AUDI'S all-new A3 - the German manufacturer's prestige sports hatch - is to go on sale in the UK in October. Audi expects to sell around 5,000 A3s during its first full year on sale in the UK and a significant proportion are expected to go to young company executives who would perhaps have previously chosen a BMW Compact under their company's fleet policy.

The car will be launched with a choice of three engines - two 1.8 litre four cylinder five valve engines, a non-turbo with 125 bhp and a turbocharged version with 150 bhp, and a 1.6 litre four cylinder with 101 bhp. Prices, performance figures and specification for the new car will be announced nearer launch, although standard specification will reflect levels seen on the A4, A6 and A8. Lead-in prices are expected to be between £13,000 and £14,000 with insiders saying the new model will be highly specced with as much room as an A4.