Volkswagen tried to make a highly fuel-efficient vehicle and introduced the Lupo as a direct competitor in the small-vehicle segment.
When Volkswagen introduced the Polo, it made it small to be driven in the cities. Over time, the little Polo has grown and soon was longer than it was supposed to be. On the other side, the Italians had the Seicento, the French had the Twingo, and Ford had the Ka. They were all competing for the same segment, and Volkswagen had nothing there. So, it invented the Lupo to fill the blind spot.

Its front fascia resembled the Polo, with round headlamps and smaller stationary lights next to them. Its short and steep hood was wider than its length. In the back, there was no room left for a sloped or shaped tailgate. It was just a vertical drop.

Inside, the carmaker provided plenty of room for the front passengers. The Lupo’s dashboard was mounted low and slim, so it didn’t take space from the front occupants. In the back, Volkswagen installed a bench for two, but it offered almost no legroom. As for the trunk, it was big enough for an envelope. But that was the price paid for a city car, good for four occupants and small enough to fit in most parking spaces where a compact-sized vehicle couldn’t fit in.

Under the hood, Volkswagen installed a choice of gasoline engines and a diesel. Later on, it added the Lupo 3L version that offered a record fuel efficiency.