Rumor has it that VW is working on a compact sedan version of the VW Up!.
In India, all vehicles measuring less than 4-meters in length having an engine capacity less than – 1.5-litre (diesel) or 1.2-litre gasoline, is subjected to 12% excise duty against 27%. This is a huge saving and thus Volkswagen plans to add a boot to the Up! hatchback, resulting in a compact sedan measuring less than 4-meters in length. There are already two compact sedans present in India – Swift DZire and Tata Indigo CS. A sub 4-meter version of the Logan (Mahindra Verito) is set to be launched next year.