IT’S small but packs a punch.

The latest generation of Volkswagen’s Polo GTI is on sale across the UK, with the three-door manual costing £18,850. It will cost £630 more for five door version. Throw in the DSG gearbox and the price increases by £1,245.

The Polo GTI is powered by a 1.8-litre turbocharged petrol engine putting out around 190bhp.

Unlike the previous Polo GTI, this latest generation is available with a choice of six-speed manual or seven-speed DSG automatic gearbox.

The Polo GTI reaches 62 mph from standstill in 6.7 seconds and has a top speed of 146 mph.

VW, however, doesn’t believe power should come at the expense of efficiency.

It has a claimed combined fuel consumption figure of 50.4 mpg and carbon dioxide emissions of 129 g/km for the DSG or 47.1 mpg and 139 g/km for the manual.

The Polo GTI follows the design cues of its ‘big brother’, the Golf GTI. Compared with the standard Polo, new bumpers, GTI insignia, distinctive 17ins ‘Parabolica’ alloy wheels and red radiator grille strips and honeycomb grille distinguish it from the rest of the range, along with standard sports suspension - lowered by 10mm at the front and 15mm at the back.

At the front, LED lights are standard for the first time, while at the rear a GTI roof spoiler, tail light clusters in dark red, the black grained diffuser and chrome dual exhaust pipes continue the sporty theme.

On the inside, the Polo GTI features a leather sports steering wheel with logo and red stitching harking back to the Golf GTI, as do the gear and handbrake levers and floor mats with red beading. The check design ‘Clark’ cloth seats with black bolsters have been a GTI emblem since the first GTI in 1976.

The Polo GTI also has ESC Sport, which like on the Golf GTI, enables it to be adapted for use on a track.

Available as an option is a Sport Performance Pack with Dynamic Chassis Control which offers sportier steering, accelerator response and engine noise inside the car.