VOLKSWAGEN has unveiled a new concept car which uses one litre of fuel every 100km - equivalent to 285mpg.

The body was developed in a wind tunnel and is made from carbon fibre composites, and the car is powered by a single cylinder 299cc normally aspirated diesel engine.

Despite its lightweight construction the car is fitted with ABS, ESP and a driver's airbag as well as roll-over protection.

The concept car can carry two people with easy access after lifting the gullwing door. Although there are no plans to put the car into production, it hints at the possibility of designing and building a new family of vehicles from an ultra economical variant to a high performance version.