There are many reasons why car buyers choose an SUV, but the main factors are style, perceived off-road ability and the statement the car makes about the driver.

Yes, there are some very handsome SUVs on the market, but many are too big for towns, and the styling on others is questionable. And yes, most are adept at crossing the muddy stuff for the two per cent of drivers who chose to do so.

And they certainly make a statement; but in today's climate of congestion and carbon dioxide, is that statement the wrong one?

Stuart Milne has come to Munich to sample an all-new off-roader; one which is as good in town as it is axle deep in mud – the Audi A4 Allroad.

It's incredible to think that despite Audi pioneering the use of four-wheel drive systems for passenger cars three decades ago, it took until 2000 for it to build a car totally at home on the rough stuff.

That car was the original Audi Allroad, a model which created a new niche – the Sport Utility Wagon. It blended large estate car sensibilities with Audi's legendary Quattro four-wheel drive system and a rugged demeanour.

The Allroad found favour with the upper classes who wanted a car to traverse their slippery fields in luxury, but didn't want anything as vulgar as a full-fat SUV. They seem frightfully 'new money', you know.

More Allroad choice

Almost a decade on, Audi has doubled the size of its Allroad offering – and increased the potential market exponentially with the Audi A4 Allroad.

Like the Audi A6 Allroad, it takes the successful formula of the basic car, and injects plenty of rugged charm and enough off-road ability for all but the most demanding of mud-pluggers.

There will be three engines to choose from when the Audi A4 Allroad goes on sale in May: a 2-litre and 3-litre diesel and a 2-litre petrol. All engines are turbocharged, and all are compliant with the forthcoming Euro V emission regulations. And importantly, no engine emits more than 189g/km of CO2.

Indeed, the 2-litre TDi emits just 169g/km of the bad stuff, which will help it to account for around 80 per cent of sales.

And that's a good thing, because it's the best all-rounder, offering a sub-nine second dash to 62mph and a 132mph top speed. But of more relevance to most buyers, are its good levels of refinement, and an average of 44.1mpg.

This engine will only be offered with a slick six-speed manual at launch, although the other engines feature the VW Group's excellent dual clutch semi-auto 'box, which Audi calls S Tronic. We tested this 'box in the 2-litre petrol and 3-litre diesel, and found while it offers gearshifts quicker than you can blink, our cars also experienced driveline shunt at low speeds, making for a clonk as the cogs were swapped.

Further engine/transmission configurations will be made available after launch, including a 143PS version of the 2-litre diesel.

Derestricted autobahn

Our test route from Munich to Ingolstadt; the home of Audi, took us on some sweeping country roads as well as stretches of derestricted autobahn. This very quickly revealed the Audi A4 Allroad to be an excellent, refined high speed cruiser, which is also capable of entertaining through the bends, thanks to direct and linear steering, masses of grip and – despite sitting 30 per cent higher than the standard car – minimal bodyroll.

The cars we tested were fitted with Audi Drive Select, which firms the suspension, increases throttle response and sharpens and quickens the steering. We've tested a derivative of the system before in the Audi S4, Volkswagen Golf Mk6 and Volkswagen Scirocco, and it works excellently, changing the character of the car.

We also sampled the Audi A4 Allroad's off-road credentials at an off-road course. While far from a tough course, it represented more challenging terrain than many Allroads will ever encounter.

That's thanks – in part – to the raised ride height, and underbody protection, but also to the stunning Quattro four-wheel drive system and clever ESP electronics which has an off-road mode. The wheels are 23mm further apart, improving stability and the brakes are larger and employ extra cooling power over the standard A4 Avant.

Rough and tough

Outside, the Audi A4 Allroad feature tough and rugged-looking bumpers and wheelarch extensions, alongside extended side skirts, although we found the later prone to getting occupants' dirty on exiting the car.

Inside, its standard Audi A4 fare, which means an elegant look, and first rate build quality. Several trim variations are available, including unusual textured wood inlays, rather than the highly-polished parts in many cars.

Audi is keen to sell the benefits of the A4 Allroad to those seeking an active lifestyle, and it certainly seems flexible. The 2-litres have a maximum towing capacity of 1,900kgs, while the 3-litre ups this by 200kgs; a reversible loadliner helps keep muddy luggage from getting the boot dirty, while higher roofrails and a clever system of bars and belts help keep luggage from sliding across the 490-litre boot (1,430-litres with the seats folded).

Just one trim level will be available, which includes power mirrors, three-zone climate control and driver, passenger head and front side airbags. Audi says it expects the average price of the A4 Allroad to be around £39,000, which is a lot considering the most popular model – the 2-litre TDi – is priced at just under £30,000.

And that's the biggest problem for the Audi A4 Allroad. The 3-litre TDi is priced just £85 less than the equivalent Audi Q5. And despite the wonderful abilities of the Audi A4 Allroad, the perceived extra value for the mid-sized Audi Q5 SUV might limit sales.

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