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The all-new Polo
VW plans to roll out the sixth edition of the car in Germany, Western Europe, South America and China in the coming months.
The aim is to make the Polo the "world market leader" for small cars, VW brand management chief Herbert Diess told reporters in Berlin.
Despite the furore over the company faking emissions tests on diesel cars, which was discovered in 2015, the new Polo model will also be available with a diesel engine.
Only 15 per cent of new Polos will be diesel, but Diess said the technology remained "very important" irrespective of the debate within the car industry over its future.
There will though not be an electric version of the new Polo, Diess told dpa.
VW is already well covered with its electric Golf, but has plans for more electric vehicles in the future, partly as a reaction to the diesel scandal.
The new Polo, being built at VW's Pamplona factory in Spain, will however have a natural gas option.
VW has sold more than 14 million Polos worldwide since 1975.