Sector: Supermini Price (June 2013): €25,370 Fuel: 4.1l/100km CO2: 108g/km

Taking on the ultra-desirable MINI was never going to be an easy task for the Audi A1, but it’s stood its ground incredibly well and the addition of a 2.0-litre TDI gives it exactly the drivetrain needed to compete with arch rival and popular user-chooser option the Cooper SD.

A mid-spec engine in larger models, it turns the tiny A1 into a surprisingly potent warm hatchback. With 143hp on tap, it’ll sprint smoothly up to 100kph in around eight seconds, before slipping into sixth gear for long-legged motorway cruising.

Punchy mid-range performance means it’s genuinely good fun to drive, while real-world fuel consumption that easily drops below 5l/100km while cruising and CO2 emissions of 108g/km mean it should be cheap to run, helped along by the A1’s strong residual values.

With no RS version of the A1, and the lairy S3-powered A1 quattro limited to a small production run, the sportiest models are really defined by the S line package. This adds an aggressive bodykit and sports interior upgrades, including supportive front seats and aluminium pedals. Material quality is high enough to shame plenty of larger cars, and the styling add-ons give it an almost TT-like interior feel.

Plus the Sportback has a trick up its sleeve. Unlike its closest rival it has back doors and a surprisingly generous boot, albeit with a very high load floor. There’s plenty of headroom in the back and enough room for adult occupants not to feel too cramped, but a car full of tall passengers will mean pressing knees against the dashboard.

It adds up to a great small car – stylish, practical and very usable over long journeys, but also good fun to drive when the roads are more interesting and with a desirable badge on the grille. For all except the most hardened of motorway drivers, it begs the question – do you really need an A3?

But, just like the MINI, the A1 is an expensive small car. The S line Sportback costs over £20,000 with this engine, which is a lot of money for a supermini – even moreso when you consider that doesn’t include full leather, satellite navigation or even rear floor mats. But all of this is familiar for anyone pricing up a MINI, and residuals are firmly in its favour.

In reality, though, with strong residuals and low running costs in its favour, the A1 offers enough long-distance ability to be a viable downsizing option, while giving a bit of extra manoeuvrability in tight spaces. A very different car to the MINI, but cut from the same cloth.

Verdict:

The A1 is accomplished enough to take on most situations you’d expect to need an A3 for, and with this longer-legged diesel engine it’s even up to motorway mileage when required. It’s not cheap, but strong residuals and low running costs mean the entry rung on the S line ladder isn’t cripplingly expensive either.