The Volkswagen XL1 hybrid car has been named the winner of the Transport category in UK’s annual Designs of the Year Awards.

The XL1 is one of 76 designs in seven categories currently on display at the Design Museum in London until August 25.

It will now go on to compete for the Design of the Year 2014 award against the winners of the other categories – Architecture, Digital, Fashion, Furniture, Graphic, Product – with the overall winner announced June 30.

Now in its seventh year, the Designs of the Year exhibition gathers together cutting-edge innovation and original talent, aiming to showcase the very best in global design.

“From the daringly innovative to the reassuringly good, Designs of the Year 2014 is a condensed and vivid selection of the last twelve months in design,” said Curator of Designs of the Year Gemma Curtin. “This spectrum of expert-chosen design is an insight into what design can do for us both as individuals and as a society.”

Penned by a team led by Klaus Bischoff, Head of Design for the Volkswagen brand, the XL1 is a limited series production two-seater car that explores the limits of energy efficiency for a road-legal production vehicle, said VW.  It was nominated for the exhibition by author and automotive design and technology expert, Andrew Nahum.

VW explained the design brief for the XL1 was to produce a ‘one liter’ car – that is to say, a car that uses one liter of fuel per 100 km, equivalent to 282 miles per imperial gallon. The resulting vehicle uses just 0.9 liters per 100 km, or 313 imp. mpg.

Members of the public can also have their say on Designs of the Year in the Visitor Vote, which allows visitors to the Design Museum to pick their favorite design from the exhibition.

New for 2014 is the Social Vote which sees two nominations fight it out each day through the exhibition’s online Social Vote platform. Broadcast to over one million of the Design Museum’s Twitter and Facebook followers, the Social Vote allows people from all over the world to participate in Designs of the Year.