According to Volkswagen R&D Chief Frank Welsch, petrol engined cars using 48V mild hybrid technology will replace the small displacement diesel cars in the next two to three years.
Due to the new emission regulations and real-world fuel economy testing coming into force, the production cost of the small diesel-powered cars is set to increase tremendously.
Already the profit margins of such small diesels are less and those costs being passed on to customers, Welsch believes that there is a slight chance of possibility in the market for smaller models.
"Today, diesel engines are more expensive [than petrol engines] and this distance is going to grow as we have to work to tougher standards," said Welsch.
"We have enough customers for diesel in cars like Polo now, but that might not be the case forever," he added.
"The 48V system offers better energy recuperation and near-silent stop-start, so you don't feel the engine cutting out and starting.
"With a cruising function too, you will achieve savings starting at around 6-8g/km of CO2 and in real-life conditions," he concluded.