Volkswagen has taken another step towards making the one-liter car a reality, and this 200 mile-per-gallon dream could be on the roads within the next few years.

The Formula XL1 Concept combines a 2.0-liter TDI engine, electric motor, lithium-ion battery pack and a seven-speed dual-clutch transmission to achieve an astonishing 0.9L/100 km – just over 260 miles per gallon to us Yanks. The included plug-in system, along with the XL1′s low drag and extensive use of lightweight materials has the potential to make the concept the most efficient vehicle to ever grace public roads.