Volkswagen has announced that they will reveal their new compact sedan at 2016 Auto Expo scheduled for February next year in Delhi. Volkswagen has made Rs 720 crore investment for development of this project. The investment of Rs 720 crore is part of the Rs 1,500 crore investments in India announced by Volkswagen at the beginning of 2014. 

The new compact sedan is expected to come with 1.2 liter petrol engine and possibly a 1.5 liter diesel engine, both mated with 5 speed manual transmission. It is expected to share same platform as of Polo hatchback. The new compact sedan should likely compete with Ford Aspire, Honda Amaze, Tata Zest and other compact sedans in India.