The mighty German automotive machine has declared war on the one tonne utility market.

Volkswagen's commercial division has taken the wraps off a macho looking work and play 4x4 dual cab ute this week at the Hanover commercial vehicles show.

Called simply the Pickup, details of the vehicle are still sketchy at this stage.

But Volkswagen Australia says it will definitely have its hand up for the ute, with lucrative light commercial sales at stake.

The ute with a working name of Robust would go head to head with the likes of Toyota's HiLux, Nissan's Navara and the Holden Rodeo - to name a few.

Volkwagen Australia spokesman Karl Gehling said the ute would be a nice addition to the company's light commercial range.

Pickup will usher in a fourth series of light commercials for the company and is expected to go into production towards the end of 2009.

It will join the existing Caddy, Transporter and Crafter lines.

With the launch of the new ute, Volkswagen Commercial Vehicles will become the first volume manufacturer in Europe to enter the one-tonne pickup segment, with its high growth global potential.

According to Volkswagen Commercial Vehicles boss Stephan Schaller, the key markets for the Pickup are the countries of South America, especially Brazil.

He also sees South Africa, Australia and South East Asia as being important markets for this universally adaptable commercial vehicle.

And the vehicle will also be introduced into the European market.

Overall sales projections for the new Pickup amount to around 100,000 units per year.

Pickup is expected to follow a front engine, rear drive format and will be built in left hand drive configuration in Argentina, initially for the South American market.

Right hand drive vehicles will follow and could be sourced from South Africa, with a 4x4 version also likely.

Measuring 5.18 metres in length and 1.9 metres wide, with flared guards, a bash plate and beefy off road rubber Pickup is no shrinking violet.

Power is expected to come from a 2.5-litre turbo diesel engine, drawing on Volkswagen's 4Motion all-wheel drive system for its off road ability.

With four doors and four seats it can be fitted out as either a work or recreational vehicle, with the ability to carry a standard size pallet in the tray between its rear wheel arches.

The Hanover show car has been fitted out as a search and rescue vehicle, with features such as GPS navigation, a CB radio, compass, and binoculars as well as a life-saving defibrillator, life jackets, flotation devices, blankets and a tool kit.