points to a roomy cabin which will suit Indian families looking for a budget car. Pronounced wheel arch flares are aimed at emphasising the Up’s wide tracks, giving it a confident stance by small-car standards.

VW claims it has been able to provide the new car with class-leading levels of interior space through the use of a wheelbase that provides the Up with ultra-short overhangs. Along with seating for four adults, the Up also offers approximately 251 litres of luggage space, extending to 951 litres with the rear seats folded.

The 2007 Up concept used a rear-engined, rear-drive layout, which, according to Volkswagen boss Martin Winterkorn, provided the best possible packaging solution. But the production car has a more conventional transverse, front-mounted engine and front-wheel drive architecture, known as MQB.

Indian-market Up will get an all-new range of fuel-efficient petrol and diesel engines ranging from 1 to 1.2 litre. The biggest challenge for Volkswagen is to price this car competitively, we understand that the German manufacturer is targeting an aggressive Rs  3 lakh price point for the base version.

The Up will make its public-debut at the upcoming Frankfurt motor show and will be launched in India by 2013.