The overall new car market in the UK might be down by 4.2 per cent as motorist struggle with higher interest rates and rising fuel costs but some manufacturers are bucking the trend.Volkswagen for example saw they registrations increase by 7.7 per cent in July and year to date their sales are up by nearly seven per-cent according to figures just issued by the Society of Motor Manufacturers and traders. New models such as the Golf, Passat, Polo and latterly the Eos continue to pull in new buyers to the VW brand despite stiff competition.The new VW Polo range was launched in February this year but recently the GTI variants in three and five door body styles have been added to the range.They are a smaller 'chip of the block' as at first glance you might mistake the Polo GTI for being a Golf GTI, as they look virtually identical. It's only when you see them side by side do you really notice the difference in size.The Golf GTI 3-Door with its 2.0-litre FSI petrol engine is much more expensive at £20,360 compared to the Polo GTI 3-Door with its 1.8-litre turbocharged petrol unit which is priced at £14,810. However this price is much more costly than the VW stablemate from the Seat brand, the new Ibiza FR 1.8T 3-Door with the same engine costs £11,975.Financial commonsense would say go for the Seat Ibiza but the brand value and desirability of any VW GTI model is very high for certain types of buyers. Not even the best of the 'pocket rocket' bunch, the new Renault Clio Renaultsport 197 priced at £15,995, would fit the bill as far as social brand awareness the VW GTI brands have enjoyed in the UK for many years.So if you are not to be swayed to another hot small hatchback what does the Polo GTI offer?Well it has virtually identical looks to the slightly larger and brilliant Golf GTI. The Polo is very roomy for its size. There is plenty of space in the front to make driving comfortable. The room in the rear, even with the three-door version is good enough for two adults and it has a large boot to match.Style wise the Polo GTI takes cues from its big brother Golf GTI and features a honeycomb front grille, twin tail pipes, rear roof spoiler, red brake callipers, lower suspension and 16 inch versions of the distinctive Golf GTI alloy road wheels.Inside the GTI styling specification and equipment includes, sports front seats, front electrically operated windows, heated and electrically adjustable door mirrors, semi automatic climate control air conditioning, leather trimmed three-spoke sports steering wheel, leather trimmed gear knob gear lever gaiter and handbrake, aluminium look pedals and a radio/CD player which is MP3 compatible. A useful multi-function computer is also fitted as standard as are an alarm and immobiliser. A whole host of extra cost options from satellite navigation to rain sensor wipers are available, which added £1,800 to the price of my test car.As for technical specification the Polo GTI has anti lock braking of course, an electronic stability programme including a differential lock and traction control.Powering the Golf GTI is the VW family used 1.8-litre petrol turbocharged four-cylinder engine that produces 150PS and 162Nm of torque. Top speed is a not inconsiderable 134mph and the 0-62mph acceleration rate is an acceptable 8.2 seconds. Not the fastest in its class but only by a small margin. The car has a slick five-speed manual transmission.The insurance group rating of 13 one of the cheapest in its class and a four-star Euro NCAP crash rating. Long warranty cover and better than average residual values will appeal to many buyers.So there you have it, a good looking, well equipped hot hatch package with a very desirable VW GTI brand label.So do the sum of all these parts add up to a cracking good car in its sector?Image and equipment wise, certainly. As for performance it is not the fastest or the best to drive. It is more comfortable than most as the sports suspension is a satisfactory blend of ride comfort and handling but overall the Polo GTI lacks that on-road precision for swift driving. It suffers from this compromise but I rather suspect that would-be owners are more interested in the image, high build quality, relatively low running costs, quality and reliability.It has good street credibility and that together with the GTI good looks will be enough for most owners.MILESTONES. Volkswagen Polo 1.8T GTI 3-Door. Price: £14,810 (As tested £16,335). Engine: 1.8-litre, 4-cylinder, turbocharged petrol, 150PS and 162Nm of torque from 1,950rpm. Performance: 134mph, 0-62mph 8.2 seconds, 35.8mpg (34.2mpg actual). CO2: 190g/km. VED: band F £190. Insurance group: 13. For: Desirable VW GTI brand values and image, build quality, low running costs, reliability, relatively roomy. Against: Not as sharp in the handling department or as fast as other new hot hatches.