Volkswagen introduced the third generation of the Polo in 1994, and in the following year, the German carmaker introduced the station wagon version, and, in 2000, it refreshed the entire lineup.
The little Polo was no longer the smallest member of the Volkswagen family and continued to increase its size. With a successful launch for the station wagon shape, the German carmaker decided to continue offering it after the 2000 life-cycle refresh.
There were just slight modifications for the 2000 Polo Variant just by looking at the car compared to its non-facelifted version. Yet, Volkswagen stated that only 30% of the car remained the same as before. Due to new pollution regulations, the carmakers had to use water-based colors, which weakened anti-rust treatments. To prevent that, the Polo received a full-galvanized treatment. Also, there were new headlights and taillights, which gave the small-sized Polo a more premium appearance. Both bumpers were also redesigned and got slightly bigger to decrease repair costs for accidents under 5 kph (3 mph).
Inside, there is a new design with inspiration from the car's smaller brother, the VW Lupo, but with better materials. Its instrument cluster, for instance, featured a binocular style for the speedometer and tachometer, with an LCD on the bottom of each dial. Above them, centered, the carmaker placed the fuel and temperature gauges. The owner could increase the trunk size from 390 liters (13.8 cu-ft) to 1250 liters (44.1 cu-ft) by completely folding down the rear seats.
Under the hood, Volkswagen installed the same engine lineup as on the rest of the Polo range. Their power ranged between 75 hp and 100 hp.