German car maker Volkswagen will launch its new small car model VW Polo by March first week. The company already unveiled the car the Delhi Auto Expo in January 2010. The model will be available at the dealerships shortly. VW also intends to introduce another small car model VW Up! in India that will be placed below VW Polo. Later in the year, the company will also launch a sedan version of Polo.

Volkswagen has its manufacturing unit near Pune. The company intends to make India as its export hub for select models. The company will manufacture most of its popular models in India and export them to select markets like Europe, Middle East, Africa and South East Asia.

Volkswagen Polo is expected to be priced between Rs 4.5 lakh to Rs 5 lakh which is half the price of the model available in Europe. The main reason for such competitive pricing is that company has been able to beat the costs due to 80 percent localized content.