The 1.2 L MPI engine across the Volkswagen product offering in India will be replaced by 1.0 L MPI engine, the company said in a statement.
The 1.0 L MPI engine Polo will generate a peak power of 56 kW and a torque of 95 Nm.
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The German-engineered hatchback now comes with improved fuel efficiency of 18.78 kilomitre per litre.
It sells models such as Polo, Vento, Jetta, Passat and the Touareg in the domestic market.
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