Volkswagen has revealed an updated version of one of its most popular cars, the Passat, at the company's Design Centre in Potsdam, Germany. The all-new Passat will include premium features but will also come with a competitive price tag.

The latest version of the Passat will make its public appearance at the Paris Motor Show in October this year. The Passat has been the second most popular car of the company, after Golf, and has exceeded sales of 26 million units globally.

The upcoming Passat will be the eighth-generation car and will have a new design, interiors and engine. Volkswagen suggests that the new Passat will be 85 kilograms lighter than its previous iteration and will also offer improved fuel efficiency of 20 percent. The company claims that the upcoming Passat will bridge the gap between upper medium and premium class.

"This Passat heralds in a new era: when it comes to design and proportions, engines and drive systems, Infotainment and assistance systems or when it is a matter of safety, convenience and driving pleasure," says Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen. "The new Passat gives the right answers to the major automotive trends of its time. For me this Passat is a premium class car without premium costs. This fits perfectly to Europe's most successful business car - lining up with 20 percent better fuel economy, up to 85 kilograms less weight and a range of efficient petrol and diesel engines - there is even a plug-in hybrid available."

In Europe, the company is facing stiff competition from rivals such General Motors, Renault and Ford. The company sales fell by 13 percent in the first half of this year in Europe. The automaker's sales also plummeted by 21 percent in South America.

Winterkorn adds that the upcoming Passat is a premium model without a premium price and will give a boost to the entire company. The all new Passat will also help the company to compete with rivals and attract more customers.

The Passat will be equipped with an emergency autopilot system, which will start if the driver falls sleep by any chance. The car's computer will try to wake the driver but if the driver does not wake then the autopilot system will steer the car to the emergency lane and bring the car to a halt.

Even though Volkswagen has included new features and a fuel efficient 5.3 litre turbo engine to the new Passat, the price will be just marginally over the current model. The company says that the base model will have a price tag of €25,900 ($35,200), which is just €500 more than the current model.