This is the new Audi A3, which slots below the Audi A3 in the company’s product range, as the A4 has become quite a large car now. For now, Audi is still calling it a technical study, but undoubtedly this will go into production.

As this car has been called a “notchback sedan” by Audi rather than a full fledged sedan, many were worried that it would end up looking awkward and stubby but the end result you see here is actually quite handsome, with a coupe-like roofline helping to smoothen out the side profile. It measures 4,440mm long, 1,840mm wide and 1,390mm tall, with a 2,630mm wheelbase. It weighs about 1,540kg.

The Audi single frame grille at the front is made of Carbon Fiber Reinforced Plastic. The headlamps are powered by LED, as expected from all modern Audis launched in the past 2 years.

The concept is powered by a 2.5 litre inline-5 engine making 408 horsepower and 500Nm of torque between 1,600rpm to 5,300rpm, which is some very tasty specifications and it would be awesome if a compact and explosive RS3 sedan made it into production to compete with the 1-Series M Coupe. The engine is mated to a 7-speed S-Tronic DSG transmission, sending power to all four wheels via quattro permanent all wheel drive. 100km/h is reached in just 4.1 seconds.

Audi has chosen to give the A3 sedan a rather bright and light interior which seems to clash with the aggressive exterior and engine specifications. The MMI system is full-fledged, complete with connectivity features like using a UMTS connection to turn your car into a Wi-Fi hotspot.

Look after the jump for a small photo gallery.

[zenphotopress number=999 album=2007]