The sub-4 metre sedan will be available with both petrol and diesel engines.
Besides Ameo, the company also plans to launch three new models including premier SUV Tiguan and Passat hybrid during the next financial year.
"We will launch Ameo in the second half of this year. It is a car specially designed for the Indian market. It will mark our entry into the growing volume segment in India," Michael Mayer, director, Volkswagen Passenger Cars India said.
The compact sedan segment continues to garner much interest among Indian consumers and the company is happy to mark its presence in this competitive segment, he added.
The sub-4 metre sedan will be available with both petrol and diesel engines. The 1.2 litre petrol engine will be mated to 5 speed gear box while the 1.5 litre diesel engine will be available in 5 speed manual and 7 speed automatic transmissions.
Volkswagen Ameo has been designed specifically for the Indian market. It will be manufactured at VWs Chakan facility in Maharashtra.
It will compete with the likes of Maruti Swift Dzire, Hyundai Xcent, Honda Amaze, Tata Zest and Ford Figo Aspire.
The company has positioned VW Ameo as made-in-India and made-for-India carline.
Elaborating on the product pipeline for the next fiscal, Volkswagen Board Member for sales and marketing Jurgen Stackmann said: "During the next fiscal, we will be launching four new models bringing our greatest model range ever to the Indian showrooms."
Besides, Ameo, Tiguan, Passat Hybrid, the company would also launch Polo GTI during the period. Volkswagen currently sells Polo, Vento, Jetta and Beetle in India.
Photographs, courtesy: Volkswagen
Car sales get off to a slow start in 2016
5 best cars launched in 2015
College student abducted in Gurgaon, freed hours later
Big launches at Asia's largest auto show
REVIEW! Why Maruti Swift DZire is a great choice for car buyers