The Los Angeles Motor Show was home to yet another world debut yesterday, as Volkswagen premiered the Up! Lite concept.

Based on its new small car family, the VW Up! Lite incorporates a variation of the two-cylinder TDI hybrid powertrain from the L1 Concept that made its debut at the Frankfurt Motor Show back in September. This new family of models is expected to launch by the end of 2011 with VW executives hinting that the Up! Lite might be commercialised.

This five-seat concept includes a newly designed 0.8TDI two-cylinder turbo-diesel engine that delivers power of 38kW. It also has an electric motor that reduces the load of the TDI and provides added propulsion while working to recover kinetic energy through regenerative braking. The direct injection engine achieves 120Nm of torque between 1,800 and 2,250rpm.

The vehicle is capable of 70mpg highway with reduced carbon dioxide (CO2) emissions at an eye-catching 65g/km. Anyone wanting to achieve the full savings should click on an “Eco” button in the car that activates an operating mode that reduces the engine’s power output.

The VW Up! Lite is classified as a full hybrid as it is capable of pure electric driving. It has a top speed of 100mph and can accelerate to 62mph in 12.5seconds.