Here’s the one liter car for which everyone was waiting since long. This, Volkswagen L1 Concept, is the car that uses one liter of fuel – about a quarter of a gallon, to propel a car for 100 kilometers, or 62 miles.

The L1 concept’s fuel economy translates to almost 240 mpg. The concept is a prototype that is close to production and will be developed, said the company. 3 ingredients that were needed for the L1 to happen were a supremely efficient powertrain, great aerodynamics and lightweight engineering.

As to the powertrain, VW has opted for a two-cylinder, 39-hp turbo-diesel engine combined with a 14-hp electric motor. There is a stop/start system and a seven-speed dual-clutch transmission. The L1 can reach 100 mph, but fuel economy at that speed drops to a shameful 1.38 liters per 100 kilometers, or 170 mpg.

The front-wheel-drive L1’s aerodynamics is optimized by the two-seat layout with the occupants sitting in a row. The result is a car that is relatively long, quite low, and extremely slim. The monocoque and body is made of carbon fiber, and total weight of the L1 is a mere 838 pounds. The seating configuration may change with the progress of development.

The L1 is expected to hit the markets in early 2013.