Volkswagen Australia has surprised everyone by introducing a Golf model at a stunningly low price. Just $21,990 plus on road costs gives you the prestige of a European machine rather than an Asian car. The chief of VW Australia, Anke Koeckler broke the news to a small group of Australian motoring journalists at a special event prior to the Paris Motor Show.

Ms Koeckler said this Golf is no stripped down special as it features the same safety features as the standard Volkswagen Golf. That is it features electronic stability control, ABS brakes and seven airbags.

The aggressively low price has been made possible by the strength of the Australian currency, but it also signals that VW Australia is very serious about its ambition to double sales in this country by 2018, possibly even sooner.

Volkswagen has long been a major player in Europe, where the Golf is frequently the number one selling car, and the German giant isn't pleased with its relatively minor placing in the Australia sales race.

VW would like to be the top automotive player worldwide by 2018 and introducing this keenly priced Golf to Australia is one of many moves in that global strategy.

The new Golf 77 TSI is powered by the same 1.2-litre turbo-petrol engine that was introduced to Australians in the all-new VW Polo that arrived here in May. An excellent design, this 77 kW unit has diesel-like torque characteristics, developing 175 Newton metres from 1500 to 3500 rpm. So new are the features of this petrol engine that it's almost as economical as a turbo-diesel.

We haven’t driven a Golf with this engine as yet, but we have an extensive experience with it in the Polo. It's a sweet unit that not only pulls strongly from low revs, but also is happy to work at the top end of the rev band.

Naturally it will have slightly less performance in the Golf as that car is larger and heavier than the Polo, but it should still provide plenty of grunt for a car in this price range.

The previously lowest priced vehicle in the range, the VW Golf 90 TSI continues to sell for $24,990 but has had its equipment levels increased to include alloy wheels and a multifunction steering wheel, yet it still sells for the same price as before.