Like the current A8, the manufacturer says, the car 'combines the classic attributes of a luxury saloon with a sporting bias which favours keen drivers'.

It adds that its enthusiasts are 'active motorists demanding a high level of dynamic ability engineering and innovation'.

Mercedes-Benz S-class drivers choose the model to show they have 'made it' and BMW 7-series drivers believe the car shows them as a 'go-getter' in the eyes of others, Audi said.

Audi director Kevin Rose told Fleet News during the car's launch in Barcelona that he expected the new Audi A8 to fight its corner well. The current model typically sells between 700 and 800 units a year in the UK but Audi hopes to increase sales for the new model to about 1,200 during the first full year of sales in 2004.

Rose added that the company would promote the car to larger fleets.

He said: 'We are now in a better position to talk to larger fleets about our new A8, and we will have a wider range available so that will help us.

'The current model, where corporate sales are concerned, mainly goes to smaller companies. Corporate sales account for about 65% of total sales for the A8 but we don't expect that to change dramatically with the launch of the new model.'

Due for launch in the UK next May, the A8 will initially come with the choice of two V8 engines – a 3.7-litre and 4.2-litre. Two TDI diesel engines, a 3.0-litre V6 and 4.0-litre V8, will come later in the year. Although prices have yet to be confirmed, it is expected to cost about about £51,000 for the smaller engined car and £54,000 for the more powerful model.

Audi will harmonise the car's pre-tax price across Europe, although list prices will differ because of different levels of taxation in each country. Rose added: 'I hope people see the A8 as one of the best cars in its class – it is a very real alternative to Mercedes and BMW. It has its own unique advantages. Also, the Audi brand has become much stronger over the past few years. People who would not have looked at it three or four years ago are now interested.'

Business travellers may even get the chance to try the A8 as a daily rental car – but they shouldn't hold their breath. Audi has held talks with Europcar (they share a parent in Volkswagen) about the possibility of an airport-based promotional campaign but nothing has been finalised.

Rose said: 'Anything we do involving daily rental must be done intelligently.'

He said he wasn't under any pressure to put Audi on to Europcar's fleet but that the manufacturer was 'duty bound to consider what we can do'.

In terms of growth, Audi is heading for a record sales year. Two years ago it sold about 40,000 cars a year – this year it expects to shift up to 63,000 units. Its ambition is to sell 80,000 cars a year in the UK.

'We've got to work on it,' Rose admitted, 'but we have a great story to tell. We will continue to grow but we will do that by bringing in new models and not just relying on the ones we have now. For example, we're not in the SUV (sports utility vehicle) market at present and that is something we will address.'

Behind the wheel

IF Britons react in the same way that Spaniards did to the new A8, then Audi UK has an easy job on its hands.

In Barcelona, my co-driver and I came up with a seemingly simple plan to head up into the mountains to test the car – we drove the 3.7-litre V8 version – and then take a coastal route back to the hotel where we were staying.

But it didn't quite work out that way. Instead, we spent about an hour and a half trying to find our way out of the city, squeezing a big car through tiny streets and meeting the same set of roadworks again and again.

What the failed exercise did achieve though, was to give the Spanish public plenty of opportunity to see the car in the metal for the first time. I simply couldn't believe the level of interest it commanded.

Motorcyclists would stop alongside us at traffic lights and angle their bikes so they could have a proper look in.

And on one occasion, while stuck in traffic, a Spanish waiter walked round the car twice, approached a window and gave us an appreciative nod while holding a thumb up. His enthusiasm was such that I'm sure he would have used both thumbs had he not been holding a tray.

That particular trip didn't allow proper assessment of the car out on the open road but I can tell you it's a star performer in the city. It is also incredibly comfortable and the stop-start trip we endured allowed us to safely play with what Audi calls its Multi Media Interface, or MMI in short.

This 'infotainment platform' has been positioned to ensure the controls can be reached comfortably. I found this to be spot on and the system is pretty easy to use too. Although I relish the opportunity of studying a manual when I buy a new electronic gadget, Audi pointed out that most people do not.

Hence the main functions of the system – entertainment, communication, information and the control of vehicle systems – are accessed by eight easily identifiable function keys.

With the function menus pressed, you carry on using the system via the central control button. And when the MMI display is not in use, you can make the monitor disappear into the wooden trim.

The car's interior is uncluttered but that doesn't mean it lacks gadgets. There will also be a raft of options to choose from, including steering wheel-mounted gear shift paddles, an 'advanced key' system that acts as an electronic access and authorisation system and radar-assisted cruise control.

The next day I drove the car on a proper road, this time in 4.2-litre V8 guise. This model produces a whopping 335bhp, up from 310bhp in the current model. The new A8 features a six-speed tiptronic gearbox that suits the engine well. It's fast, it's smooth and it's quiet.

Driving verdict

The A8 is a stylish and classy car (it looks particularly stunning from the rear in the metal) and it's a pleasure to drive. The car has a tough job competing with the likes of the S-class and 7-series but after even a short time with the car, I believe this four-ring-badged model is a serious contender.

Models: 3.7-litre Quattro and 4.2 quattro
Engine (cc): 3,697 - 4,172
Max power (bhp/rpm): 280/6,000 - 335/6,500
Max torque (lb-ft/rpm): 360/3,750 - 430/3,500
Max speed (mph) 155 (limited) - 155 (limited)
0-62 (sec) 7.3 - 6.3
Fuel consumption (mpg): 23.9 - 23.75
CO2 emissions (g/km): 281 – 286
Prices: TBA (estimated £51,000-£54,000)
On sale: May 2003