The Volkswagen Group's next-generation hypercar, widely tipped to be named the Bugatti Chiron, is rumoured to have an asking price of 2.2 million euros ($3.5 million).

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Sources have told Car that the new Bugatti will priced from 2.2 million euros ($3.5 million) when it goes on sale some time in 2016. When the Veyron was initially launched, it had a base price of around 1.2 million euros (about $2 million in 2005 money).

Despite the hefty price increase, it's said that Bugatti customers have already begun putting money down on the new car. Bugatti is said to have begun showing the Chiron to select customers.

Rumour has it that the vehicle was displayed in the flesh at an invite-only event at the Pebble Beach Concours d'Elengance last month, with a disguised vehicle, possibly a Chiron prototype, spotted at Los Angeles International Airport.

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The British magazine believes that the Chiron will built upon an upgraded version of the Veyron's platform. The new vehicle will feature completely new styling, although the overall proportions will be unchanged.

Under the skin, reports indicate that the Chiron will be powered by an 8.0-litre W16 engine churning out around 1100kW. Coupled with an all-wheel drive system, the Chiron should be good for a top speed of about 460km/h and a 0-100km/h time of around 2.3 seconds.

Martin Winterkorn, Volkswagen Group CEO, told German media earlier this year that “there will be, for the first time, next to the petrol model, a hybrid version with improved performance”.

During its lifetime, Bugatti is expected to produce 500 Chirons for sale. The company ended production of the Veyron this year with the 450th car, dubbed La Finale (above).

According to Car, the new Bugatti will make its public debut at the 2016 Geneva motor show in March.