The XL3 name could be symbolically used for the new hybrid in order to make it a 'legitimate' successor to Volkswagen's XL1 experimental deisel-hybrid that achieved fuel consumption of less than one litre per 100 kilometres. Volkswagen XL3, or whatever its name will eventually be, most likely won't be able to achieve such radical fuel consumption figures, but it will undoubtedly be able to compete with the likes of Toyota Prius and Hyundai Ioniq Hybrid.

It will be based on a new platform, probably named MEB, which will be developed by Volkswagen for hybrid and electric vehicles. The platform will likely share majority of its design with current modular MQB used by VW for its front-engined, front-wheel cars, so it will probably be compatible with a wide range of vehicles.  

The powertrain will probably consist of 1.4-litre turbocharged petrol engine (featuring the possibility of cylinder deactivation to additionally save on fuel), an electric motor and a somewhat smaller battery, enabling an electric-only range of just a couple of miles, yet with a fuel consumption of only three litres per 100 kilometres.