The environmentally friendly Volkswagen Polo Bluemotion will cost from £11,995 when it goes on sale in October.
With carbon dioxide emissions of just 99g/km and a fuel consumption figure of 74.3mpg, the car qualifies for the tax-exempt VED band A.
The car will be available in two models: Bluemotion 1 and Bluemotion 2.
Twin front and side airbags, a CD player, electric windows and a diesel particulate filter come as standard on each, but the Bluemotion 2 also has air-conditioning, rain-sensing windscreen wipers, and central locking.
The additional weight of the Bluemotion 2 means it emits 104g/km of carbon dioxide and returns 70.6mpg. It falls into the VED tax band B.
The car is powered by a three-cylinder 1.4-litre diesel engine and accelerates from 0 to 62mph in 12.8sec and has a top speed of 109mph.
The car will be offered in the UK in three- and five-door body styles.
VW Bluemotion prices
Bluemotion 1, three-door £11,995
Bluemotion 1, five-door £12,595
Bluemotion 2, three-door £12,845
Bluemotion 2, five-door £13,445
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