Audi is now offering its A3 hatchback with a punchy and fuel efficient new engine.

Replacing the existing 1.6-litre engine, the Audi A3 1.4TFSI has a turbocharged 1.4-litre FSI engine producing 124bhp and 147bhp.

This enables the sporty hatch to accelerate from 0-62mph (100kph) in 9.6 seconds and on to a top speed of 126mph.

On top of its impressive performance, the A3 manages a combined 43.5mpg.

And carbon emissions of 154g/km put it in tax band D meaning an annual bill of £140.

The A3 1.4TFSI goes on sale in October with prices starting from £16,365.