VW is set to make a huge profit on every model it sells of its upcoming city car, the Up!, according to Autocar sources.
The Up!, a car being pitched against the Peugeot 107, Citroen C1 and Toyota Aygo, will be built for around 900 euro (£775) at its low-cost Indian assembly plant.
With VW planning to sell the Up! for around 9000 Euro (£7700), the firm will be making a substantial profit on every model sold.
The VW group plans to make around 1.4 million units a year, including the VW Up! and Skoda and Seat variants. The VW Up! was first seen as a concept car at the 2007 Frankfurt Auto Show.
It will be pitched below the Polo in the VW range but it should be seen as more of a replacement for the now extinct Lupo than the current Fox.
VW has also shown off different Up! variants at various motor shows, including the four-door Space Up! and electric Space Up! Blue.