New vehicles are becoming ever more sophisticated and stylish in Brazil.

The VW Virtus is the latest of a growing number of compact saloons that, unlike many models previously sold here, are as up to date in styling and technical features as any western market (the Fiat Cronos out this month and the Toyota Yaris saloon in the second half are likewise).

VW's model is top of the class for roominess, especially in the back. Interior and exterior dimensions are close to the Jetta's, the 'next size up' model to be replaced in Brazil by the end of this year as a 2019 model. The redesign is larger and made its debut in its largest market, the US, at the Detroit show earlier this month.

Launch prices are sensitive as cost, unsurprsingly, is the decisive factor for most buyers. VW has been prudent in positioning this completely new car, and priced it accordingly.

The new Polo – launched late September soon after Europe's version, instead of years later as was once the norm for Brazil, starts at BRL50,000/US$16,000 and goes up to BRL69,200/$22,150.

The Virtus entry model is BRL60,000/$19,200 and the upper Comfortline and Highline specifications ask BRL65,200/$20,800 and BRL69,200/$22,100, respectively.

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No coincidence then the 2018 Honda City saloon (just launched) is in the same ballpark – between BRL61,000/$19,200 and BRL81,000/$25,500 – and complements the locally built Civic mid-size sedan. There is surely a place in the sun for all.

Engines account for price differences. The entry level Virtus has a 1.6-litre, 115 bhp (ethanol) normally aspirated, I4 engine, consequently burdened by 4% higher excise tax.

The other two have the I3, 'one-litre' turbo, 126 bhp (on ethanol) engine, which delivers 'two litre performance' but is levied less tax for actual being under a litre displacement. The maximum 200Nm of torque comes in at an early 2,000 rpm and dramatically provides top gear drivability while achieving outstanding fuel economy.

The new model, like the Polo, stands out in the crowd with sophisticated technology such as the active digital instrument cluster and interactive owner's manual accessed with a smartphone.

The Virtus, like the Polo, ahs been awarded top marks for passive safety, gaining five stars in Latin NCAP crash testing (head-on, side and pole collision) and an extra laurel for its potential pedestrian protection.

Some cost cutting and simplification to keep the price down is apparent. Cheap looking materials, no roof grab handles and minimal boot lining (size is a class leading 521 litres) are worth noting.

On the other hand, there are items that are still 'surprise and delight' in this segment – a central armrest with fore and aft adjustment, rear seat a/c vents and a USB port. Then you open the glove compartment and the undampened lid free-falls on to your knees.

There are no gas dampers to raise the boot lid and hold it open though the goose neck hinges do not crush luggage inside and the large opening eases loading and unloading. 

The Virtus also stands out also for its balanced yet less conservative design though the front section is identical to that of the Polo, another compromise to keep prices down. That said, some differentiation would be welcome.

Despite its troubles elsewhere with diesel and monkeys, VW has again come up with a great product. The Virtus is roomy, has lots of new tech, drives well and achieves a good balance between finish quality and cost. Scheduled maintenance and crash repair costs are lower, too.