Ameo, which has been developed specifically for the Indian market, is the German auto major's first ever sub 4-metre sedan.
     
The vehicle, which comes with a 1.2 litre petrol engine mated to 5-speed manual gear box, will be manufactured locally at the company's Pune plant.
     
"Today is a very special day for Volkswagen in India, as we introduce our first ever made-for-India carline, Volkswagen Ameo," Volkswagen Passenger Cars India Director Michael Mayer said in a statement.
     
The Ameo underlines the company's philosophy of offering the best of technology and safety standards packaged at an attractive price, he added.
      
"Through the Ameo, we are confident of cementing Volkswagen's strong presence in the compact sedan segment and further expand the Volkswagen India family," Mayer said.
     
All variants of the compact sedan will come equipped with dual front airbags and ABS as standard. The vehicle would be available across all Volkswagen showrooms starting July 2016. The German company has invested Rs 720 crore to make this sub-4 meter car, developed and designed especially for the domestic market.
     
With this, Volkswagen has invested Rs 5,720 crore in the country since its entry in 2007. The Ameo will compete in the 25,000 units-a-month sub-4 meter car market that constitutes 8-10 per cent of the monthly volume.
     
This market has around half-a-dozen models with Maruti Suzuki's Dzire leading with almost 60 per cent market share, followed by Honda Amaze and Hyundai Xcent.