Volkswagen established the performance credentials of the Polo with the supercharged G40 models introduced in the Mk2 and Mk2F generations. The Polo GT G40, fitted with a 40-mm G-Lader supercharger and a 1.3-litre engine producing 85 kW (115 PS), could accelerate from 0 to 100 km/h in 8.1 seconds and reach a maximum speed of 196 km/h. Volkswagen used this car to set world endurance speed records in the 1.3-litre class, including the record for speed over 24 hours and the record for speed over a distance of 5,000 km.
The G40 was sold as a full production model in the Mk2F generation across all markets, whereas the earlier Mk2 G40 had only been available in limited numbers in Europe. Volkswagen Motorsport also prepared G40 Cup cars for one-make racing, launching the Volkswagen Polo G40 Cup series to accompany the road-going model.
The G40 Cup was the first major one-make series built around the Polo, using circuit-prepared versions of the supercharged Mk2 and Mk2F variants. It was succeeded by the Polo Cup championship for cars producing 78 kW (105 hp), which serves as a support race at rounds of the Deutsche Tourenwagen Masters.
In 2004, Volkswagen Individual, a specialist division of Volkswagen, produced a limited number of Polo Mk4 Club Sports for competition in the Polo Cup Racer series. Available exclusively in Germany, these featured a 1.8-litre turbocharged engine producing 132 kW (177 hp), along with a roll cage and Recaro racing seats as standard. A further performance derivative, the Polo GTI Cup Edition, was tuned to approximately 130 kW (180 hp) from the same 1.8-litre turbocharged unit and featured more aggressive aerodynamic styling, 17-inch wheels, and larger 312-mm front brake discs.
Volkswagen Racing entered a Polo S1600 in the 2003 Junior World Rally Championship. The Super 1600 specification car produced 165 kW (221 hp) delivered to its front wheels and secured a round victory in Turkey.
The Volkswagen Polo R WRC represented the most successful application of the Polo nameplate in international competition. Sebastien Ogier won the FIA World Rally Championship for Drivers in 2013, 2014, 2015, and 2016 driving a Polo R WRC, giving Volkswagen Motorsport four consecutive titles before the manufacturer's withdrawal from the championship.
In South Africa, Volkswagen Racing campaigned a four-wheel drive Polo Mk4F S2000 specification car that shared components with the Skoda Fabia used in the World Rally Championship programme. This variant was fitted with a 2.0-litre engine producing 191 kW (256 hp). Polo models have also competed in the Russian Touring Car Championship.
The GTI name was applied to the Polo for the first time in 1995 with a limited batch of 3,000 Mk3 GTI models, marking the model's entry into the broader hot hatch motorsport ecosystem. Subsequent GTI generations, including the Mk4F GTI and the Mk5 GTI, formed the basis for further cup and track-day competition cars. The Mk5 Polo GTI introduced VW's 1.4-litre TSI engine combining both a supercharger and turbocharger, producing 130 kW (180 PS), which underpinned further performance racing variants.
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