New Delhi, Jan. 9: Volkswagen, the European car manufacturer, is likely to introduce a small car by 2009.

The car is likely to be based on the Polo, a popular European small car.

“It will come both as a hatchback and a sedan … though the hatchback will be introduced first in the Indian automobile market,” said Kevin Rose, executive director, international sales, Volkswagen AG.

Volkswagen had been trying to enter the Indian market for sometime and had even drawn up elaborate plans for a unit in Andhra Pradesh three years ago. The plan ran into trouble because of a bribery scandal that rocked the European car maker.

The car will be produced at its new facility at Chakan near Pune.

The company will begin production by the end of next year. Volkswagen is investing approximately Rs 2,450 crore to set up the facility.

Volkswagen also plans to launch a mid-size sedan, the Jetta, in the second half of this year.

Company sources say the Jetta will be available in petrol and diesel variants.

The Polo is available in six different engine sizes in the European market, but Volkswagen is expected to kick off with a 1.6 litre petrol and diesel variant in India.

“Later, we may bring the 1.4 litre petrol and 1.9 litre diesel variant also,” said company sources.

Volkswagen has a number of small cars in its global portfolio. However, most of its compacts, such as the Polo, the Golf, the Eos and the Fox, will be very expensive if homologated for the Indian market.