A new Volkswagen Polo which boasts fewer CO2 emissions than a Toyota Prius will go on sale in the UK next year.
VW claims the Polo BuleMotion is the most economical five-seater in Europe, emitting 102g/km – 2g/km less than Toyota's electric-hybrid.
The Polo uses a three-cylinder 1.4 direct-injection turbodiesel engine and has a combined fuel consumption of 72.4mpg.
It achieves greater efficiency than a normal TDI version using improved aerodynamics, low-resistance tyres and a gearbox with longer ratios.
The car has an uprated front spoiler and the addition of a rear spoiler and a smoother radiator grille to improve aero efficiency.
It also has a diesel particulate filter to help pump out cleaner exhaust fumes and a exhaust gas recirculation, which ultimately reduces nitrous oxide emissions.
The BlueMotion goes from 0-62mph in 12.8sec and on to a top speed of 109mph. Its 45-litre tank gives the car a theoretical range of more than 710 miles. Prices are expected to start at just over £10,000.
• Volkswagen says its first petrol-electric hybrid will probably be a Jetta in 2009.
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