Audi has entered an all-new area of the Australian car market with its stylish little A1 three-door hatchback. The BMW Mini has been in Australia for years and the recent release of the Citroen DS3 expanded interest and now Audi A1 has entered the fray.

Other vehicles that are almost in the same European class are the Fiat 500, though it’s slightly smaller than the others; and even the Volvo C30, however it’s slightly more sedate and Swedish in its styling.

Audi A1 is being aimed at the young and trendy, but we wouldn't be surprised to see many older couples getting into them as well. After all those who are now approaching their retirement years were part of the rock and roll and hippy generations. Many of these people want to bring back memories of their younger years and will find the dress-up offerings on the cute Audi are great fun to play with.

Style is the name of the game in this area of the car market and the Audi A1 has plenty of it. While the large grille at the front may look similar to that of larger cars and SUVs in the Audi range it actually takes the single-grille theme in a new direction. Note in particular the shape of the top corners of the grille where an interesting new diagonal shape has been introduced.

From the side the most obvious feature of the Audi A1 is the domed profile of the roof and the hoops that support it. The latter can be ordered in various different paint hues to really make it stand out. But the hoops can also be chosen in the same colours as the roof. Incidentally, a large panoramic sunroof is also on the extensive options list.

A feature of this car class is the large number of choices available and Audi has taken the interesting route of offering the sort of features normally only seen in its topline models. These include automatic locking and unlocking, several stages of audio and infotainment systems including an upmarket Bose one, satellite navigation, leather trim, a multi-function steering wheel. We suggest a trip to your Audi dealer to check out how the extensive lists can tailor the Audi A1 to your very specific needs.

Though the Audi A1 has a recommended price list that begins at a mere $29,990 plus on-road costs, the options list soon pushes the price skywards. We drove several models during the press introduction of the vehicle in Melbourne that would cost well over $40,000 by the time they were sitting in your garage.

The only engine on offer in Australia at this stage is a 1.4-litre turbocharged unit that produces 90 kilowatts of power and 200 Newton metres of torque. This engine takes advantage of the latest in turbo and direct-injection technology to produce that 200 Nm all the way from 1500 to 4000 rpm. In other words, almost all drivers will have the engine at its torque peak all the time to get the greatest efficiency from it.

This efficiency sees the engine having an official fuel consumption rating of only 5.3 litres per hundred kilometres. If that sounds impressive, just wait for the introduction of the high-economy 1.6-litre turbo-diesel that’s coming to Australia midway through 2011. This unit has a consumption of a mere 3.8 litres per hundred kilometres, and produces under the magic figure of 100 grams of CO2 per kilometre.

New Audi A1 is a four-seater but most Australian buyers are likely to regard it as a two-plus-two. While there is space in the back seat for adults headroom is tight and it will often be necessary to come to a compromise on legroom with those in front of you.

On the road we were impressed by the quality of the ride and handling. While coarse-chip surfaces do let a fair bit of noise into the cabin the Audi is no worse than many other small European cars.

We were impressed with the visibility permitted to the front/side by the clever design of the windscreen pillars. Though these pillars look substantial enough to provide strength in a big crash, their shape means the driver suffers minimum inconvenience on twisting roads.

The new design engine in the Audi A1 is also used in versions of the VW Golf and Skoda Octavia where it works well. In the lighter and nimbler Audi A1 it provides plenty of punch and has minimum turbo lag.

Anyone looking for style and class in a prestigious car should certainly be taking a look at this cute new A1 from Audi.

The Audi A1 model range, with prices (excluding government and dealer charges*) is:
A1 1.4 TFSI Attraction 6-speed manual: $29,900
A1 1.4 TFSI Attraction 7-speed S tronic: $ 32,250
A1 1.4 TFSI Ambition 6-speed manual: $32,650
A1 1.4 TFSI Ambition 7-speed S tronic: $35,000

* Contact your local Audi dealer for driveaway prices.