Volkswagen has just launched its Polo hatchback in Mumbai with ultra-competitive pricing of Rs 4.34 lakh (ex-showroom Delhi) for the base 1.2-litre petrol version, going up to Rs 5.32 lakh for the base 1.2-litre diesel (see table). However, the diesel version will be available for sale only around May this year. Bookings are on with immediate effect and deliveries of the petrol model will begin on March 8. At present, the Polo’s localisation level is 50 percent. A 1.6-litre petrol model is also on the cards but no dates have been announced.

The company is clearly committed to India and to establishing itself as a major player in the B segment. It also hopes to grab market share from traditional market leaders like Maruti Suzuki, Tata and Hyundai. At these prices the Polo even undercuts its sibling the Skoda Fabia, which is usually priced lower than the Polo in other global markets.

The Polo is powered by a 1.2-litre, 75bhp three-cylinder petrol unit and will be joined by a 1.2-litre, 75bhp, three-cylinder common-rail diesel engine version later this year. Both engines are mated to a five-speed manual transmission and the petrol and diesel versions will be offered in three trim levels called Trendline, Comfortline and Highline.