Audi is expanding the A3 line-up with the addition of a new plug-in hybrid model, known as the 40 TFSI e.

Priced from £33,060 (OTR), the new model emits as little as 31g/km of CO2 and has a 41-mile zero-emission range.

The car sits in the 6% benefit-in-kind (BIK) tax band, meaning monthly tax bills of less than £40 for a 20% taxpayer.

Despite its low running costs, the A3 40 TFSI e packs a 204PS output – enough to shift it from 0-62mph in 7.6 seconds.

The battery is mounted under the rear seats and has a 13kWh capacity. It takes around four hours to charge from a domestic socket.

Boot space drops by 100 litres on the TFSI e, from 380 litres to 280.

Two trim levels are offered: Sport and S Line. The latter comes with larger 18-inch alloy wheels, but fleet customers can ‘downgrade’ to 17-inch ones (as per the Sport) to take advantage of the 6% BIK rate.

Sport models come with leather upholstery, dual-zone climate control, lane departure warning, turn assist and swerve assist.

S line models add LED rear lights with dynamic rear indicators, privacy glass, front sport seats with S-embossing and contrast stitching and upgraded interior inlays.

The car is capable of running on electric power at up to 87MPH and can return 282mpg, according to the WLTP cycle.

First deliveries are expected before the end of the year and Audi confirmed a more powerful plug-in hybrid A3 will join the range at a later date.

Read our first drive review of the new Audi A3 here.