VOLKSWAGEN will start selling diesel cars from July, in response to lowered taxation for such vehicles. VW Group Singapore managing director Olaf Duebel said it will start with the Touareg V6 TDI and Touareg V10 R50 (which has 750Nm on tap).

He announced this on Thursday at the Singapore Flyer, where VW marked its first year as its own importer and retailer here.

Meanwhile, VW will unveil a diesel-electric hybrid at the Geneva Motor Show.

The Golf TDI Hybrid concept is powered by a 1.2-litre diesel engine as well as an electric motor.

It is fitted with the lastest seven-speed DSG gearbox, and is capable of covering almost 30km on a litre of fuel in city-highway mode while emitting just 89g of carbon dioxide per km.

This story was first published in The Straits Times on Mar 1, 2008.