The second generation of the Passat made its appearance in 1981, and it was available in three body-shapes: sedan, hatchback, and station wagon.
While the first generation was a shy temptation to open the doors for a new era, the second generation of the Passat established the vehicle’s place on the market dominated by French and Italian carmakers.

Its angular lines, the big rectangular headlights, and the plastic bumper were a fresh look on the market. The sloped back made the car both practical and fuel-efficient due to its better aerodynamic than the regular three-box sedans or the station-wagons. Its overall look was sporty, the way the four-doors coupe were seen two decades later.

Inside, the Passat was roomy, with ample legroom and headroom for up to five passengers. The folding rear bench seatback allowed the trunk to be extended from 388 liters (13.7 cu-ft) to 1500 liters (53 cu-ft). Volkswagen installed two large dials for the speedometer and tachometer in the angular instrument cluster, and two smaller gauges for the fuel level and coolant temperature. There was an area with ten lights for turn-signals, hazard, oil-pressure, parking brakes, and a few other important warning lights in the middle.

The Passat hatchback was offered with a wide choice of engines, both diesel, and gasoline. Its long-range autonomy, of over 1000 km (623 miles), made it one of the most cost-effective cars on the market. Its reliability and low running costs increased over the years.