The Polo Mk2 (or Typ 86C) was introduced in October 1981, with the major change being the introduction of a third body style with a steep (almost vertical) rear window, in addition to a version resembling the original Mk1 shape with a diagonal rear window.
These two body styles were called the Wagon (in some markets) and Coupé respectively, although in fact both were three-door hatchbacks, and in some markets the Wagon designation was not used, with that car being simply called the "Volkswagen Polo" without a suffix.
The sedan version was now called the Polo Classic, and the Derby name became extinct.
Production was expanded to Spain in the mid-1980s following Volkswagen's takeover of SEAT.
By 1983, the one millionth Polo was produced.
The second million were produced by 1986.

The Polo competed in the supermini sector with its new rivals like Austin Metro and Ford Fiesta and it was one of the largest superminis in production at this time, meaning that it was close to larger cars including the Ford Escort in terms of size, space and price.
Within two years of its launch, however, it was faced with competition from a wave of new rivals, particularly the Fiat Uno and Peugeot 205.

The Polo Mk2 was used extensively by Volkswagen to develop future innovations, for example supercharging with a 40 mm G-Lader supercharger in the GT G40 version.
A 60 mm G-Lader would later be used on the larger and more technically challenging G60 engine used in the Golf and Corrado.

A fuel efficient two-cylinder diesel was prototyped in the mid 1980s with a G40 supercharger to overcome its small capacity, although this did not make it to production.
A high fuel efficiency model which did make production was the petrol-engined Formel E (E for Economy), introduced at the launch in 1981 with a 1.1-litre engine and from 1983 with a 1.3-litre engine, overdrive top-gear ratio and an early stop-start ignition system (called "SSA") which would cut the engine when idle for more than two seconds to save fuel whilst temporarily stopped in traffic, and restart the engine on moving the gear lever to the left in neutral.

Similar systems were later used on the Volkswagen Golf Mk3 and various systems from other car manufacturers.

It was a popular import in the UK, competing with the likes of the Peugeot 205, Fiat Uno and Nissan Micra.
Its reliability and build quality were among the best to be found on a small car of this era, and in the years since then it went on to achieve a higher survival rate than many of its competitors.

The Polo Mk2 was available with the following engines:
1,093 cc straight-4 petrol (1981–1983)
1,272 cc straight-4 petrol (1981–)
1,043 cc straight-4 petrol (1983–)
1,272 cc straight-4 petrol with a Pierburg 2E3 carburettor producing 41 kW (55 hp) (1983–1990).
Coupe S in UK, GT elsewhere in Europe
1.272 cc straight-4 petrol with multi-point fuel injection producing 55 kW (74 hp) (1991–).
GT version only.

1,272 cc straight-4 supercharged petrol with 83 kW (111 hp). (
G40 version 1987 only)
1.3 L straight-4 diesel (1986–)
1.4 L straight-4 diesel (1990–)
However, some engines were only available on certain markets.
For example, the British market never received any diesel-engined versions of the Polo, even though the diesel engine was already available on many similar cars by the end of the 1980s, namely the Ford Fiesta, Vauxhall Nova and Peugeot 205.
The Polo Mk2 (or Typ 86C) was introduced in October 1981, with the major change being the introduction of a third body style with a steep (almost vertical) rear window, in addition to a version resembling the original Mk1 shape with a diagonal rear window. These two body styles were called the Wagon (in some markets) and Coupé respectively, although in fact both were three-door hatchbacks, and in some markets the Wagon designation was not used, with that car being simply called the "Volkswagen Polo" without a suffix. The sedan version was now called the Polo Classic, and the Derby name became extinct. Production was expanded to Spain in the mid-1980s following Volkswagen's takeover of SEAT. By 1983, the one millionth Polo was produced. The second million were produced by 1986.
The Polo competed in the supermini sector with its new rivals like Austin Metro and Ford Fiesta and it was one of the largest superminis in production at this time, meaning that it was close to larger cars including the Ford Escort in terms of size, space and price. Within two years of its launch, however, it was faced with competition from a wave of new rivals, particularly the Fiat Uno and Peugeot 205.
The Polo Mk2 was used extensively by Volkswagen to develop future innovations, for example supercharging with a 40 mm G-Lader supercharger in the GT G40 version. A 60 mm G-Lader would later be used on the larger and more technically challenging G60 engine used in the Golf and Corrado.
A fuel efficient two-cylinder diesel was prototyped in the mid 1980s with a G40 supercharger to overcome its small capacity, although this did not make it to production. A high fuel efficiency model which did make production was the petrol-engined Formel E (E for Economy), introduced at the launch in 1981 with a 1.1-litre engine and from 1983 with a 1.3-litre engine, overdrive top-gear ratio and an early stop-start ignition system (called "SSA") which would cut the engine when idle for more than two seconds to save fuel whilst temporarily stopped in traffic, and restart the engine on moving the gear lever to the left in neutral.
Similar systems were later used on the Volkswagen Golf Mk3 and various systems from other car manufacturers.
It was a popular import in the UK, competing with the likes of the Peugeot 205, Fiat Uno and Nissan Micra. Its reliability and build quality were among the best to be found on a small car of this era, and in the years since then it went on to achieve a higher survival rate than many of its competitors.
The Polo Mk2 was available with the following engines:
1,093 cc straight-4 petrol (1981–1983)
1,272 cc straight-4 petrol (1981–)
1,043 cc straight-4 petrol (1983–)
1,272 cc straight-4 petrol with a Pierburg 2E3 carburettor producing 41 kW (55 hp) (1983–1990). Coupe S in UK, GT elsewhere in Europe
1.272 cc straight-4 petrol with multi-point fuel injection producing 55 kW (74 hp) (1991–). GT version only.
1,272 cc straight-4 supercharged petrol with 83 kW (111 hp). ( G40 version 1987 only)
1.3 L straight-4 diesel (1986–)
1.4 L straight-4 diesel (1990–)
However, some engines were only available on certain markets. For example, the British market never received any diesel-engined versions of the Polo, even though the diesel engine was already available on many similar cars by the end of the 1980s, namely the Ford Fiesta, Vauxhall Nova and Peugeot 205.
Volkswagen Polo