ALL Volkswagen prices except the run out old Passat models will go up by an average of 1% from September 2.

Volkswagen expects its rivals to increase prices by more than that allowing them to increase volume despite the price hike. Ford and Vauxhall have increased prices by an average 1.7 and 1.8% respectively. The price of options largely remains unchanged.

Prices will start at £7,945 on the road, for the Polo L 1.0 50 bhp three door, rising to £24,320 for a Sharan Carat VR6 with six seats and automatic transmission.

A hot-shot 16 valve version is soon to join the line-up and Volkswagen has deleted the three door version of the Polo GL and all versions of the Polo GLX. Polo sales are running at more than double last year's figures.