It received a major facelift in 1990 and was available in three different body styles, including a distinctive kammback-styled hatchback, nicknamed "breadvan" in the UK but referred to as a Steilheck ("steep tail") in Germany.

A revised Polo model (known as the Mark 2 or Mark II, internally designated Typ 86C) was introduced in October 1981, with the major change being the introduction of a new body style with a steep (almost vertical) rear window which made the car essentially a station wagon, as well a version with a diagonal rear window and a similar profile to the previous model.

These new units also featured the same Heron head design of the 1043 cc engine and higher compression ratios and were available in all body styles depending on the market.

The Polo received some changes in August 1984, including a new dashboard, a bigger fuel tank, and more standard equipment.

These changes helped keep the Polo remain competitive in an increasingly competitive market, which had seen the arrival of the Opel Corsa (Vauxhall Nova in the UK) during 1982, and of three more all-new competitors - the Fiat Uno, Nissan Micra and Peugeot 205 - in 1983, as well as an updated Ford Fiesta in the same year and the new Renault 5 a year later.

By the time an all-new Fiesta was launched in early 1989, the Polo was the only popular European supermini to lack a four- or five-door version, and had also gained a new competitor, the Citroën AX, which was also available with five doors by the end of the decade.

[3] Available with the 1093 cc engine the Coupé featured additions such as sporting seats trim, wheel arch extensions, rear spoiler, low profile tyres and a rev counter, as well as the round headlights which were later fitted across the range.

The Polo Coupé GT received a 75 PS (55 kW) version of the 1.3-liter engine, as well as servo assisted brakes, twin headlights, a digital clock, sports seats, and a rev counter.

This model featured the 1272 cc engine with a small bore G-Lader supercharger, giving 113 PS (83 kW) at 6000 rpm, as well as modified suspension and the bodywork of the "normal" GT Coupé.

A facelift in October 1990, for the 1991 model year, (referred to unofficially as the Mark 2F or IIF) saw square headlights, bigger bumpers and a new interior (dash and door trim).

The aerodynamics were improved by about ten percent; this was in part thanks to the new, more rounded front end, but other details such as the glued-in rear windshields on coupés and hatchbacks also had an impact.

As well as the cosmetic differences, under the skin the car received modifications to the chassis and suspension as well as the addition of servo-assisted brakes to all models including right hand drive versions.

The engine used a slightly different version of the digifant injection system to allow the use of a catalytic converter, and produced 113 PS (83 kW), which gave 0–100 km/h figures of 8.6 seconds and a top speed of 196 kilometres per hour (122 mph).

The car was lowered by 25 mm (1.0 in) over the standard Polo and featuring special edition Le Mans sports seats, similar exterior styling to the GT with the addition of a bee sting aerial and 5.5J X 13" BBS RA cross spoke alloy wheels.

The reliability of these vehicles was hampered by early production mistakes and high maintenance costs — parts of the G-Lader can wear out quickly if unmaintained — which damaged the reputation of the supercharging concept.