Audi’s baby sedan, the A3, is slated for launch on August 7. Unveiled at the Delhi Auto Expo earlier this year, the carmaker’s entry into the compact luxury space is expected to be priced only slightly above the Mercedes A-class and BMW 1-series hatches, and hence, will give them tough competition when it goes on sale.

The Audi A3 might be a compact luxury sedan, but with about as much legroom as a Verna at the back. The cabin is packed with enough equipment and features to give you all your money’s worth. It looks larger than it actually is, and the design is pure Audi.

 The A3 will be powered by both petrol and diesel, both equipped with automatic gearboxes. The 1.8-litre TFSI direct-injection turbo petrol engine is tuned to make 177-bhp, while the 2.0-litre diesel engine puts out 141bhp. Audi has also introduced a new nomenclature for the India-spec cars with the A3. So, now instead of 2.0TDI, the car badging would now be 35TDI and the more powerful petrol variant would be 40TFSI instead of the typical 1.8TFSI. The numbers in the new nomenclature are relative indicators of power that a particular model makes.

When it goes on sale, the top-end petrol and diesel variants are expected to be priced in the region of Rs 27 lakh.