The new model replaces the former 105g/km, 70.6mpg 1.6 TDI A1 and achieves its improved economies through further optimisation of the fuel system and engine management unit, aided by engine start-stop and energy recuperation systems.

As a result, the model is now zero rated for VED from year two onwards and is exempt from the London congestion charge. Like its predecessor, it qualifies for 13% BiK for 2011/12. 

In terms of performance, the A1 1.6 TDI with five-speed manual transmission goes from 0 to 62mph in 10.5 seconds and reaches a top speed of 118mph.

OTR prices for the SE, Sport and S line models remain unchanged and range from £14,480 to £17,865.

Features common to all include alloy wheels, remote central locking, air conditioning, electric front windows and mirrors and a six-speaker single CD audio system with auxiliary iPod connection linked to a 6.5-inch retractable display.