Volkswagen India has confirmed unveiling of its made-for-India compact sedan at the Auto Expo 2016 in February. Ahead of the unveiling, the cars are on the testing phase near the manufacturing facility in Pune.

Folks at TeamBHP snapped images of the compact sedan, said to have been named Ameo. The test car under black-colour camouflage seems to have tail lamps similar to the Polo hatchback. Being a sub-four-metre car, its boot is visibly short, in line with the Maruti Suzuki Swift Dzire. The face of the compact sedan is expected to be similar to the Polo hatchback, which the car will be based on.

The company has invested Rs 720 crore in the development of the new model for India. The investment is being used for development, setting up of new equipment and increasing production of the new compact sedan. This is a part of the Rs 1,500-crore investments announced by Volkswagen India at the beginning of 2014.

When launched, the compact sedan will be pitted against the likes of Swift Dzire, Honda Amaze, Tata Zest, Hyundai Xcent, and Ford Aspire. Though its specifications have not been released yet, it is safe to assume VW will continue with the current Polo engines that include 1.2-litre MPI and TSI petrol engines and the 1.5-diesel unit.