Shoehorning big engines into tiny cars is what Volkswagen do best and this time, it looks like they’ve outdone themselves, again. This week, at the Wörthersee festival in Austria, the Wolfsburg-based carmaker has unveiled the Polo WRC Street concept car.

As you can see, the design inspiration for the concept is taken from Volkswagen’s WRC car. It wears new aero parts to make it look close to the racing version. These additions include a redesigned front bumper with larger vents and lip spoiler, a rear diffuser, black wheel arch extensions, a rear wing and bigger alloy wheels.

On the inside, the car comes with new sport seats and an Alcantara-wrapped steering wheel.

Powering the very sizzling Polo will be a 2.0 litre TSI four-cylinder engine that generates 220 PS, 10 PS more than the Golf GTI. And because this is the hottest street version of the Polo, it comes as no surprise when Volkswagen says they have tuned up the chassis. This Polo R WRC Street will have lowered sports suspension.

The launch is expected to happen late 2013.