VOLKSWAGEN has extended the appeal of its ever-popular Golf by adding a highly economical plug-in hybrid option to the range.

With powerful GTI looks combined with hybrid economy it really does offer the very best of both worlds.

There is just one model to choose from with a DSG six-speed automatic gearbox and all the trimmings associated with the GT (Gran Turismo) name-tag.

The GTE is powered by a 150bhp 1.4 turbo petrol-driven engine alongside a 102bhp electric motor and together they can deliver a maximum power of 204bhp and according to VW a theoretical range of 580 miles with a combined 166mpg.

But anyone thinking power and driving dynamics have given way to economy should think again because the GTE delivers all the hot hatch handling you could wish for.

It can sprint to 62mph from a standing start in 7.6 seconds and tops out at 138mph. And the carbon emissions figure of just 39g/km brings with it all sorts of financial savings.

The GTE is available as a five-door hatch only and whereas the trimmings on a GTI are in red, they are blue on the GTE. So there are blue accents across the radiator grille, headlights and blue brake callipers.

The colour theme is just as apparent inside the car too with blue stitching on the steering wheel, armrests, gear lever and a blue stripe on the tartan patterned sports seats.

The car is richly equipped with plenty of techno treats to be explored, including a 5.8-inch touchscreen, DAB radio, a CD player with eight speakers which is compatible with all modern media devices, Bluetooth, sat nav (optional extra), parking sensors, dual-zone climate control, automatic lights and wipers plus plenty more besides.

Space within the cabin is similar to the GTI with ample room for two adults in the back. The boot is limited to 272 litres of storage because it also accommodates the battery but split-folding rear seats allow this capacity to be increased to 1,162 litres.

So the Golf GTE certainly boasts some impressive stats and features all the build quality and technology one has come to expect from a Golf. But how does it handle on the open road? The answer is exceptionally well.

The acceleration is blisteringly fast and there is a constant supply of power on tap. The steering is precise and road-holding flawless meaning tight bends can be attacked and conquered at pace.

There are five different driving modes to choose from - E-mode, GTE mode, battery hold, battery charge and hybrid auto.

In pure electric mode - which is activated at the press of a button - the GTE can travel up to 31 miles.

Another clever trick is the storing of electric power which can save a fortune if travelling through congestion charge zones. And performance in electric mode is pretty impressive too as the GTE can reach up to 81mph.

The Golf GTE, which is priced at £28,035 (including the Government's £5,000 plug-in car grant), can be charged in three hours 45 minutes from a standard mains outlet or just two hours 15 minutes from a domestic wallbox.

All in all, the GTE is a great addition to the extensive Golf range. It beautifully blends the economy of a hybrid model with all the fizz, pop and power we have come to expect from a GT model.